Fair Value Measurements

3 Months Ended

Mar. 31, 2026

Fair Value Disclosures [Abstract]

Fair Value Measurements

3. Fair Value Measurements

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy (in thousands):

	As of March 31, 2026
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents
Money market funds	$	319,115	$	—	$	—	$	319,115
Total cash equivalents		319,115		—		—		319,115
Marketable securities
Government securities		—		44,960		—		44,960
Total marketable securities		—		44,960		—		44,960
Restricted cash
Certificate of deposit		—		776		—		776
Total restricted cash		—		776		—		776
Total assets	$	319,115	$	45,736	$	—	$	364,851
Liabilities
Derivative liability – warrants		—		1,107		36		1,143
Total liabilities	$	—	$	1,107	$	36	$	1,143

	As of December 31, 2025
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents
Money market funds	$	249,393	$	—	$	—	$	249,393
Total cash equivalents		249,393		—		—		249,393
Marketable securities
Government securities		—		45,040		—		45,040
Total marketable securities		—		45,040		—		45,040
Restricted cash
Certificate of deposit		—		770		—		770
Total restricted cash		—		770		—		770
Total assets	$	249,393	$	45,810	$	—	$	295,203
Liabilities
Derivative liability – warrants		—		1,305		38		1,343
Total liabilities	$	—	$	1,305	$	38	$	1,343

Marketable Securities

The Company accounts for marketable securities held as “available-for-sale” in accordance with ASC 320, Investments-Debt Securities. The Company classifies these investments as current assets and carries them at fair value.

The fair value of the Company's marketable securities classified within Level 2 is based upon observable inputs that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications.

Certificate of Deposit

The Company’s certificates of deposit are Level 2 instruments. The fair value of such instruments is estimated based on valuations obtained from third-party pricing services that utilize industry standard valuation models, including both income-based and market-based approaches, for which all significant inputs are observable either directly or indirectly. These inputs include interest rate curves, foreign exchange rates, and credit ratings.

Warrants

The Company has issued warrants to investors in connection with prior equity financings. These warrants are required to be measured at fair value and presented as liabilities in the accompanying condensed balance sheets. As of March 31, 2026, the warrant liabilities include (i) nominal exercise price warrants, which are marked-to-market based on the period-end closing price of the Company's common stock and (ii) the New Series B Warrant, which has an exercise price of $41.83 and is valued using the Black-Scholes option pricing model, which includes unobservable inputs. The nominal exercise price warrants are classified within Level 2 of the fair value hierarchy. The New Series B Warrant is classified within Level 3. See Note 8 Equity for additional information.

For the three months ended March 31, 2026, the change in the fair value of the warrant liabilities resulted in the recording of a gain on change in fair value of derivative instruments of $0.2 million in the accompanying condensed statements of operations, consisting of $0.2 million related to the nominal exercise price warrants classified within Level 2 and less than $0.01 million related to the New Series B Warrant classified within Level 3. For the three months ended March 31, 2025, the change in the fair value of the warrant liabilities resulted in the recording of a gain of $0.8 million in the accompanying condensed statements of operations. During the three months ended March 31, 2025, all warrant liabilities were classified within Level 3 of the fair value hierarchy. During the year ended December 31, 2025, the Company transferred the nominal exercise price warrants from Level 3 to Level 2 within the fair value hierarchy as the warrants became mark-to-market instruments based on the period-end closing price of the Company's common stock following the IPO. Transfers between levels are recognized at the beginning of the reporting period in which the transfer occurs.

The following are the assumptions used in the Black-Scholes valuation model in order to determine the fair value of the warrant liabilities as of March 31, 2026 and December 31, 2025:

	March 31, 2026			December 31, 2025
Term		2.41			2.66
Volatility		92.70	%		103.4	%
Exercise price	$	41.83		$	41.83
Risk-free rate		3.79	%		3.52	%

Changes in one or more significant unobservable inputs used in the valuation may result in a significantly higher or lower fair value measurement at the reporting dates. The change in the Level 3 derivative liabilities for the three months ended March 31, 2026 was (in thousands):

	Level 3 Warrant Liabilities
Balance December 31, 2025	$	38
Gain due to change in fair value		(2	)
Balance March 31, 2026	$	36

The change in the warrant liabilities for the three months ended March 31, 2026 was (in thousands):

	Warrants
Balance, December 31, 2025	$	1,343
Gain due to change in fair value		(200	)
Balance, March 31, 2026	$	1,143

During the three months ended March 31, 2026, there were no transfers of instruments between Level 1, 2 and 3 in the fair value hierarchy.

There are uncertainties on the fair value measurement of the instruments classified under Level 3 due to the use of unobservable inputs and interrelationships between these unobservable inputs, which could result in higher or lower fair value measurements.