Annual report [Section 13 and 15(d), not S-K Item 405]

Fair Value Measurement (Tables)

v3.25.4
Fair Value Measurement (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of fair value financial assets measured on a recurring basis
The following tables represent 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:
December 31, 2025
(in thousands) Level 1 Level 2 Level 3 Total
Assets:
Money market funds $ 28,255  $ —  $ —  $ 28,255 
U.S. Treasuries 5,980  —  —  5,980 
Total assets $ 34,235  $ —  $ —  $ 34,235 
Liabilities:
Debt derivative liabilities $ —  $ —  $ 3,886  $ 3,886 
December 31, 2024
(in thousands) Level 1 Level 2 Level 3 Total
Assets:
Money market funds $ 19,399  $ —  $ —  $ 19,399 
U.S. Treasuries 5,928  —  —  5,928 
Total assets $ 25,327  $ —  $ —  $ 25,327 
Liabilities:
Debt derivative liability $ —  $ —  $ 2,400  $ 2,400 
Schedule of fair value instruments classified Level 3
The changes in Level 3 liabilities measured at fair value on a recurring basis are as follows for the periods presented:
(in thousands) Debt Derivative Liabilities
Balance, December 31, 2023 $ 2,987 
Change in fair value included in net loss (587)
Balance, December 31, 2024 2,400 
Change in fair value included in net loss 1,486 
Balance, December 31, 2025 $ 3,886 
Schedule of significant inputs in liability valuation
The significant inputs, as of the periods presented, that are included in the valuation of the debt derivative liability - first tranche include:
Input December 31, 2025 December 31, 2024
Remaining term (years) 1.5 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 11.23% (1) 12.22  % (1)
Probability of mandatory prepayment after 2025 10.0% (1) 15.0% (1)
Estimated timing of mandatory prepayment event after 2025 March 31, 2026 (1) March 31, 2026 (1)
Probability of optional prepayment event 80.0% (1) 5.0% (1)
Estimated timing of optional prepayment event January 31, 2026 (1) December 31, 2025 (1)
Probability of note held-to-maturity (2)
10.0% (1) 80.0% (1)
__________
(1)Represents a significant unobservable input.
(2)See Maturity date in table.
The significant inputs, as of the periods presented, that are included in the valuation of the debt derivative liability - second tranche include:
Input December 31, 2025 December 31, 2024
Remaining term (years) 2.5 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 14.49  % (1) 15.48  % (1)
Probability of mandatory prepayment after 2025 10.0% (1) 15.0% (1)
Estimated timing of mandatory prepayment event after 2025 March 31, 2026 (1) March 31, 2026 (1)
Probability of optional prepayment event 80.0% (1) 5.0% (1)
Estimated timing of optional prepayment event January 31, 2026 (1) December 31, 2025 (1)
Probability of note held-to-maturity (2)
10.0  % (1) 80.0  % (1)
__________
(1)Represents a significant unobservable input.
(2)See Maturity date in table.