Fair Value Measurements

3 Months Ended

Mar. 31, 2026

Fair Value Measurements

Fair Value Measurements

Note 6 – Fair Value Measurements

The carrying amount of certain financial instruments, such as cash equivalents, accounts receivable, accounts payable, and accrued liabilities, approximate fair value due to their relatively short maturities. The difference between the amortized cost and fair value of available-for-sale securities as of March 31, 2026 and December 31, 2025 was not material.

Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis

The following table summarizes the asset type, balance sheet classification, maturity, and value of the Company’s marketable securities and investments in the Condensed Consolidated Balance Sheets.

Assets	Balance Sheet Classification	Maturity	March 31, 2026		December 31, 2025
Commercial Paper	Marketable securities	Due in 1 year or less	$	56,848	$	62,166
Corporate Bonds	Marketable securities	Due in 1 year or less		126,690		122,941
Government Bonds	Marketable securities	Due in 1 year or less		29,405		39,053
U.S. Treasuries	Marketable securities	Due in 1 year or less		10,956		5,017
	Total Marketable securities		$	223,899	$	229,177
Corporate Bonds	Investments	Due in 1 year to 5 years	$	158,155	$	63,187
Government Bonds	Investments	Due in 1 year to 5 years		21,709		22,479
Equity Method Investment	Investments			1,136		1,331
	Total Investments		$	181,000	$	86,997

See Note 2 – Significant Accounting Policies to the Company’s financial statements included in the 2025 Form 10-K, as supplemented by the Notes, for information regarding Levels 1 through Level 3 inputs.

As of March 31, 2026 and December 31, 2025, the Company’s financial assets and liabilities measured and recorded at fair value on a recurring basis were classified within the fair value hierarchy as follows:

		March 31, 2026
		Level 1		Level 2		Level 3		Total
Assets	Balance Sheet Classification
Commercial Paper	Marketable securities	$	56,848	$	—	$	—	$	56,848
Corporate Bonds	Marketable securities	$	126,690	$	—	$	—	$	126,690
Government Bonds	Marketable securities	$	29,405	$	—	$	—	$	29,405
U.S. Treasuries	Marketable securities	$	10,956	$	—	$	—	$	10,956
Corporate Bonds	Investments	$	158,155	$	—	$	—	$	158,155
Government Bonds	Investments	$	21,709	$	—	$	—	$	21,709
Bifurcated embedded derivative	Loan receivable from equity method investee	$	—	$	—	$	584	$	584
Liabilities
Public Warrants	Warrant liabilities	$	3,745	$	—	$	—	$	3,745
Private Placement Warrants	Warrant liabilities	$	—	$	495	$	—	$	495

		December 31, 2025
		Level 1		Level 2		Level 3		Total
Assets	Balance Sheet Classification
Commercial Paper	Marketable securities	$	62,167	$	—	$	—	$	62,167
Corporate Bonds	Marketable securities	$	122,941	$	—	$	—	$	122,941
Government Bonds	Marketable securities	$	39,053	$	—	$	—	$	39,053
U.S. Treasuries	Marketable securities	$	5,017	$	—	$	—	$	5,017
Corporate Bonds	Investments	$	63,187	$	—	$	—	$	63,187
Government Bonds	Investments	$	22,479	$	—	$	—	$	22,479
Bifurcated embedded derivative	Loan receivable from equity method investee	$	—	$	—	$	584	$	584
Liabilities
Public Warrants	Warrant liabilities	$	9,911	$	—	$	—	$	9,911
Private Placement Warrants	Warrant liabilities	$	—	$	3,970	$	—	$	3,970

The change in fair value of the Company’s marketable securities and investments are included in Other Comprehensive Income (Loss) in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss. There were no transfers in and out of Level 3 fair value hierarchy during the three months ended March 31, 2026 or year ended December 31, 2025.

During the three months ended March 31, 2026 and 2025, the Company purchased $185,237 and $41,825 of available-for-sale securities, respectively.

Fair Value of Bifurcated Embedded Derivative

The fair value of the bifurcated embedded derivative (the “Derivative”) has been estimated using the with-and-without method as of March 31, 2026 using Level 3 unobservable inputs and Level 2 directly or indirectly observable inputs, including estimated credit rating, risk-free interest rates, and expected future cash flows. Material increases or decreases in any of those inputs may result in a significantly higher or lower fair value measurement. Material increases or decreases in expected future cash flows may result in a significantly higher or lower estimated fair value of the Derivative. See Note 12 – Related Party Transactions for more information.

Fair Value of Public Warrants and Private Placement Warrants

The fair value of the private placement warrants issued as part of the Company’s business combination in 2021 (the “Private Placement Warrants”) have been estimated using a Black-Scholes model as of March 31, 2026 and December 31, 2025. The estimated fair value of the Private Placement Warrants is determined using Level 2 directly or indirectly observable inputs. Inherent in a Black-Scholes model are assumptions related to expected stock-price volatility, expected life, risk-free interest rate, and dividend yield. Material increases (or decreases) in any of those inputs may result in a significantly higher (or lower) fair value measurement. The Company estimates the volatility of its Private Placement Warrants based on implied volatility from the Company’s publicly-traded warrants (the “Public Warrants” and, together with the Private Placement Warrants, the “Warrants”) and from historical volatility of select peer companies’ common stock that matches the expected remaining life of the Warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve for a maturity similar to the expected remaining life of the Warrants. The dividend yield is based on the historical rate, which the Company anticipates remaining at zero. The fair value of the Public Warrants has been measured based on the quoted price of such warrants on the Nasdaq Stock Market, a Level 1 input.

The following table provides quantitative information regarding Level 2 inputs used in the recurring valuation of the Private Placement Warrants as of their measurement dates.

	March 31, 2026			December 31, 2025
Exercise price	$	11.50		$	11.50
Stock price	$	3.00		$	4.25
Volatility		119.0	%		114.5	%
Term (in years)		0.69			0.94
Risk-free rate		3.64	%		3.43	%

The following table provides a roll forward (per Warrant) of the Public Warrants measured at fair value using Level 1 inputs and Private Placement Warrants measured at fair value using Level 2 inputs.

	Public Warrants		Private Placement Warrants
	Level 1 Fair Value		Level 2 Fair Value
December 31, 2025	$	0.71	$	0.74
Change in fair value	$	(0.49)	$	(0.52)
March 31, 2026	$	0.22	$	0.22

See Note 7 – Warrants for more information.