Fair Value MeasurementsThe following tables present the Company’s fair value hierarchy for its assets that are measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair value:
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| | December 31, 2025 |
| (in thousands) | | Level 1 | | Level 2 | | Level 3 | | Total |
| Cash equivalents: | | | | | | | | |
| Money market funds | | $ | — | | | $ | 57,282 | | | $ | — | | | $ | 57,282 | |
| U.S. Treasury and government securities | | — | | | 2,739 | | | — | | | 2,739 | |
| Corporate debt securities | | — | | | 2,698 | | | — | | | 2,698 | |
| Short-term investments: | | | | | | | | |
| U.S. Treasury and government securities | | — | | | 78,152 | | | — | | | 78,152 | |
| Corporate debt securities | | — | | | 36,496 | | | — | | | 36,496 | |
| Total cash equivalents and investments | | $ | — | | | $ | 177,367 | | | $ | — | | | $ | 177,367 | |
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| | December 31, 2024 |
| (in thousands) | | Level 1 | | Level 2 | | Level 3 | | Total |
| Cash equivalents: | | | | | | | | |
| Money market funds | | $ | — | | | $ | 178,212 | | | $ | — | | | $ | 178,212 | |
| Corporate debt securities | | — | | | 3,793 | | | — | | | 3,793 | |
| Short-term investment: | | | | | | | | |
| U.S. Treasury and government securities | | — | | | 2,998 | | | — | | | 2,998 | |
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| Related party short-term investment: | | | | | | | | |
| Beam equity securities | | 4,968 | | | — | | | — | | | 4,968 | |
| Total cash equivalents and investments | | $ | 4,968 | | | $ | 185,003 | | | $ | — | | | $ | 189,971 | |
The Company classifies its investments as short-term based on each instrument’s underlying contractual maturity date. The fair value of investments classified as Level 2 are valued using observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency.
Investments in Debt Securities
Unrealized gains and losses of investments in debt securities consisted of the following:
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| | December 31, 2025 |
| (in thousands) | | Amortized Cost | | Unrealized Gains | | Unrealized Losses | | Fair Value |
| Short-term investments in debt securities: | | | | | | | | |
| U.S. Treasury and government securities | | $ | 78,074 | | | $ | 78 | | | $ | — | | | $ | 78,152 | |
| Corporate debt securities | | 36,492 | | | 7 | | | (3) | | | $ | 36,496 | |
| Total short-term investments in debt securities | | $ | 114,566 | | | $ | 85 | | | $ | (3) | | | $ | 114,648 | |
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| | December 31, 2024 |
| (in thousands) | | Amortized Cost | | Unrealized Gains | | Unrealized Losses | | Fair Value |
| Short-term investments in debt securities: | | | | | | | | |
| U.S. Treasury and government securities | | $ | 2,997 | | | $ | 1 | | | $ | — | | | $ | 2,998 | |
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The contractual maturities of the Company’s investments in debt securities held were as follows:
| | | | | | | | | | | | | | |
| (in thousands) | | December 31,
2025 | | December 31,
2024 |
| Due within one year | | $ | 114,648 | | | $ | 2,998 | |
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Marketable securities in unrealized loss positions consisted of the following:
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| | As of December 31, 2025: |
| (in thousands, except number of securities) | | Number of Securities | | Fair Value | | Gross Unrealized Losses |
| Investments in continuous loss position for less than 12 months: | | | | | | |
| | | | | | |
| Corporate debt securities | | 8 | | | 8,446 | | | (3) | |
Based on factors such as historical experience, market data, issuer-specific factors, and current economic conditions, the Company did not record an allowance for credit losses as of December 31, 2025 related to these investments. Further, given the lack of significant change in the credit risk, the Company does not consider these investments to be impaired.
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.