FAIR VALUE MEASUREMENTS
The Company evaluates assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level to classify them for each reporting period. The Company did not have any transfers between fair value measurements levels in the years ended December 31, 2025 and 2024.
The following table sets forth the Company’s assets and liabilities that were measured at fair value as of December 31, 2025 and 2024, by level within the fair value hierarchy:
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| | Fair Value Hierarchy | | Fair value measurements as of |
| Description | | | December 31, 2025 | | December 31, 2024 |
| Assets: | | | | | | |
| Cash equivalents: | | | | | | |
| Money market accounts and funds | | Level 1 | | $ | — | | | $ | 70,692 | |
| Short-term investments: | | | | | | |
| Short-term deposits | | Level 2 | | $ | — | | | $ | 3,780 | |
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| Derivative instruments asset: | | | | | | |
| Derivative instruments designated as cash flow hedging instruments | | Level 2 | | $ | 534 | | | $ | 468 | |
| | | | | | |
| Liabilities: | | | | | | |
| Warrants liability: | | | | | | |
| Public Warrants | | Level 1 | | $ | (501) | | | $ | (3,303) | |
| Private Warrants | | Level 3 | | $ | — | | | $ | (65) | |
| Derivative instruments liability: | | | | | | |
| Derivative instruments designated as cash flow hedging instruments | | Level 2 | | $ | — | | | $ | (50) | |
The Company classifies its money market accounts and funds as Level 1 based on quoted market prices in active markets.
The Company classifies its short-term investments and derivative instruments within Level 2 as they are valued using inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded.
The Company measures the fair value for Warrants by using a quoted price for the Public Warrants, which are classified as Level 1, and a Black-Scholes simulation model for the Private Warrants, which are classified as Level 3, due to the use of unobservable inputs.
The following table presents the changes in the fair value of Warrants liability:
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| | Private | | Public | | Total |
| Input | | Warrants | | Warrants | | Warrants |
| Fair value as of December 31, 2024 | | $ | 65 | | | $ | 3,303 | | | $ | 3,368 | |
| Change from private to public holdings | | (1) | | | 1 | | | — | |
| Change in fair value | | (64) | | | (2,803) | | | (2,867) | |
| Fair value as of December 31, 2025 | | $ | — | | | $ | 501 | | | $ | 501 | |
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.