Quarterly report [Sections 13 or 15(d)]

Fair Value Measurements

v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 4. Fair Value Measurements

The Company’s assets and liabilities that were measured at fair value on a recurring basis were as follows:

 

 

Fair Value Measured as of March 31, 2026

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (i)

 

$

9,812

 

 

$

—

 

 

$

—

 

 

$

9,812

 

Customer deposit— non cash consideration (ii)

 

384

 

 

 

—

 

 

 

—

 

 

 

384

 

Total financial assets

 

$

10,196

 

 

$

—

 

 

$

—

 

 

$

10,196

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Customer liabilities— non cash consideration (iii)

 

$

384

 

 

$

—

 

 

$

—

 

 

$

384

 

Common stock warrant liabilities (2022 Private Warrant) (iv)

 

 

—

 

 

 

—

 

 

 

2

 

 

 

2

 

Common stock warrant liabilities (Placement Agent Warrants) (iv)

 

 

—

 

 

 

—

 

 

 

29

 

 

 

29

 

Common stock warrant liabilities (BEPO Warrants) (iv)

 

 

—

 

 

 

—

 

 

 

48

 

 

 

48

 

Common stock warrant liabilities (BEPO Agent Warrants) (iv)

 

 

—

 

 

 

—

 

 

 

30

 

 

 

30

 

Contingent earnout liabilities

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Total financial liabilities

 

$

384

 

 

$

—

 

 

$

110

 

 

$

494

 

 

 

Fair Value Measured as of December 31, 2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (i)

 

$

37,124

 

 

$

—

 

 

$

—

 

 

$

37,124

 

Customer deposit— non cash consideration (ii)

 

 

—

 

 

 

—

 

 

 

1,158

 

 

 

1,158

 

Total financial assets

 

$

37,124

 

 

$

—

 

 

$

1,158

 

 

$

38,282

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Customer liabilities— non cash consideration (iii)

 

$

—

 

 

$

—

 

 

$

1,158

 

 

$

1,158

 

Common stock warrant liabilities (2022 Private Warrant) (iv)

 

 

—

 

 

 

—

 

 

 

2

 

 

 

2

 

Common stock warrant liabilities (Placement Agent Warrants) (iv)

 

 

—

 

 

 

—

 

 

 

29

 

 

 

29

 

Common stock warrant liabilities (BEPO Warrants) (iv)

 

 

—

 

 

 

—

 

 

 

48

 

 

 

48

 

Common stock warrant liabilities (BEPO Agent Warrants) (iv)

 

 

—

 

 

 

—

 

 

 

30

 

 

 

30

 

Contingent earnout liabilities

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Total financial liabilities

 

$

—

 

 

$

—

 

 

$

1,268

 

 

$

1,268

 

 

(i)
Included in cash and cash equivalents on the unaudited condensed consolidated balance sheets.
(ii)
Included in prepaid expenses and other current assets on the unaudited condensed consolidated balance sheet.
(iii)
Included in accrued expenses and other current liabilities on the unaudited condensed consolidated balance sheet.
(iv)
Included in warrant liabilities on the unaudited condensed consolidated balance sheets.

For more information regarding the various warrant and contingent earnout liabilities, see Note 10, Equity Instruments.

The aggregate fair value of the Company’s money market funds approximated amortized cost and, as such, there were no unrealized gains or losses on money market funds as of March 31, 2026 and December 31, 2025. Realized gains and losses, net of tax, were not material for any of the periods presented.

The following table presents a summary of the changes in the fair value of the Company’s Level 3 financial instruments:

 

 

 

2022
Private
Warrant (i)

 

 

Contingent
earnout
liabilities (ii)

 

 

Placement
Agent
Warrants (i)

 

 

BEPO
Warrants (i)

 

 

BEPO
Agent
Warrants

 

 

Customer liabilities— non cash consideration (iii)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value as of January 1, 2026

 

$

2

 

 

$

1

 

 

$

29

 

 

$

48

 

 

$

30

 

 

$

1,158

 

Change in fair value

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Change due to conversion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,158

)

Fair value as of March 31, 2026

 

$

2

 

 

$

1

 

 

$

29

 

 

$

48

 

 

$

30

 

 

$

—

 

 

 

2022
Private
Warrant (i)

 

 

Contingent
earnout
liabilities (ii)

 

 

RDO
Warrants (i)

 

 

Placement
Agent
Warrants (i)

 

 

2024 Private Warrants (ii)

 

 

BEPO Warrants (i)

 

 

BEPO Agent Warrants

 

 

July 2024 Private Warrants (i)

 

 

August Inducement Warrants (i)

 

(In thousands)

 

Fair value as of January 1, 2025

 

$

1

 

 

$

11

 

 

$

90

 

 

$

16

 

 

$

2

 

 

$

378

 

 

$

18

 

 

$

866

 

 

$

796

 

Change in fair value

 

(1

)

 

 

—

 

 

 

55

 

 

 

(13

)

 

 

(1

)

 

 

176

 

 

 

(14

)

 

 

440

 

 

 

402

 

Change due to exchange

 

 

—

 

 

 

—

 

 

 

(145

)

 

 

—

 

 

 

(1

)

 

 

(548

)

 

 

 

 

 

(1,306

)

 

 

(1,198

)

Fair value as of March 31, 2025

 

$

—

 

 

$

11

 

 

$

—

 

 

$

3

 

 

$

—

 

 

$

6

 

 

$

4

 

 

$

—

 

 

$

—

 
i.
In determining the fair value the Company used the Monte Carlo simulation model using a distribution of potential outcomes on a weekly basis over the applicable periods that assumes optimal exercise of the Company’s redemption option at the earliest possible date (see Note 10, Equity Instruments).
ii.
In determining the fair value the Company used the Black-Scholes option pricing model to estimate the fair value using unobservable inputs including the expected term, expected volatility, risk-free interest rate and dividend yield (see Note 10, Equity Instruments).
iii.
In determining the fair value the Company used the Black-Scholes option pricing model to estimate the fair value using unobservable inputs including the expected term, expected volatility, risk-free interest rate and dividend yield (see Note 6, Balance Sheet Components).

 

The fair value of the various warrants, contingent earnout liabilities and customer liabilities are based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy.