4.
Fair Value Measurement

The following table presents information about the Company's financial assets measured at fair value on a recurring basis (in thousands):

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2025 Using:

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

30,833

 

 

$

30,833

 

 

$

 

 

$

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

95,609

 

 

 

95,609

 

 

 

 

 

 

 

Commercial paper

 

 

137,104

 

 

 

 

 

 

137,104

 

 

 

 

Corporate debt securities

 

 

25,661

 

 

 

 

 

 

25,661

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

73,012

 

 

 

73,012

 

 

 

 

 

 

 

Corporate debt securities

 

 

74,981

 

 

 

 

 

 

74,981

 

 

 

 

Total assets

 

$

437,200

 

 

$

199,454

 

 

$

237,746

 

 

$

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2024 Using:

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

20,607

 

 

$

20,607

 

 

$

 

 

$

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

53,676

 

 

 

53,676

 

 

 

 

 

 

 

U.S. government agency bonds

 

 

4,996

 

 

 

 

 

 

4,996

 

 

 

 

Corporate debt securities

 

 

11,870

 

 

 

 

 

 

11,870

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

11,380

 

 

 

 

 

 

11,380

 

 

 

 

Total assets

 

$

102,529

 

 

$

74,283

 

 

$

28,246

 

 

$

 

The Company classifies its money market funds and U.S. Treasury securities as Level 1 assets under the fair value hierarchy as these assets have been valued using quoted market prices in active markets without any valuation adjustment. The Company classifies its U.S. government agency bonds, commercial paper and corporate debt securities as Level 2 assets under the fair value hierarchy as these assets have been valued using information obtained through a third-party pricing service as of the balance sheet date, using observable market inputs that may include trade information, broker or dealer quotes, bids, offers, or a combination of these data sources.

During the years ended December 31, 2025 and 2024, there were no transfers between levels. The Company uses the carrying amounts of its restricted cash, prepaid expenses and other current assets, accounts payable, and accrued expenses and other current liabilities to approximate their fair values due to the short-term nature of these amounts.

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.