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Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

3. Fair Value Measurements

The following table presents information about our financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values (in thousands):

 

 

 

June 30, 2025

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

22,670

 

 

$

22,670

 

 

$

—

 

 

$

—

 

Total assets measured at fair value

 

$

22,670

 

 

$

22,670

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Common stock warrants

 

$

13,249

 

 

$

—

 

 

$

—

 

 

$

13,249

 

Total liabilities measured at fair value

 

$

13,249

 

 

$

—

 

 

$

—

 

 

$

13,249

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

46,134

 

 

$

46,134

 

 

$

—

 

 

$

—

 

Total assets measured at fair value

 

$

46,134

 

 

$

46,134

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

Money market funds with maturities of 90 days or less at the date of purchase are included within cash and cash equivalents in the accompanying consolidated balance sheets and are recognized at fair value.

Common stock warrants

On April 24, 2025, in connection with the EIB Loan Facility, the Company issued 5,623,664 Tranche A warrants to purchase shares of the Company’s common stock at an exercise price of $0.89 per share. On June 24, 2025, in connection with the EIB Loan Facility, the Company issued 4,221,868 Tranche B warrants to purchase shares of the Company’s common stock at an exercise price of

$1.32 per share. See Note 8, “Term Loan Facility” in this Quarterly Report on Form 10-Q for additional detail on the EIB Loan Facility and warrants issued.

The EIB warrants met the criteria for liability classification and are initially recognized on the date of issuance and subsequently measured at each balance sheet date at fair value through “Other income (expense)” on the consolidated statements of operations and comprehensive loss.

The fair value of the Tranche A and Tranche B warrants was determined based on the Black-Scholes option-pricing model and classified within Level 3 of the fair value hierarchy on the date of issuance. The expected volatility input used in the model was deemed unobservable (Level 3) and was determined based on share price data of the Company and comparable companies for a term equal to the remaining contractual term of the warrants. Other required inputs used in the model were considered observable (Level 1). Significant increases (decreases) in these inputs could result in a significantly lower or higher fair value measurement. The following table shows the Black-Scholes option-pricing model inputs used to calculate the fair value of the warrants at issuance date.

 

Tranche A

 

 

Tranche B

 

Share price of common stock

 

$

0.92

 

 

$

1.39

 

Expected volatility

 

 

83.0

%

 

 

84.0

%

Risk-free interest rate

 

 

4.7

%

 

 

4.8

%

Expected term (in years)

 

 

20.0

 

 

 

20.0

 

Expected dividend yield

 

 

0

%

 

 

0

%

The following table shows the Black-Scholes option-pricing model inputs used to calculate the fair value of the warrants at June 30, 2025.

 

Tranche A

 

 

Tranche B

 

Share price of common stock

 

$

1.39

 

 

$

1.39

 

Expected volatility

 

 

84.0

%

 

 

84.0

%

Risk-free interest rate

 

 

4.8

%

 

 

4.8

%

Expected term (in years)

 

 

19.8

 

 

 

20.0

 

Expected dividend yield

 

 

0

%

 

 

0

%

The following table shows a reconciliation of the beginning and ending balances for Level 3 financial liabilities measured at fair value on a recurring basis for the six months ended June 30, 2025:

 

Six Months Ended

 

 

 

 

June 30, 2025

 

 

Level 3 financial liabilities, beginning of period

 

$

—

 

 

Issuance of EIB common stock warrants

 

 

10,662

 

 

Change in fair value of EIB common stock warrants

 

 

2,587

 

 

Level 3 financial liabilities, end of period

 

$

13,249

 

 

There were no transfers among Level 1, Level 2 or Level 3 categories in the six months ended June 30, 2025 and the year ended December 31, 2024.