XML 53 R16.htm IDEA: XBRL DOCUMENT v3.26.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements
4.
Fair Value Measurements

The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs, such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

As of December 31, 2025 and 2024, assets measured at fair value on a recurring basis were as follows (in thousands):

 

 

December 31, 2025

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

29,379

 

 

$

29,379

 

 

$

—

 

 

$

—

 

U.S. Treasury bonds

 

 

4,999

 

 

 

—

 

 

 

4,999

 

 

 

—

 

Total cash equivalents

 

$

34,378

 

 

$

29,379

 

 

$

4,999

 

 

$

—

 

Short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

Scilex Holding Company common stock

 

$

30

 

 

$

30

 

 

$

—

 

 

$

—

 

Sorrento Therapeutics, Inc. common stock

 

 

2

 

 

 

2

 

 

 

—

 

 

 

—

 

U.S. Treasury bonds

 

 

62,944

 

 

 

—

 

 

 

62,944

 

 

 

—

 

Total short-term investments

 

$

62,976

 

 

$

32

 

 

$

62,944

 

 

$

—

 

 

 

 

December 31, 2024

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

Money market mutual funds

 

$

43,426

 

 

$

43,426

 

 

$

—

 

 

$

—

 

Total cash equivalents

 

$

43,426

 

 

$

43,426

 

 

$

—

 

 

$

—

 

Short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

Scilex Holding Company common stock

 

$

37

 

 

$

37

 

 

$

—

 

 

$

—

 

Sorrento Therapeutics, Inc. common stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

U.S. Treasury bonds

 

 

11,985

 

 

 

—

 

 

 

11,985

 

 

 

—

 

Total short-term investments

 

$

12,022

 

 

$

37

 

 

$

11,985

 

 

$

—

 

 

Cash Equivalents

There were no transfers in or out of Level 3 during the years ended December 31, 2025 and 2024.

The Company determines the fair value of its money market mutual funds and treasury bonds based upon quoted prices in active markets for identical and similar assets, as applicable. At December 31, 2025 and 2024, the Company did not hold any investments, within cash equivalents, that were in a material unrealized gain or loss position.