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Financial Instruments
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Financial Instruments Financial Instruments
The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or non-recurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Level 1—Observable inputs such as quoted prices in active markets.
Level 2—Inputs, other than the quoted prices in active markets that are observable either directly or indirectly.
Level 3—Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by management in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value of the instrument. The carrying
amounts of the Company’s financial instruments, including cash equivalents classified within the Level 1 designation, prepaid and other current assets, accounts payable, and accrued liabilities approximate fair value due to their short maturities. Cash equivalents, marketable securities, and the preferred stock warrants liability are recorded at fair value on a recurring basis. Equity investments without a readily determinable fair value are recorded at cost and adjusted to fair value based on observable price changes in orderly transactions for identical or similar investment of the same issuer.
None of the Company’s non-financial assets or liabilities are recorded at fair value on a non-recurring basis.
Assets and liabilities measured at fair value on a recurring basis are as follows (in thousands):
Fair Value Measurements at Reporting Date
TotalLevel 1Level 2Level 3
At June 30, 2025:
Cash equivalents
Money market funds$35,609 $35,609 $— $— 
Corporate debt securities1,550 — 1,550 — 
Total cash equivalents measured at fair value$37,159 $35,609 $1,550 $— 
Marketable securities
U.S. treasury securities$51,902 $51,902 $— $— 
Commercial paper50,548 — 50,548 — 
Corporate debt securities49,005 — 49,005 — 
U.S. government agency securities18,444 — 18,444 — 
Asset-backed securities2,012 — 2,012 — 
Total marketable securities measured at fair value$171,911 $51,902 $120,009 $— 
At December 31, 2024:
Cash equivalents
Money market funds$17,693 $17,693 $— $— 
U.S. government securities999 — 999 — 
U.S. treasury securities997 997 — — 
Total cash equivalents measured at fair value$19,689 $18,690 $999 $— 
Marketable securities
Commercial paper$58,823 $— $58,823 $— 
U.S. treasury securities46,309 46,309 — — 
Corporate debt securities43,669 — 43,669 — 
U.S. government agency securities40,071 — 40,071 — 
Total marketable securities measured at fair value$188,872 $46,309 $142,563 $— 
The following table presents the amortized cost and estimated fair market value of our cash equivalents and marketable securities as of the dates presented (in thousands):
June 30, 2025
Amortized CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated Fair
Value
Cash equivalents:
Money market funds$35,609 $— $— $35,609 
Corporate debt securities1,550 — — 1,550 
Marketable securities:
U.S. treasury securities$51,865 $42 $(5)$51,902 
Commercial paper50,563 5 (20)50,548 
Corporate debt securities48,992 17 (4)49,005 
U.S. government agency securities18,440 8 (4)18,444 
Asset-backed securities2,013 — (1)2,012 
Totals$209,032 $72 $(34)$209,070 
December 31, 2024
Amortized CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated Fair
Value
Cash equivalents:
Money market funds$17,693 $— $— $17,693 
U.S. government securities999 — — 999 
U.S. treasury securities997 — — 997 
Marketable securities:
Commercial paper$58,798 $56 $(31)$58,823 
U.S. treasury securities46,231 80 (2)46,309 
Corporate debt securities43,634 49 (14)43,669 
U.S. government agency securities40,013 60 (2)40,071 
Totals$208,365 $245 $(49)$208,561 
The following table presents available-for-sale securities by contractual maturity date as of June 30, 2025 (in thousands):
June 30, 2025
Amortized CostEstimated Fair Value
Due in one year or less$157,218 $157,228 
Due after one year14,655 14,683 
Total$171,873 $171,911 

As of June 30, 2025, fifty-one of the Company's marketable securities with a fair market value of $70.7 million were in an immaterial aggregate gross unrealized loss position; these fifty-one marketable securities have all been in a gross unrealized loss position for less than one year. Based on a review of these marketable securities, the Company believes none of the unrealized loss is the result of a credit loss as of June 30, 2025, because the Company does not intend to sell these securities, and it is not more-likely-than-not that the Company will be required to sell these securities before the recovery of their amortized cost basis. Refer to Note 2 for further discussion on the Company's evaluation of unrealized losses on available-for-sale securities. Accrued interest receivable on marketable securities was $1.3 million and $1.1 million at June 30, 2025 and December 31, 2024, respectively, and was recorded within prepaid expenses and other current assets in the condensed consolidated balance sheets. We did not write off any accrued interest receivables for the six months ended June 30, 2025 and 2024.
The Company did not transfer any assets measured at fair value on a recurring basis between levels during the six months ended June 30, 2025 and 2024.
The following table presents activity for the preferred stock warrants liability during the six months ended June 30, 2024 (in thousands):
Preferred Stock Warrants Liability
Balance at December 31, 2023$871 
Change in fair value1,047 
Conversion of preferred stock warrants liability to equity(1,918)
Balance at June 30, 2024$— 
The warrants’ estimated fair value as of the Merger date utilized the Black-Scholes model and the following input assumptions: risk free interest rate (4.3% - 4.4%), expected term (3.6 - 4.1 years), dividend yield (0.0%), volatility (103.0% - 104.0%) and exercise price ($10.64 per common share).
No fair value liabilities exist as of June 30, 2025. Upon completion of the Merger, the preferred stock warrants became exercisable into shares of common stock and will no longer continue to be remeasured at each reporting date. Refer to Note 2 for further discussion on the valuation of the preferred stock warrants liability.
Equity investment without a readily determinable fair value
In conjunction with the Merger, the Company obtained an investment in common stock of an unfunded privately held, pre-clinical life sciences company, which the Company initially carried at no value. In May 2024, the private company executed a seed funding round (“Seed Financing”), which triggered an anti-dilution provision under the License and Option Agreement (“Option Agreement”), resulting in the issuance of additional shares of common stock. The Company identified the Seed Financing as an observable price change under the measurement alternative, and adjusted the equity investment from zero to an estimated fair value of $1.3 million at the time of the Seed Financing. In May 2025, the private company executed an extension of the initial seed funding round (“Seed Extension”), which the Company identified as an observable price change under the measurement alternative, and resulted in a $0.2 million increase in the fair value of the equity investment. There were no other upward or downward adjustments to the carrying value of the Company's investment without a readily determinable fair value during the three and six months ended June 30, 2025 and 2024.