XML 22 R14.htm IDEA: XBRL DOCUMENT v3.26.1
Financial Instruments
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Financial Instruments

Note 3. Financial Instruments

The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy:

 

 

 

December 31, 2025

 

 

 

Adjusted Cost

 

 

Unrealized Gain

 

 

Unrealized Losses

 

 

Fair Value

 

 

Cash and Cash Equivalent

 

 

Marketable Securities

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

16,690

 

 

$

—

 

 

$

—

 

 

$

16,690

 

 

$

16,690

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

 

16,977

 

 

 

—

 

 

 

—

 

 

 

16,977

 

 

 

16,977

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government securities

 

 

20,818

 

 

 

3

 

 

 

(2

)

 

 

20,819

 

 

 

3,984

 

 

 

16,835

 

U.S. Treasury securities

 

 

13,460

 

 

 

—

 

 

 

(2

)

 

 

13,458

 

 

 

7,989

 

 

 

5,469

 

Commercial paper

 

 

45,480

 

 

 

2

 

 

 

(4

)

 

 

45,478

 

 

 

26,651

 

 

 

18,827

 

Corporate bonds

 

 

8,478

 

 

 

1

 

 

 

(2

)

 

 

8,477

 

 

 

—

 

 

 

8,477

 

Subtotal

 

 

88,236

 

 

 

6

 

 

 

(10

)

 

 

88,232

 

 

 

38,624

 

 

 

49,608

 

Total assets

 

$

121,903

 

 

$

6

 

 

$

(10

)

 

$

121,899

 

 

$

72,291

 

 

$

49,608

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible notes

 

 

—

 

 

 

—

 

 

 

—

 

 

 

100,958

 

 

 

—

 

 

 

—

 

Warrant liabilities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

29,711

 

 

 

—

 

 

 

—

 

Total liabilities

 

$

—

 

 

$

—

 

 

$

—

 

 

 

130,669

 

 

$

—

 

 

$

—

 

 

 

December 31, 2024

 

 

 

Adjusted Cost

 

 

Unrealized Gain

 

 

Unrealized Losses

 

 

Fair Value

 

 

Cash and Cash Equivalent

 

 

Marketable Securities

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

14,237

 

 

$

—

 

 

$

—

 

 

$

14,237

 

 

$

14,237

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

 

10,645

 

 

 

—

 

 

 

—

 

 

 

10,645

 

 

 

10,645

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government securities

 

 

17,492

 

 

 

14

 

 

 

(2

)

 

 

17,504

 

 

 

—

 

 

 

17,504

 

U.S. Treasury securities

 

 

10,957

 

 

 

6

 

 

 

-

 

 

 

10,963

 

 

 

2,000

 

 

 

8,963

 

Commercial paper

 

 

12,711

 

 

 

9

 

 

 

(4

)

 

 

12,716

 

 

 

1,982

 

 

 

10,734

 

Corporate bonds

 

 

45,918

 

 

 

31

 

 

 

(7

)

 

 

45,942

 

 

 

—

 

 

 

45,942

 

Subtotal

 

 

87,078

 

 

 

60

 

 

 

(13

)

 

 

87,125

 

 

 

3,982

 

 

 

83,143

 

Total assets

 

$

111,960

 

 

$

60

 

 

$

(13

)

 

$

112,007

 

 

$

28,864

 

 

$

83,143

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liabilities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,258

 

 

 

—

 

 

 

—

 

Total liabilities

 

$

—

 

 

$

—

 

 

$

—

 

 

$

8,258

 

 

$

—

 

 

$

—

 

 

Warrant liabilities

The fair value of the private placement warrants and Series A Warrants is based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy. In determining the fair value of the warrant liabilities, the Company used the Black-Scholes option-pricing model to estimate the fair value using unobservable inputs including the expected term, expected volatility, risk-free interest rate, and dividend yield.

The following table presents a summary of the changes in the fair value of the Company’s Level 3 financial instruments (in thousands):

 

 

 

December 31, 2025

 

 

December 31, 2024

 

Fair value, beginning balance

 

$

8,258

 

 

$

6,772

 

Change in the fair value of Series A warrants included in other income
   (expense), net

 

 

21,479

 

 

 

1,500

 

Change in the fair value of private placement warrants included
   in other income (expense), net

 

 

(26

)

 

 

(14

)

Fair value, closing balance

 

$

29,711

 

 

$

8,258

 

 

The key inputs into the Black-Scholes option pricing model for the private warrants were as follows for the relevant periods:

 

 

 

December 31, 2025

 

 

December 31, 2024

 

Expected term (years)

 

 

0.2

 

 

 

1.2

 

Expected volatility

 

 

101.0

%

 

 

90.0

%

Risk-free interest rate

 

 

3.67

%

 

 

4.21

%

Dividend yield

 

 

0

%

 

 

0

%

Exercise Price

 

$

57.50

 

 

$

57.50

 

 

The key inputs into the Black-Scholes option pricing model for the Series A warrants were as follows for the relevant periods:

 

 

 

December 31, 2025

 

 

December 31, 2024

 

Expected term (years)

 

 

2.0

 

 

 

3.0

 

Expected volatility

 

 

101.0

%

 

 

90.0

%

Risk-free interest rate

 

 

3.48

%

 

 

4.23

%

Dividend yield

 

 

0

%

 

 

0

%

Exercise Price

 

$

5.00

 

 

$

5.00

 

 

Convertible notes

As of December 31, 2025, the fair value of the Company’s convertible notes was $101.0 million. The Company measures the fair value of its convertible notes for disclosure purposes. The fair value was determined based on the Lattice model and has been classified as Level 3 in the fair value hierarchy. See Note 10 “Financing transactions” for information regarding the Company’s convertible notes as of December 31, 2025. The key inputs into the Lattice model for the Convertible notes were as follows:

 

 

 

December 31, 2025

 

Expected term (years)

 

 

6.9

 

Expected volatility

 

 

87.7

%

Risk-free interest rate

 

 

3.90

%

Conversion rate

 

$

15.87

 

Share price

 

$

13.28