FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
The short-term nature of the Company’s cash and cash equivalents, accounts receivable, and current liabilities causes each of their carrying values to approximate fair value for all periods presented.

The following table presents the Company’s fair value hierarchy for financial instruments as of December 31, 2025 (in thousands):

Level 1Level 2Level 3Total
Assets:
Money market funds
$185,050 $— $— $185,050 
Total$185,050 $— $— $185,050 

Level 1Level 2Level 3Total
Liabilities:
Earnout liability$— $— $22,632 $22,632 
Total$— $— $22,632 $22,632 

The following table presents the Company’s fair value hierarchy for financial instruments as of December 31, 2024 (in thousands):

Level 1Level 2Level 3Total
Assets:
Money market funds
$66,525 $— $— $66,525 
Total$66,525 $— $— $66,525 

Level 1Level 2Level 3Total
Liabilities:
Earnout liability$— $— $10,208 $10,208 
Total$— $— $10,208 $10,208 
The Company did not transfer any investments between level 1 and level 2 of the fair value hierarchy in the years ended December 31, 2025 and 2024.
The following table provides a reconciliation between the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3). See Note 11 - “Earnout Liability” for more details. (In thousands):
Fair Value Measurements Using Significant Unobservable Inputs
Balance at December 31, 2024$10,208 
Fair value adjustment12,424 
Balance at December 31, 2025$22,632 

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Mar 19, 2025
2023Mar 6, 2024
2022Apr 3, 2023
2021Mar 31, 2022
2020Mar 25, 2021

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.