Commitments and Contingencies |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | Commitments and Contingencies Legal Proceedings The Company may from time to time be party to legal or regulatory proceedings, lawsuits and other claims incident to its business activities and to its status as a public company. Such routine matters may include, among other things, assertions of contract breach or intellectual property infringement, claims for indemnity arising in the course of its business, regulatory investigations or enforcement proceedings, and claims by persons whose employment has been terminated. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Consequently, the Company is unable to ascertain the ultimate aggregate amount of monetary liability, amounts which may be covered by insurance or recoverable from third parties, or the financial impact with respect to such matters as of September 30, 2026. The Company is not currently a party to any material legal proceedings, nor is the Company aware of any other pending or threatened litigation that would have a material adverse effect on the Company’s business, operating results, cash flows or financial condition should such litigation be resolved unfavorably. Based on the Company’s knowledge as of September 30, 2026, the Company believes that the final resolution of such matters pending at the time of this report, individually and in the aggregate, will not have a material adverse effect upon its condensed consolidated financial statements. Indemnification In the ordinary course of business, the Company may provide indemnification of varying scope and terms to customers, investors, directors and officers with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements, services to be provided by the Company, or from certain claims made by third parties. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is indeterminable. The Company has never paid a material claim, nor has the Company been sued in connection with these indemnification arrangements. As of September 30, 2026 and December 31, 2025, the Company has not accrued a liability for these indemnification arrangements because the likelihood of incurring a payment obligation, if any, in connection with these indemnification arrangements is not probable or reasonably estimable. Sales Taxes Contingency The Company conducts operations in many tax jurisdictions. While the Company is not currently under audit in any jurisdiction for non-income-based taxes, there is reasonable possibility that sales tax could be assessed on the Company’s operations in certain jurisdictions. As of September 30, 2026, the Company has recorded a $0.7 million sales tax contingency accrual within accounts payable and accrued expenses on the Company’s condensed consolidated balance sheets. This accrual reflects management’s estimate of losses that are probable and reasonably estimable. Management’s estimates consider the nature and location of the Company’s activities, potentially taxable revenue, and applicable tax laws and regulations. The Company evaluates these estimates as additional information becomes available and records adjustments as appropriate. The ultimate resolution of these matters could differ from the amounts accrued. As of September 30, 2026, the Company estimates that reasonably possible additional losses in excess of the amounts accrued are not material. Contractual Commitments During the nine months ended September 30, 2026, the Company amended an existing cloud-based hosting service contract with a third party provider. As of September 30, 2026, the Company has a remaining non-cancellable purchase commitment of $52.6 million, of which $23.0 million is payable within 12 months with the remainder payable thereafter, for services to be received through September 30, 2028.
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