v3.26.1
Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments
4.
FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table presents information about the Company’s assets and liabilities measured at the fair value on a recurring basis as of March 31, 2026 and December 31, 2025 (in thousands), and the fair value hierarchy of the valuation techniques utilized.

 

 

As of March 31, 2026

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

257,206

 

 

$

—

 

 

$

—

 

 

$

257,206

 

U.S. agency bonds

 

 

—

 

 

 

110,904

 

 

 

—

 

 

 

110,904

 

Total

 

$

257,206

 

 

$

110,904

 

 

$

—

 

 

$

368,110

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

DDSU Liability

 

$

3,638

 

 

$

—

 

 

$

—

 

 

$

3,638

 

2022 USD Financing Warrant Liability

 

 

—

 

 

 

—

 

 

 

49,471

 

 

 

49,471

 

Total

 

$

3,638

 

 

$

—

 

 

$

49,471

 

 

$

53,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

255,280

 

 

$

—

 

 

$

—

 

 

$

255,280

 

U.S. agency bonds

 

 

—

 

 

 

153,756

 

 

 

—

 

 

 

153,756

 

Total

 

$

255,280

 

 

$

153,756

 

 

$

—

 

 

$

409,036

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

DDSU Liability

 

$

2,608

 

 

$

—

 

 

$

—

 

 

$

2,608

 

2022 USD Financing Warrant Liability

 

 

—

 

 

 

—

 

 

 

40,905

 

 

$

40,905

 

Total

 

$

2,608

 

 

$

—

 

 

$

40,905

 

 

$

43,513

 

 

There were no transfers into or out of Level 1, Level 2, or Level 3 during the three months ended March 31, 2026 and the year ended December 31, 2025.

The Company issued liability-classified warrants to purchase Common Shares in its underwritten public offering that closed on September 30, 2022 (the “2022 USD Financing Warrants”). The warrant liability is measured at fair value on a recurring basis and is classified as Level 3 in the fair value hierarchy. Its fair value is determined using the Black-Scholes option pricing model using the following assumptions:

 

 

As of March 31, 2026

 

As of December 31, 2025

Share price

 

$18.90

 

$13.39

Expected volatility

 

72.72%

 

74.32%

Risk-free rate

 

3.70%

 

3.44%

Expected life

 

1.5 years

 

1.75 years