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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis (in thousands):


	As of June 30, 2025
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents:
Money market funds	$	15,451	$	—	$	—	$	15,451
Corporate debt securities	—		2,601		—		2,601

U.S. government agency bonds	—		2,305		—		2,305
Term deposits (less than 90 days)	—		7,325		—		7,325
Payment-dependent notes receivable	—		—		9,604		9,604
Investments:
Corporate debt securities	—		13,430		—		13,430
U.S. government securities	—		497		—		497
U.S. government agency bonds	—		12,466		—		12,466
Term deposits(1)	—		1,083		—		1,083
Total financial assets	$	15,451	$	39,707	$	9,604	$	64,762

Payment-dependent notes payable	$	—	$	—	$	9,604	$	9,604
December 2023 Warrants	—		30		—		30
Private Placement Warrants	—		—		266		266
Total financial liabilities	$	—	$	30	$	9,870	$	9,900


	As of December 31, 2024
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents:
Money market funds	$	56,300	$	—	$	—	$	56,300
U.S. government securities	21,482		—		—		21,482
Term deposits (less than 90 days)	—		7,306		—		7,306
Payment-dependent notes receivable	—		—		7,412		7,412
Term deposits(1)	—		1,068		—		1,068
Total financial assets	$	77,782	$	8,374	$	7,412	$	93,568

Payment-dependent notes payable	$	—	$	—	$	7,412	$	7,412
December 2023 Warrants	—		45		—		45
Private Placement Warrants	—		—		147		147
Total financial liabilities	$	—	$	45	$	7,559	$	7,604

(1) Included in prepaid expenses and other current assets on the unaudited condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024.

Fair Value Measurement Inputs and Valuation Techniques

The Company estimated the fair value of the Private Placement Warrant liabilities as of June 30, 2025 and December 31, 2024, respectively, using the following key assumptions:


	As of June 30, 2025			As of December 31, 2024

Fair value of underlying securities	$	19.04		$	13.95
Expected term (years)	1.7			2.2
Expected volatility	95.0		%	82.5		%
Risk-free interest rate	3.8		%	4.3		%
Expected dividend yield	—		%	—		%

Fair value per warrant	$	0.54		$	0.30

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The Company recorded changes in the fair value of the Private Placement Warrants as follows (in thousands):


	For the three months ended June 30				For the six months ended June 30
	2025		2024		2025		2024
Beginning Balance	$	—	$	3,102	$	147	$	4,727
Change in fair value of warrant liability(1)	266		(1,255)		118		(2,880)
Balance, June 30	$	266	$	1,847	$	266	$	1,847

(1) The change in fair value of warrant liability is recorded in the unaudited condensed consolidated statement of operations within change in fair value of warrant liabilities.

The following table provides a reconciliation for all financial assets and liabilities measured at fair value using significant unobservable inputs (Level 3) for the six months ended June 30, 2025 and 2024 (in thousands):


	Total Level 3 Financial Assets		Total Level 3 Financial Liabilities
Balance as of December 31, 2024	$	7,412	7,559
Change in fair value of payment-dependent notes receivable	2,192		—
Change in fair value of Private Placement Warrants	—		118
Change in fair value of payment-dependent notes payable	—		2,192


Balance as of June 30, 2025	$	9,604	$	9,869


	Total Level 3 Financial Assets		Total Level 3 Financial Liabilities
Balance as of December 31, 2023	$	5,593	$	10,320
Change in fair value of payment-dependent notes receivable	1,165		—
Change in fair value of Private Placement Warrants	—		(2,880)
Change in fair value of payment-dependent notes payable	—		1,165


Balance as of June 30, 2024	$	6,758	$	8,605

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation


	Total Level 3 Financial Assets		Total Level 3 Financial Liabilities
Balance as of December 31, 2024	$	7,412	7,559
Change in fair value of payment-dependent notes receivable	2,192		—
Change in fair value of Private Placement Warrants	—		118
Change in fair value of payment-dependent notes payable	—		2,192


Balance as of June 30, 2025	$	9,604	$	9,869


	Total Level 3 Financial Assets		Total Level 3 Financial Liabilities
Balance as of December 31, 2023	$	5,593	$	10,320
Change in fair value of payment-dependent notes receivable	1,165		—
Change in fair value of Private Placement Warrants	—		(2,880)
Change in fair value of payment-dependent notes payable	—		1,165


Balance as of June 30, 2024	$	6,758	$	8,605

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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