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Fair Value Measurements
 9 Months Ended
Sep. 30, 2025
Text Block [Abstract]  
Fair Value Measurements

Note 4. Fair Value Measurements

Financial assets and liabilities are recorded at fair value.

The Company classifies fair value measurements using a three-level hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

•
Level 1—Quoted market prices (unadjusted) in active markets for identical assets and liabilities.
•
Level 2—Observable inputs other than quoted market prices included in Level 1, such as quoted market prices for markets that are not active 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 the fair value of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. These fair values are obtained from independent pricing services which utilize Level 1 and Level 2 inputs.

Financial Assets

The following table summarizes the Company's financial asset instruments measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024 (in thousands). Included within cash and cash equivalents on the unaudited condensed consolidated balance sheets, but excluded from the fair value hierarchy table, are cash deposits held at financial institutions.

 

 

 

September 30, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

2,078

 

 

$

—

 

 

$

—

 

 

$

2,078

 

Total cash equivalents

 

 

2,078

 

 

 

—

 

 

 

—

 

 

 

2,078

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government securities

 

 

—

 

 

 

78,770

 

 

 

—

 

 

 

78,770

 

U.S. government agencies

 

 

—

 

 

 

10,962

 

 

 

—

 

 

 

10,962

 

Total short-term investments

 

 

—

 

 

 

89,732

 

 

 

—

 

 

 

89,732

 

 

 

 

 

 

 

 

 

 

 

 

 

Total financial assets

 

$

2,078

 

 

$

89,732

 

 

$

—

 

 

$

91,810

 

 

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

1,215

 

 

$

—

 

 

$

—

 

 

$

1,215

 

U.S. government securities

 

 

—

 

 

 

17,464

 

 

 

—

 

 

 

17,464

 

Total cash equivalents

 

 

1,215

 

 

 

17,464

 

 

 

—

 

 

 

18,679

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government securities

 

 

—

 

 

 

119,629

 

 

 

—

 

 

 

119,629

 

Total short-term investments

 

 

—

 

 

 

119,629

 

 

 

—

 

 

 

119,629

 

 

 

 

 

 

 

 

 

 

 

 

 

Total financial assets

 

$

1,215

 

 

$

137,093

 

 

$

—

 

 

$

138,308

 

 

Warrant Liabilities

The following table summarizes the Company's warrant liabilities (see Note 8. Preferred Stock and Stockholders’ Equity) measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024 (in thousands) and was based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy.

 

 

September 30, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liabilities

 

$

—

 

 

$

—

 

 

$

21,948

 

 

$

21,948

 

 

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liabilities

 

$

—

 

 

$

—

 

 

$

44,865

 

 

$

44,865

 

The following table provides a roll-forward of the aggregate fair value of the warrant liability categorized with Level 3 inputs (in thousands):

 

 

Warrant Liability

 

 

 

 

 

Balance as of December 31, 2024

 

$

44,865

 

Change in fair value of warrant liabilities

 

 

(22,917

)

Balance as of September 30, 2025

 

$

21,948

 

The change in fair value of warrant liabilities of $22.9 million was recorded in the unaudited condensed consolidated statement of operations and comprehensive income (loss) for the nine months ended September 30, 2025.