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Fair value of financial assets and liabilities
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair value of financial assets and liabilities Fair value of financial assets and liabilities
The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy used to determine such fair values (in thousands):
Fair value measurements as of June 30, 2026
Level 1Level 2Level 3Total
Assets
Cash equivalents$8,350 $— $— $8,350 
Short-term investments5,079 — — 5,079 
$13,429 $— $— $13,429 
Liabilities
Warrant liability$— $— $68 $68 
$— $— $68 $68 
Fair value measurements as of December 31, 2025
Level 1Level 2Level 3Total
Assets
Cash equivalents$12,132 $— $— $12,132 
Short-term investments18,266 — — 18,266 
$30,398 $— $— $30,398 
Liabilities
  Warrant liability$— $— $186 $186 
$— $— $186 $186 
Level 3 liability valuations are based on unobservable inputs, which reflect the Company’s own assumptions incorporated in valuation techniques used to determine fair value; further discussion of these assumptions is set forth below. During the three and six months ended June 30, 2026 and 2025, there were no transfers in or out of Level 3.
Cash equivalents
Cash equivalents consist of money market funds and treasury bills and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. The Company considers all highly liquid interest-earning investments with a maturity of 90 days or less at the date of purchase to be cash equivalents. The fair values of these investments approximate their carrying values.
Valuation of short-term investments
U.S. Treasury bills and notes included in short-term investments were valued by the Company using quoted prices in active markets for identical securities, which represents a Level 1 measurement within the fair value hierarchy.
Valuation of warrant liability
The fair value of the warrant liability associated with the future tranches of the LSA borrowing at June 30, 2026 was determined using the Black-Scholes option pricing model. This represents a Level 3 measurement within the fair value hierarchy. The key inputs for the Black-Scholes valuation model were as follows:
June 30,December 31,
20262025
Exercise price$3.35 $3.35 
Stock price$1.73 $2.90 
Expected volatility41.5 %40.1 %
Expected term (in years)5.05.0
Risk-free interest rate4.2 %3.7 %
Expected dividend yield0 %0 %
Change in fair value of Level 3 liabilities
The following table presents a reconciliation of the warrant liability measured at fair value on a recurring basis as of June 30, 2026:
Warrant liability
Balance at December 31, 2025$186 
Net gain in revaluation of warrant liability(118)
Balance at June 30, 2026$68 
The change in fair value of the warrant liability is recognized in the other expense, net line of the condensed consolidated statements of operations.