Quarterly report [Sections 13 or 15(d)]

Fair Value Measurements (Tables)

v3.25.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Financial Assets Measured on a Recurring Basis
The following tables present the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of the periods presented:
September 30, 2025
(in thousands) (Level 1) (Level 2) (Level 3) Total
Assets:
Money market funds (1)
$ 15,087  $ —  $ —  $ 15,087 
U.S. Treasuries
 11,889  —  —  11,889 
Total assets $ 26,976  $ —  $ —  $ 26,976 
Liabilities:
Debt derivative liabilities $ —  $ —  $ 1,868  $ 1,868 
__________
(1)Money market funds are included in Cash and cash equivalents on the Condensed Consolidated Balance Sheet.
December 31, 2024
(in thousands) (Level 1) (Level 2) (Level 3) Total
Assets:
Money market funds (1)
$ 19,399  $ —  $ —  $ 19,399 
U.S. Treasuries
 5,928  —  —  5,928 
Total assets $ 25,327  $ —  $ —  $ 25,327 
Liabilities:
Debt derivative liabilities $ —  $ —  $ 2,400  $ 2,400 
__________
(1)Money market funds are included in Cash and cash equivalents on the Condensed Consolidated Balance Sheet.
Schedule of Fair Value Instruments Classified Level 3
The changes in Level 3 liabilities measured at fair value on a recurring basis for the periods indicated were as follows:
Three Months Ended September 30,
(in thousands) 2025 2024
Balance at June 30, 2025 and 2024 $ 2,078  $ 2,458 
Change in fair value included in net income (loss) (210) (13)
Balance at September 30, 2025 and 2024 $ 1,868  $ 2,445 
Nine Months Ended September 30,
(in thousands) 2025 2024
Balance at December 31, 2024 and 2023 $ 2,400  $ 2,987 
Change in fair value included in net loss (531) (542)
Balance at September 30, 2025 and 2024 $ 1,868  $ 2,445 
Schedule of Significant Inputs in Liability Valuation
The significant inputs that are included in the valuation of the debt derivative liability - first tranche as of the periods presented include:
Input September 30, 2025 December 31, 2024
Remaining term
1.8 years 2.5 years
Maturity date June 30, 2027 June 30, 2027
Coupon rate
9.5% - 13.0%
9.5% - 13.0%
Revenue participation payments Maximum each year Maximum each year
Discount rate 11.29% (1) 12.22% (1)
Probability of mandatory prepayment event 15.0% (1) 15.0% (1)
Estimated timing of mandatory prepayment event March 31, 2026 (1) March 31, 2026 (1)
Probability of optional prepayment event 5.0% (1) 5.0% (1)
Estimated timing of optional prepayment event December 31, 2025 (1) December 31, 2025 (1)
Probability of note held-to-maturity (2)
80.0% (1) 80.0% (1)
__________
(1)Represents a significant unobservable input.
(2)See maturity date in table.
The significant inputs that are included in the valuation of the debt derivative liability - second tranche as of the periods presented include:
Input September 30, 2025 December 31, 2024
Remaining term
 2.8 years 3.5 years
Maturity date June 30, 2028 June 30, 2028
Coupon rate
9.5% - 13.0%
9.5% - 13.0%
Revenue participation payments Maximum each year Maximum each year
Discount rate 14.45% (1) 15.48% (1)
Probability of mandatory prepayment event 15.0% (1) 15.0% (1)
Estimated timing of mandatory prepayment event March 31, 2026 (1) March 31, 2026 (1)
Probability of optional prepayment event 5.0% (1) 5.0% (1)
Estimated timing of optional prepayment event December 31, 2025 (1) December 31, 2025 (1)
Probability of held-to-maturity (2)
80.0% (1) 80.0% (1)
__________
(1)Represents a significant unobservable input.
(2)See maturity date in table.