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Fair Value Measurements
 9 Months Ended
Sep. 30, 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]  
Fair Value Measurements

5. FAIR VALUE MEASUREMENTS

The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows (in thousands):

 

 

Fair Value Measured as of

 

 

 

September 30, 2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and money market funds(1)

 

$

301,408

 

 

$

—

 

 

$

—

 

 

$

301,408

 

U.S. government and agency

 

 

—

 

 

 

50,914

 

 

 

—

 

 

 

50,914

 

Total cash, cash equivalents and restricted cash

 

$

301,408

 

 

$

50,914

 

 

$

—

 

 

$

352,322

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate notes and bonds

 

 

—

 

 

 

3,483

 

 

 

—

 

 

 

3,483

 

U.S. government and agency

 

 

—

 

 

 

732,850

 

 

 

—

 

 

 

732,850

 

Total short-term investments

 

$

—

 

 

$

736,333

 

 

$

—

 

 

$

736,333

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency

 

 

—

 

 

 

402,603

 

 

 

—

 

 

 

402,603

 

Total long-term investments

 

$

—

 

 

$

402,603

 

 

$

—

 

 

$

402,603

 

Total assets

 

$

301,408

 

 

$

1,189,850

 

 

$

—

 

 

$

1,491,258

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liabilities

 

$

86,299

 

 

$

—

 

 

$

1,681,933

 

 

$

1,768,232

 

 

 

Fair Value Measured as of

 

 

 

December 31, 2024

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and money market funds(1)

 

$

33,204

 

 

$

—

 

 

$

—

 

 

$

33,204

 

U.S. government and agency

 

 

—

 

 

 

23,636

 

 

 

—

 

 

 

23,636

 

Total cash, cash equivalents and restricted cash

 

$

33,204

 

 

$

23,636

 

 

$

—

 

 

$

56,840

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate notes and bonds

 

 

—

 

 

 

43,868

 

 

 

—

 

 

 

43,868

 

U.S. government and agency

 

 

—

 

 

 

242,028

 

 

 

—

 

 

 

242,028

 

Total short-term investments

 

$

—

 

 

$

285,896

 

 

$

—

 

 

$

285,896

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate notes and bonds

 

 

—

 

 

 

1,924

 

 

 

—

 

 

 

1,924

 

U.S. government and agency

 

 

—

 

 

 

21,621

 

 

 

—

 

 

 

21,621

 

Total long-term investments

 

$

—

 

 

$

23,545

 

 

$

—

 

 

$

23,545

 

Total assets

 

$

33,204

 

 

$

333,077

 

 

$

—

 

 

$

366,281

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liabilities

 

$

70,688

 

 

$

—

 

 

$

—

 

 

$

70,688

 

 

(1)
Includes money market funds associated with the Company’s overnight investment sweep account and cash collateralizing the Company’s financial guarantees and certain other obligations.

The Company’s warrant liabilities are comprised of the public warrants and Series A private warrants. The Series A prefunded warrants were fully exercised as of September 30, 2025. Refer to Note 11 for further details. Transfers to/from Levels 1, 2, and 3 are recognized at the beginning of the reporting period. There were no transfers between levels during the current period.

The fair value of the Series A prefunded warrants and Series A private warrants (together, the “Series A Warrants”) was determined using Level 3 inputs. Management determined the fair value of the Series A Warrants using unobservable inputs in the Black-Scholes option-pricing model. Inherent in the valuation were assumptions related to the expected stock-price volatility, expected term, risk-free interest rate, and dividend yield. The Company estimated the expected volatility based on the Company’s historical and implied stock price volatility. The expected term was assumed to be equivalent to the Series A Warrants’ remaining contractual term. The risk-free interest rate was estimated using

the yield on actively traded non-inflation-indexed U.S. treasury securities with contract maturities equal to the expected term. The dividend yield was based on the historical rate, which the Company anticipates remaining at zero.

The assumptions used to estimate the fair value of the Series A Warrants during the period are as follows:

 

 

 

September 30, 2025

 

 

July 9, 2025

 

 

Risk-free interest rate

 

 

3.87

%

 

 

4.07

%

 

Expected term (in years)

 

6.78

 

 

 

7.00

 

 

Expected volatility

 

 

95.00

%

 

 

95.00

%

 

Dividend yield

 

 

—

%

 

 

—

%

 

Privately-Held Securities

During fiscal year 2025, the Company entered into certain agreements (“Investment Agreements”) to purchase convertible debt securities and SAFE investments of privately-held companies (each, an “Investee”). As of September 30, 2025, the total amount of privately-held securities included in other noncurrent assets on the condensed consolidated balance sheet was $28.0 million, including $23.0 million of convertible debt securities classified as available-for-sale investments and $5.0 million of SAFE investments. The Company did not record any material adjustments or impairments for the privately-held securities held as of September 30, 2025. The fair value of convertible debt securities is based on unobservable inputs and is classified as Level 3 in the hierarchy.

In connection with the Investment Agreements, each Investee and the Company entered into a commercial contract for access to the Company’s products and services. The Company assessed the commercial contracts under the guidance within ASC 606, Revenue from Contracts with Customers, as well as the commercial substance of the arrangement considering the customer’s ability and intention to pay as well as the Company’s obligation to perform under the contract. Based on its assessment, the Company concluded the commercial contracts are within the scope of ASC 606 and the Company will apply the principles within ASC 606 to measure and recognize revenue. During the three and nine months ended September 30, 2025, the Company recognized $0.9 million of revenue from the commercial contracts.