Fair Value Measurements

9 Months Ended

Sep. 30, 2025

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 September 30, 2025 and December 31, 2024 (in thousands) in accordance with the ASC 820 hierarchy.

	Fair Value Measurements as of September 30, 2025
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	70,239	$	—	$	—	$	70,239

	Fair Value Measurements as of December 31, 2024
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	60,819	$	—	$	—	$	60,819

Derivative Tranche Liability

The following tables present the derivative tranche liability (see Note 6) carried at fair value on a recurring basis as of September 30, 2025 (in thousands) 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. There was no derivative tranche liability as of December 31, 2024.

	Fair Value Measurements as of September 30, 2025
	Level 1		Level 2		Level 3		Total
Liabilities
Derivative tranche liability	$	—	$	—	$	16,730	$	16,730

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 51.6% - 149.7% as of September 30, 2025. The volatility utilized in the Monte Carlo option-pricing model was determined by using the median. The following table presents the assumptions used to determine the fair value of the derivative tranche liability for the issuance date, September 11, 2025, and as of September 30, 2025:

	September 11, 2025			September 30, 2025
Expected volatility	73.0		%	73.0		%
Risk-free interest rate	3.50		%	3.60		%
Expected term (in years)	1.33			1.28
Probability of achieving specified conditions	25.0		%	25.0		%
Discount rate	3.53		%	3.59		%
Share price	$	2.78		$	3.00

The following table provides a roll-forward of the aggregate fair value of the derivative tranche liability categorized with Level 3 inputs (in thousands):

	Derivative Tranche Liability
Balance as of December 31, 2024	$	—
Issuance	14,930
Change in fair value	1,800
Balance as of September 30, 2025	$	16,730

The change in fair value of tranche liability was primarily due to the increase in the price per share of the Company’s common stock from the issuance date to September 30, 2025.

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.