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Fair Value Measurements
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The fair value measurements of assets and liabilities that are measured at fair value on a recurring basis consisted of the following as of September 30, 2025 (in thousands):
As of September 30, 2025
Level 1Level 2Level 3Total
Current assets:
Money market funds$7,770 $- $- $7,770 
Total assets$7,770 $- $- $7,770 
Liabilities:
Redeemable convertible preferred stock warrants$- $- $406 $406 
Common stock warrants- - 3,942 3,942 
Term loan- - 54,986 54,986 
Total liabilities$- $- $59,334 $59,334 

The fair value measurements of assets and liabilities that are measured at fair value on a recurring basis consisted of the following as of December 31, 2024 (in thousands):
As of December 31, 2024
Level 1Level 2Level 3Total
Current assets:
Money market funds$7,538 $- $- $7,538 
Total assets$7,538 $- $- $7,538 
Liabilities:
Redeemable convertible preferred stock warrants$- $- $230 $230 
Common stock warrants- - 2,533 2,533 
Term loan- - 51,481 51,481 
Total liabilities$- $- $54,244 $54,244 
Level 3 instruments consist of the Company’s Series A-6 redeemable convertible preferred stock warrant liabilities, common stock warrant liabilities, a term loan and convertible notes.
The fair values of the Series A-6 redeemable convertible preferred stock warrant and common stock warrant are measured using a probability weighted option pricing model.
The significant assumptions used in preparing the option pricing model for valuing the common stock warrant liability as of September 30, 2025 and December 31, 2024, are as follows:
September 30,
2025		December 31,
2024
Stock price$40.77 $20.32 
Exercise price
$2.80 – $10.92
$2.80 – $10.92
Volatility76.1 %84.0 %
Expected term (years) 1.50  2.30
Risk-free rate3.50 %4.14 %
Dividend yield- %- %
The significant assumptions used in preparing the option pricing model for valuing the redeemable convertible preferred stock warrant liability as of September 30, 2025 and December 31, 2024, are as follows:
September 30,
2025		December 31,
2024
Stock price$42.08 $25.83 
Exercise price$2.59 $2.59 
Volatility76.1 %84.0 %
Expected term (years) 1.50 2.30
Risk-free rate3.50 %4.14 %
Dividend yield- %- %
The fair value of the convertible notes is measured based on the present value of the notes based on the fair market yield to maturity and an estimate of the probability of the notes’ conversion features. The fair market yield was estimated based on publicly traded debt securities with similar maturities and risk. During the nine months ended September 30, 2024, the Company settled the convertible notes through the issuance of Series C-1 redeemable convertible preferred stock to the noteholders (See Note 7).
The significant assumptions used in preparing discounted cash flow for valuing the convertible notes as of right before the conversion date of May 15, 2024, are as follows:
May 15,
2024
Principal outstanding (in $’000s)30,000 
Expected term (years)- 
Risk-free rate5.46 %
Interest rate8.00 %
In August 2024, the Company entered into a new term loan agreement for which the Company elected to account for using the fair value option. As such, the fair value of the debt is calculated by using the probability weighting of the present value of settlement scenarios (See Note 8).
The significant assumptions used in preparing the income approach model for valuing the new term loan as of September 30, 2025 and December 31, 2024, are as follows:
September 30,
2025		December 31,
2024
Discount rate8.02 %9.37 %
Annual interest rate8.00 %8.00 %
Expected term (years) – Scenario 14.505.32
Expected term (years) – Scenario 25.856.69
The common stock warrants, redeemable convertible preferred stock warrants, convertible notes and term loan are all classified as Level 3 fair value measurements due to the lack of relevant observable market data for the respective fair value inputs for each instrument.
The following tables present a summary of the changes in the fair value of the Company’s Level 3 financial instruments (in thousands):
Common Stock
Warrants		Redeemable
Convertible
Preferred Stock
Warrants		Term Loan
Balance at December 31, 2024$2,533 $230 $51,481 
Adjustments to fair value(58)2 1,797 
Balance at March 31, 20252,475 232 53,278 
Adjustments to fair value
(5)19 (1,206)
Balance at June 30, 20252,470 251 52,072 
Adjustments to fair value
1,472 155 2,914 
Balance at September 30, 2025$3,942 $406 $54,986 
Common Stock
Warrants		Redeemable
Convertible
Preferred Stock
Warrants		Convertible NotesTerm Loan
Balance at December 31, 2023$1,653 $146 $47,686 $— 
Adjustments to fair value167 16 337 — 
Balance at March 31, 20241,820 162 48,023 — 
Adjustments to fair value
190 17 498 — 
Gain on extinguishment— — (8,635)— 
Settlements— — (39,886)— 
Balance at June 30, 20242,010 179 — — 
Additions— — — 50,000 
Adjustments to fair value143 16 — 1,650 
Balance at September 30, 2024$2,153 $195 $— $51,650 
For the three months ended and nine months ended September 30, 2025 and 2024, the Company recognized losses related to the change in the fair value of the common stock warrant liability and redeemable convertible preferred stock warrant liability in other expense, net in the statements of operations and comprehensive income (loss). The Company will continue to recognize changes in the fair value of the common stock warrant liability and redeemable convertible preferred stock warrant liability until the warrants are exercised, expire, or qualify for equity classification.
For the nine months ended September 30, 2024, the Company recognized losses related to the change in the fair value of convertible notes in change in fair value of convertible notes in the statements of operations and comprehensive income (loss). During the nine months ended September 30, 2024, the convertible notes were settled in Series C-1 Redeemable Convertible Preferred Stock which was accounted for as a debt extinguishment as the settlement was not pursuant to the original conversion terms. The Company recorded a gain on extinguishment in net gain on extinguishment of debt in the statements of operations and comprehensive income (loss) upon the conversion date (See Note 7).
For the three months ended September 30, 2025 and 2024 and the nine months ended September 30, 2025 and 2024, the Company recognized a loss related to the change in fair value of the term loan in change in fair value of term loan in the statements of operations and comprehensive income (loss).
The common stock warrant liability and redeemable convertible preferred stock warrant liabilities are recorded within other non-current liabilities on the balance sheets as of September 30, 2025 and December 31, 2024. The term loan is recorded within long-term debt on the balance sheet as of September 30, 2025 and December 31, 2024.
The Company recognizes transfers among Level 1, Level 2 and Level 3 classifications as of the actual date of the events or change in circumstances that caused the transfers. During the three and nine months ended September 30, 2025 and 2024, the Company had no transfers of financial assets or liabilities between different levels of the fair value hierarchy.