XML 21 R8.htm IDEA: XBRL DOCUMENT v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Financial Assets
The following tables present the financial asset instruments carried at fair value on a recurring basis as of March 31, 2026 and December 31, 2025 (in thousands) in accordance with the ASC 820 hierarchy.
Fair Value Measurements as of March 31, 2026
Level 1Level 2Level 3Total
Assets
Cash equivalents$91,832 $— $— $91,832 
Fair Value Measurements as of December 31, 2025
Level 1Level 2Level 3Total
Assets
Cash equivalents$106,934 $— $— $106,934 
Derivative Tranche Liability
The following tables present the derivative tranche liability (see Note 6) carried at fair value on a recurring basis as of March 31, 2026 and December 31, 2025 (in thousands) and in accordance with the ASC 820 hierarchy and was based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy.
Fair Value Measurements as of March 31, 2026
Level 1Level 2Level 3Total
Liabilities
Derivative tranche liability$— $— $50,948 $50,948 

Fair Value Measurements as of December 31, 2025
Level 1Level 2Level 3Total
Liabilities
Derivative tranche liability$— $— $44,760 $44,760 
The derivative tranche liability is valued using a Monte Carlo simulation model which uses certain assumptions, including annual volatility. The range of volatilities of comparable public companies utilized was 43.5% - 125.8% as of March 31, 2026. The volatility utilized in the Monte Carlo option-pricing model was determined using the 75th percentile. The following table presents the assumptions used to determine the fair value of the derivative tranche liability as of March 31, 2026 and as of December 31, 2025:
March 31,
2026		December 31,
2025
Expected volatility86.0 %96.0 %
Risk-free interest rate3.65 %3.42 %
Expected term (in years)0.531.03
Probability of achieving specified conditions45.0 %25.0 %
Share price$4.41 $6.13 
The following table provides a roll-forward of the aggregate fair value of the derivative tranche liability categorized with Level 3 inputs for the three months ended March 31, 2026 (in thousands):
Derivative Tranche Liability
Balance as of December 31, 2025$44,760 
Change in fair value6,188 
Balance as of March 31, 2026$50,948 
The carrying amounts reflected in the condensed consolidated balance sheet for prepaid expenses and other current assets, accounts payable and accrued expenses and other liabilities are shown at their historical values, which approximate their fair values.