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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

Schedule of Fair Value Financial Assets Measured on a Recurring Basis

The following tables present the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of the periods presented:

			September 30, 2025
(in thousands)			(Level 1)						(Level 2)						(Level 3)						Total
Assets:
Money market funds (1)			$	15,087					$	—					$	—					$	15,087
U.S. Treasuries			11,889						—						—						11,889
Total assets			$	26,976					$	—					$	—					$	26,976
Liabilities:
Debt derivative liabilities			$	—					$	—					$	1,868					$	1,868

__________

(1)Money market funds are included in Cash and cash equivalents on the Condensed Consolidated Balance Sheet.

			December 31, 2024
(in thousands)			(Level 1)						(Level 2)						(Level 3)						Total
Assets:
Money market funds (1)			$	19,399					$	—					$	—					$	19,399
U.S. Treasuries			5,928						—						—						5,928
Total assets			$	25,327					$	—					$	—					$	25,327
Liabilities:
Debt derivative liabilities			$	—					$	—					$	2,400					$	2,400

__________

(1)Money market funds are included in Cash and cash equivalents on the Condensed Consolidated Balance Sheet.

Schedule of Fair Value Instruments Classified Level 3

The changes in Level 3 liabilities measured at fair value on a recurring basis for the periods indicated were as follows:

			Three Months Ended September 30,
(in thousands)			2025						2024
Balance at June 30, 2025 and 2024			$	2,078					$	2,458
Change in fair value included in net income (loss)			(210)						(13)
Balance at September 30, 2025 and 2024			$	1,868					$	2,445

			Nine Months Ended September 30,
(in thousands)			2025						2024
Balance at December 31, 2024 and 2023			$	2,400					$	2,987
Change in fair value included in net loss			(531)						(542)
Balance at September 30, 2025 and 2024			$	1,868					$	2,445

Schedule of Significant Inputs in Liability Valuation

The significant inputs that are included in the valuation of the debt derivative liability - first tranche as of the periods presented include:

Input						September 30, 2025									December 31, 2024
Remaining term						1.8 years									2.5 years
Maturity date						June 30, 2027									June 30, 2027
Coupon rate						9.5% - 13.0%									9.5% - 13.0%
Revenue participation payments						Maximum each year									Maximum each year
Discount rate						11.29%			(1)						12.22%			(1)
Probability of mandatory prepayment event						15.0%			(1)						15.0%			(1)
Estimated timing of mandatory prepayment event						March 31, 2026			(1)						March 31, 2026			(1)
Probability of optional prepayment event						5.0%			(1)						5.0%			(1)
Estimated timing of optional prepayment event						December 31, 2025			(1)						December 31, 2025			(1)
Probability of note held-to-maturity (2)						80.0%			(1)						80.0%			(1)

__________

(1)Represents a significant unobservable input.

(2)See maturity date in table.

The significant inputs that are included in the valuation of the debt derivative liability - second tranche as of the periods presented include:

Input						September 30, 2025									December 31, 2024
Remaining term						2.8 years									3.5 years
Maturity date						June 30, 2028									June 30, 2028
Coupon rate						9.5% - 13.0%									9.5% - 13.0%
Revenue participation payments						Maximum each year									Maximum each year
Discount rate						14.45%			(1)						15.48%			(1)
Probability of mandatory prepayment event						15.0%			(1)						15.0%			(1)
Estimated timing of mandatory prepayment event						March 31, 2026			(1)						March 31, 2026			(1)
Probability of optional prepayment event						5.0%			(1)						5.0%			(1)
Estimated timing of optional prepayment event						December 31, 2025			(1)						December 31, 2025			(1)
Probability of held-to-maturity (2)						80.0%			(1)						80.0%			(1)

__________

(1)Represents a significant unobservable input.

(2)See maturity date in table.

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 103
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-103

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

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Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

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-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

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Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-3

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

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