Note 9 - Fair Value Measurements

12 Months Ended

Dec. 31, 2025

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 Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data; and

Level 3 - Unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Below is the summary of our cash equivalents and short-term investments measured at fair value on a recurring basis and categorized using the fair value hierarchy (in thousands):


	December 31, 2025
	Level 1		Level 2		Total
Cash equivalents
Money market fund	$	24,134	$	-	$	24,134
Commercial paper		-		2,488		2,488
Corporate debt securities		-		826		826
Total cash equivalents		24,134		3,314		27,448
Available-for-sale securities
Securities of U.S. government and government agencies		-		30,010		30,010
Commercial paper		-		19,499		19,499
Certificates of deposit		-		1,721		1,721
Corporate debt securities		-		56,960		56,960
Asset-backed securities		-		5,918		5,918
Total available-for-sale securities		-		114,108		114,108
Total cash equivalents and available-for-sale securities	$	24,134	$	117,422	$	141,556


	December 31, 2024
	Level 1		Level 2		Total
Cash equivalents
Money market fund	$	46,079	$	-	$	46,079
Corporate debt securities		-		9,663		9,663
Securities of U.S. government and government agencies		-		3,978		3,978
Total cash equivalents		46,079		13,641		59,720
Available-for-sale securities
Securities of U.S. government and government agencies		-		51,500		51,500
Commercial paper		-		44,473		44,473
Corporate debt securities		-		64,570		64,570
Asset-backed securities		-		4,793		4,793
Total available-for-sale securities		-		165,336		165,336
Total cash equivalents and available-for-sale securities	$	46,079	$	178,977	$	225,056

There were no Level 3 financial instruments measured at fair value on a recurring basis as of December 31, 2025 and December 31, 2024.

For information related to the Company’s short-term investments, see Note 7, Available-for-Sale Securities.