Financial Instruments

3 Months Ended

Mar. 31, 2026

Fair Value Disclosures [Abstract]

Financial Instruments

Financial Instruments

A summary of financial instruments measured at fair value was as follows (in thousands):

March 31, 2026	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	24,304	$	—	$	—	$	24,304
Certificates of deposit	1,094		—		—		1,094
Endospan Loans	—		—		20,402		20,402
Total assets	$	25,398	$	—	$	20,402	$	45,800
Liabilities
Current portion of contingent consideration	$	—	$	—	$	21,490	$	21,490
Non-current contingent consideration	—		—		40,830		40,830
Total liabilities	$	—	$	—	$	62,320	$	62,320

December 31, 2025	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	20,725	$	—	$	—	$	20,725
Certificates of deposit	1,080		—		—		1,080
Endospan Loans	—		—		19,872		19,872
Total assets	$	21,805	$	—	$	19,872	$	41,677
Liabilities
Current portion of contingent consideration	$	—	$	—	$	20,690	$	20,690
Non-current contingent consideration	—		—		39,890		39,890
Total liabilities	$	—	$	—	$	60,580	$	60,580

We used prices quoted from our investment advisors to determine the Level 1 valuation of our investments in money market funds and certificates of deposit. The estimated market value of all cash equivalents is equal to the cost basis as there were no gross realized gains or losses on cash equivalents for the three months ended March 31, 2026 and 2025.

On September 2, 2020 we entered into a Securities Purchase Agreement to acquire 100% of the outstanding equity interests of Ascyrus Medical LLC (“Ascyrus”). Ascyrus developed the Ascyrus Medical Dissection Stent hybrid prosthesis (“AMDS”), the world’s first aortic arch remodeling device for use in the treatment of acute Type A aortic dissections. As part of the acquisition, we may be required to pay additional consideration in cash of up to $100.0 million to the former shareholders of Ascyrus upon the achievement of certain milestones and the sales-based additional earnout.

The contingent consideration represents the estimated fair value of future potential payments. The fair value of the contingent consideration liability was estimated by discounting to present value the contingent payments expected to be made based on a probability-weighted scenario approach. We applied a discount rate based on our unsecured credit spread and the term commensurate risk-free rate to the additional consideration to be paid, and then applied a risk-based estimate of the probability of achieving each scenario to calculate the fair value of the contingent consideration. This fair value measurement was based on unobservable inputs, including management estimates and assumptions about the future achievement of milestones and future estimate of revenues, and is, therefore, classified as Level 3 within the fair value hierarchy. We used a discount rate of approximately 17% and estimated future achievement of milestone dates to calculate the fair value of contingent consideration as of March 31, 2026. We remeasure this liability at each reporting date and record changes in the fair value of the contingent consideration in General, administrative, and marketing expenses in the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. Increases or decreases in the fair value of the contingent consideration liability can result from changes in the passage of time, discount rates, the timing and amount of our revenue estimates, and the timing and expectation of regulatory approvals.

We perform quarterly assessments of the fair value of the contingent consideration and recorded a net fair value loss of $1.7 million and a net fair value gain of $2.8 million for the three months ended March 31, 2026 and 2025, respectively, in General, administrative, and marketing expenses in the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. The $1.7 million increase in the fair value of liability for the three months ended March 31, 2026 was primarily due to the passage of time. The contingent consideration liability reflected in the Condensed Consolidated Balance Sheets as of March 31, 2026 was $62.3 million, of which $21.5 million was included in current liabilities. The $21.5 million represents the fair value of the $25.0 million contingent payment associated with FDA approval of the PMA application, which is expected to be achieved in mid-2026. The contingent consideration liability reflected in the Consolidated Balance Sheets as of December 31, 2025 was $60.6 million.

The fair value of the contingent consideration component of the Ascyrus acquisition and Endospan Loans were updated using Level 3 inputs. Changes in fair value of Level 3 assets and liabilities are listed in the tables below (in thousands):

	Contingent Consideration
Balance as of December 31, 2025	$	60,580
Change in valuation	1,740
Balance as of March 31, 2026	$	62,320

	Endospan Loans
Balance as of December 31, 2025	$	19,872
Change in valuation	530
Balance as of March 31, 2026	$	20,402

The determination of fair value and the assessment of a measurement’s placement within the hierarchy requires judgment. Level 3 valuations often involve a higher degree of judgment and complexity. Although we believe that the recorded fair values of our financial instruments are appropriate, these fair values may not be reflective of future fair values.