Fair Value Measurements

12 Months Ended

Dec. 31, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

7. Fair value measurements

The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy:

		December 31, 2025
	Valuation Hierarchy	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
		(in thousands)
Financial assets:
Cash equivalents:
Money market funds	Level 1	$	63,000	$	-	$	-		$	63,000
U.S. government and agency securities	Level 2		6,528		-		-			6,528
Total cash equivalents			69,528		-		-			69,528
Short-term marketable securities:
U.S. government and agency securities	Level 2		65,082		29		-			65,111
Corporate debt securities	Level 2		1,402		-		(1	)		1,401
Total short-term marketable securities			66,484		29		(1	)		66,512
Total financial assets		$	136,012	$	29	$	(1	)	$	136,040
Financial liabilities:
Short-term financial liabilities:
Contingent consideration	Level 3	$	40,200	$	-	$	-		$	40,200
Total short-term financial liabilities			40,200		-		-			40,200
Long-term financial liabilities:
Contingent consideration	Level 3		83,518		-		-			83,518
Success payment liabilities	Level 3		19,238		-		-			19,238
Total long-term financial liabilities			102,756		-		-			102,756
Total financial liabilities		$	142,956	$	-	$	-		$	142,956

		December 31, 2024
	Valuation Hierarchy	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Estimated Fair Value
		(in thousands)
Financial assets:
Cash equivalents:
Money market funds	Level 1	$	66,641	$	-	$	-	$	66,641
U.S. government and agency securities	Level 2		25,237		5		-		25,242
Total cash equivalents			91,878		5		-		91,883
Short-term marketable securities:
U.S. government and agency securities	Level 2		19,137		7		-		19,144
Corporate debt securities	Level 2		5,785		2		-		5,787
Total short-term marketable securities			24,922		9		-		24,931
Total financial assets		$	116,800	$	14	$	-	$	116,814
Long-term financial liabilities:
Contingent consideration	Level 3		108,968		-		-		108,968
Success payment liabilities	Level 3		4,556		-		-		4,556
Total long-term financial liabilities			113,524		-		-		113,524
Total financial liabilities		$	113,524	$	-	$	-	$	113,524

The Company measures the fair value of money market funds based on quoted prices in active markets for identical assets or liabilities. The Level 2 marketable securities include U.S. government and agency securities and corporate debt securities and are valued based on either recent trades of securities in inactive markets or quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data.

There were no available-for-sale debt securities in a material loss position as of December 31, 2025 and 2024. The Company determined that there was no material change in the credit risk of the investments during the year ended December 31, 2025. As such, an allowance for credit losses has not been recognized. As of December 31, 2025, the Company does not intend to sell such securities, and it is not more-likely-than-not that the Company will be required to sell the securities prior to the recovery of the amortized cost basis.

As of December 31, 2025, all marketable securities had an effective maturity date of two years or less. Investments in securities with maturities of less than one year, or those for which management intends to use to fund current operations, are included in current assets and classified as available-for-sale. As of December 31, 2025 and 2024, the balance in accumulated other comprehensive loss included net unrealized gains (losses) related to the Company’s available-for-sale debt securities.

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities:

	Contingent Consideration			Cobalt Success Payment Liability		Harvard Success Payment Liability
	(in thousands)
Balance as of December 31, 2024	$	108,968		$	4,236	$	320
Changes in fair value – expense (gain)		1,864			105		(12	)
Balance as of March 31, 2025		110,832			4,341		308
Changes in fair value – expense		6,300			3,611		351
Balance as of June 30, 2025		117,132			7,952		659
Changes in fair value – expense (gain)		(1,991	)		4,822		293
Balance as of September 30, 2025		115,141			12,774		952
Changes in fair value – expense		8,577			5,101		411
Balance as of December 31, 2025	$	123,718		$	17,875	$	1,363

Contingent consideration

The Company utilizes significant estimates and assumptions it believes would be made by a market participant in determining the estimated fair value of the Cobalt Contingent Consideration at each balance sheet date. The fair value of the Cobalt Contingent Consideration was determined by calculating the probability-weighted estimated value of the pre-specified development milestone payments, which are payable in cash or stock based on the assessment of the likelihood and estimated timing that the milestones would be achieved and the applicable discount rates. The discount rate captures the credit risk associated with the payment of the contingent consideration when earned and due. The Company assesses these estimates on an ongoing basis as additional data impacting the assumptions are obtained.

The fair value of the Cobalt Contingent Consideration was calculated using the following unobservable inputs:

	December 31, 2025		December 31, 2024
Unobservable Input	Range	Weighted-Average	Range	Weighted-Average
Discount rates	10.6% – 12.1%	11.6%	11.3% – 12.3%	11.9%
Probability of milestone achievement	1.0% – 60.0%	27.4%	5.0% –55.0%	25.7%

The weighted-average unobservable inputs were calculated based on the relative value of the pre-specified development milestones. The estimated fair value of the Cobalt Contingent Consideration may change significantly as development progresses and additional data are obtained, impacting the assumptions regarding probabilities of successful achievement of the milestones used to estimate the fair value of the liability and the timing in which they are expected to be achieved. In evaluating the fair value assumptions, judgment is required to interpret the market data used to develop the estimates. The estimates of fair value may not be indicative of the amounts that could be realized in a current market exchange. Accordingly, the use of different market assumptions, inputs and/or different valuation techniques could result in materially different fair value estimates.

Success payments

The Company utilizes significant estimates and assumptions in determining the estimated fair value of the success payment liabilities and the associated expense or gain at each balance sheet date. The estimated fair value of the Cobalt Success Payment and Harvard Success Payment liabilities was determined using a Monte Carlo simulation methodology, which models the estimated fair value of the liability based on several key assumptions, including the expected volatility, remaining term, risk-free interest rate, estimated number and timing of valuation measurement dates on the basis of which payment may be triggered, and, for the Cobalt Success Payment, the Company’s market capitalization, and for the Harvard Success Payments, the per share fair value of the Company’s common stock. The potential Cobalt Success Payment is payable in cash or stock, and the potential Harvard Success Payments are payable in cash.

The fair values of the Cobalt Success Payments and Harvard Success Payments were calculated using the following unobservable inputs:

	December 31, 2025		December 31, 2024
Unobservable Input	Cobalt	Harvard	Cobalt	Harvard
Expected stock price volatility	77.5%	77.5%	75.0%	75.0%
Expected term (years)	13.1	5.2	14.1	6.2