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Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements 
The Company measures and reports certain financial and non-financial assets and liabilities on a fair value basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). GAAP specifies a three-level hierarchy that is used when measuring and disclosing fair value. The fair value hierarchy gives the highest priority to quoted prices available in active markets (i.e., observable inputs) and the lowest priority to data lacking transparency (i.e., unobservable inputs). An instrument’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. The following is a description of the three hierarchy levels.
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Active markets are considered to be those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in inactive markets.
Level 3: Unobservable inputs are not corroborated by market data. This category is comprised of financial and non-financial assets and liabilities whose fair value is estimated based on internally developed models or methodologies using significant inputs that are generally less readily observable from objective sources.
Transfers into or out of any hierarchy level are recognized at the end of the reporting period in which the transfers occurred. There were no transfers between any levels for recurring fair value measurements during the years ended December 31, 2025 and 2024.
The following information is provided to help readers gain an understanding of the relationship between amounts reported in the accompanying consolidated financial statements and the related market or fair value. The disclosures include financial instruments and derivative financial instruments, other than investment in affiliates.
Following are descriptions of the valuation methodologies used to measure material assets and liabilities at fair value and details of the valuation models, key inputs to those models and significant assumptions utilized.
Cash and cash equivalents
The carrying amounts reported in the balance sheet for cash, cash equivalents, and restricted cash approximate those assets’ fair values.
Securities available for sale
Certain common equity securities are reported at fair value utilizing Level 1 inputs (exchange quoted prices).
Finance Receivables
The fair values of finance receivables are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the finance receivables. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. These receivables are classified as Level 3. Finance receivables are not measured at fair value on a recurring basis, but estimates of fair value are reflected below.
Marketable Investments
If active market prices are available, fair value measurement is based on quoted active market prices and, accordingly, these securities would be classified as Level 1. If active market prices are not available, fair value measurement is based on observable inputs other than quoted prices included within Level 1, such as prices for similar assets or broker quotes utilizing observable inputs, and accordingly these securities would be classified as Level 2. If market prices are not available and there are no observable inputs, then fair value would be estimated by using valuation models including discounted cash flow methodologies, commonly used option-pricing models and broker quotes. Such securities would be classified as Level 3, if the valuation models and broker quotes are based on inputs that are unobservable in the market. If fair value is based on broker quotes, the Company checks the validity of received prices based on comparison to prices of other similar assets and market data such as relevant benchmark indices. Available-for-sale securities are measured at fair value on a recurring basis, while securities with no readily available fair market value are not, but estimates of fair value are reflected below.
Derivative Instruments
For exchange-traded derivatives, fair value is based on quoted market prices, and accordingly, would be classified as Level 1. For non-exchange traded derivatives, fair value is based on option pricing models and are classified as Level 3.
The Company used a foreign currency forward contract to manage the impact of fluctuations in foreign currency denominated cash flows expected to be received from one of its royalty finance receivables denominated in a foreign currency. During April 2025, the Company sold the related royalty finance receivable as part of the Transaction (See Note 3). As a result, the Company terminated its foreign currency forward contract and received a cash payment of $1.6 million. The foreign currency forward contract was not designated as a hedging instrument, and changes in fair value were recognized in earnings. The foreign currency forward contract was recorded in other non-current assets in the consolidated balance sheets as of December 31, 2024 and totaled $2.5 million. The Company recognized a loss of $0.9 million and a gain of $1.5 million due to changes in fair value related to its foreign currency forward contract for the years ended December 31, 2025 and December 31, 2024, respectively.
The following table presents financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 (in thousands):
Total
Carrying
Value in
Consolidated
Balance
Sheets		Quoted Prices
in Active
Markets for
Identical
Assets
or Liabilities
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Financial Assets
Warrant assets$5,913 $— $— $5,913 
Marketable investments$184 $184 $— $— 
Foreign currency forward contract$— $— $— $— 
The following table presents financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 (in thousands):
Total
Carrying
Value in
Consolidated
Balance
Sheets		Quoted Prices
in Active
Markets for
Identical
Assets
or Liabilities
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Financial Assets
Warrant assets$4,366 $— $— $4,366 
Marketable investments$580 $559 $— $21 
Foreign currency forward contract$2,475 $— $— $2,475 
The changes on the value of the warrant assets during the years ended December 31, 2025 and 2024 were as follows (in thousands):
Fair Value - January 1, 2024
$1,759 
Issuance1,241 
Exercised(985)
Increase in fair value2,406 
Loss on foreign currency transactions(55)
Fair Value - December 31, 2024
4,366 
Issuance537 
Exercised— 
Increase in fair value775 
Gain on foreign currency transactions235 
Fair Value - December 31, 2025
$5,913 
The Company holds warrants issued to the Company in conjunction with certain term loan investments. These warrants meet the definition of a derivative and are included in the consolidated balance sheets. The fair values for warrants outstanding, which do not have a readily determinable value, are measured using the Black-Scholes option pricing model. The following ranges of assumptions were used in the models to determine fair value:

December 31, 2025December 31, 2024
Dividend rate range— — 
Risk-free rate range
3.5% to 4.0%
4.2% to 4.5%
Expected life (years) range
0.87 to 7.01
1.9 to 6.9
Expected volatility range
60.1% to 151.0%
56.0% to 177.7%
The warrant assets are valued using a market approach and include significant unobservable inputs such as risk-free rate, expected life, and expected volatility. For the year ended December 31, 2025, the risk-free rate range weighted average was 3.7%, and had a median of 3.7%. For the year ended December 31, 2024, the risk-free rate range weighted average was 4.4%, and had a median of 4.4%. For the year ended December 31, 2025, the expected life range weighted average was 4.9 years, and had a median of 4.7 years. For the year ended December 31, 2024, the expected life range weighted average was 5.8 years, and had a median of 4.3 years. For the year ended December 31, 2025, the expected volatility range weighted average was 67.0%, and had a median of 86.0%. For the year ended December 31, 2024, the expected volatility range weighted average 65.6%, and median of 104.3%.
As of December 31, 2025, the Company had three royalty investments, Best, Ideal, and Flowonix, that were deemed to be impaired based on reductions in carrying value. As of December 31, 2024, the Company had one term loan, BIOLASE, that was deemed to be impaired based on reductions in carrying value. As of December 31, 2024, the Company had three royalties, Best, Ideal, and Flowonix, that were deemed to be impaired based on reductions in carrying value. The following table presents these royalty and the loans measured at amortized cost using the effective interest method, which approximates fair value, on a nonrecurring basis (in thousands):
Total
Carrying
Value in
Consolidated
Balance
Sheets		Quoted Prices
in Active
Markets for
Identical
Assets
or Liabilities
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
December 31, 2025
$9,916 $— $— $9,916 
December 31, 2024
$14,830 $— $— $14,830 
 
There were no liabilities measured at fair value on a nonrecurring basis as of December 31, 2025 or 2024.
The following information is provided to help readers gain an understanding of the relationship between amounts reported in the accompanying consolidated financial statements and the related market or fair value. The disclosures include financial instruments and derivative financial instruments measured at fair value on a recurring and non-recurring basis.
The following table presents the fair value of financial assets as of December 31, 2025 (in thousands):
Carrying ValueFair ValueLevel 1Level 2Level 3
Financial Assets
Finance receivables, net$218,627 $219,681 $— $— $219,681 
Marketable investments184 184 184 — — 
Warrant assets5,913 5,913 — — 5,913 
Foreign currency forward contract— — — — — 
The following table presents the fair value of financial assets and liabilities as of year ended December 31, 2024 (in thousands):
Carrying ValueFair ValueLevel 1Level 2Level 3
Financial Assets
Finance receivables, net$277,760 $277,760 $— $— $277,760 
Marketable investments580 580 559 — 21 
Warrant assets4,366 4,366 — — 4,366 
Foreign currency forward contract2,475 2,475 — — 2,475