Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2025

Basis of Presentation and Summary of Significant Accounting Policies

BASIS OF pRESENTATION AND Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codification and as amended by Accounting Standards Updates of FASB. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended December 31, 2024, which are included in the Company’s 2024 Annual Report on Form 10-K filed with the SEC on March 6, 2025 (the “2024 Annual Report”). The Company’s significant accounting policies are disclosed in the audited consolidated financial statements for the periods ended December 31, 2024 and 2023, included in the 2024 Annual Report. Since the date of those financial statements, there have been no changes to the Company's significant accounting policies.

The preparation of financial statements in conformity with U.S. GAAP requires management to make a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of expenses during the reporting periods. Actual results could differ from those estimates under different assumptions or conditions.

Intercompany balances and transactions, and any unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the unaudited condensed consolidated financial statements.

Foreign Currency

Prior to April 1, 2024, the Company’s functional currency was the Canadian dollar (“CAD”). Translation gains and losses from the application of the U.S. dollar (“USD”) as the reporting currency during the period that the Canadian dollar was the functional currency were included as part of cumulative currency translation adjustment, which is reported as a component of shareholders’ equity as accumulated other comprehensive income.

Following the Company’s voluntary delisting from Cboe Canada in April 2024, the Company reassessed its functional currency and determined that, as of April 1, 2024, its functional currency had changed from the CAD to the USD.

For periods commencing April 1, 2024, monetary assets and liabilities denominated in currencies other than USD are remeasured at period-end using the period-end exchange rate. Opening balances related to non-monetary assets and liabilities are based on prior period translated amounts, and non-monetary assets acquired, and non-monetary liabilities incurred after April 1, 2024, are translated at the approximate exchange rate prevailing at the date of the transaction. Income and expense accounts are translated at the average rates in effect during the fiscal year. Foreign exchange gains and losses are included in the unaudited condensed consolidated statements of operations and comprehensive loss.

Cash Equivalents

The Company considers all investments with an original maturity date at the time of purchase of three months or less to be cash equivalents. As of June 30, 2025, the Company’s cash equivalents consisted of U.S. government money market funds at a high-credit quality and federally insured financial institution. The Company’s accounts may, at times, exceed federally insured limits. The Company had cash equivalents of $29.9 million as of June 30, 2025, and $271.5 million as of December 31, 2024.

Investments

All investments have been classified as “available-for-sale” and are carried at fair value as determined based upon quoted market prices or pricing models for similar securities at period end. Investments with contractual maturities within 12 months at the balance sheet date are considered short-term investments. Those investments with contractual maturities greater than 12 months at the balance sheet date are considered long-term investments. Dividend and interest income are recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. Unrealized gains and losses are reported as a component of accumulated other comprehensive income (loss). The Company reviews its portfolio of available-for-sale debt securities, using both quantitative and qualitative factors, to determine if declines in fair value below cost have resulted from a credit-related loss or other factors. If the decline in fair value is due to credit-related factors, a loss is recognized in statements of operations, whereas if the decline in fair value is not due to credit-related factors, the loss is recorded in other comprehensive income (loss). The fair value of the Company's short-term investments and long-term investments were $149.6 million and $54.9 million, respectively, as of June 30, 2025. The Company had no short-term or long-term investments as of December 31, 2024.

Net Loss per Share

The following table sets forth the computation of basic and diluted net loss per share attributable to common shareholders (in thousands, except share and per share amounts). As the exercise price of the Company’s pre-funded warrants is $0.001 per share, it was determined to be non-substantive for accounting purposes and the pre-funded warrants were included in the denominator of both basic and diluted loss per share:


	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Numerator:
Net loss attributable to common shareholders, basic	$	(42,744	)	$	(5,854	)	$	(66,092	)	$	(60,254	)
Change in fair value of the 2022 USD Financing Warrants		—			(13,445	)		(4,771	)		—
Net loss attributable to common shareholders, diluted	$	(42,744	)	$	(19,299	)	$	(70,863	)	$	(60,254	)
Denominator:
Weighted-average pre-funded warrants used in computing net loss per share attributable to common shareholders, basic		9,753,775			—			9,753,775			—
Weighted-average shares used in computing net loss per share attributable to common shareholders, basic		75,593,902			71,912,323			75,454,764			59,886,540
Total weighted-average shares used in computing net loss per share attributable to common shareholders, basic		85,347,677			71,912,323			85,208,539			59,886,540
Incremental shares from 2022 USD Financing Warrants		—			3,391,778			1,890,467			—
Total weighted-average shares used in computing net loss per share attributable to common shareholders, diluted		85,347,677			75,304,101			87,099,006			59,886,540

Net loss per share:
Basic	$	(0.50	)	$	(0.08	)	$	(0.78	)	$	(1.01	)
Diluted	$	(0.50	)	$	(0.26	)	$	(0.81	)	$	(1.01	)

The following potentially dilutive securities have been excluded from the calculation of diluted net loss per share due to their anti-dilutive effect:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
2022 USD Financing Warrants		4,949,954		—		—		5,989,300
Stock options		5,148,374		3,532,174		5,148,374		3,532,174
RSUs		5,960,422		1,740,809		5,960,422		1,740,809
Conversion Shares		1,010,059		997,506		1,010,059		997,506
Estimated ESPP awards		27,333		—		27,333		—
Total		17,096,142		6,270,489		12,146,188		12,259,789