v3.25.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following table sets forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):
March 31, 2025
Level 1Level 2Level 3Total
Financial assets:
Money market funds$69,315 $— $— $69,315 
U.S. Treasury securities— 176,580 — 176,580 
U.S. government agency securities— 26,314 — 26,314 
Corporate debt securities— 35,897 — 35,897 
Marketable equity security
4 — — 4 
Total financial assets$69,319 $238,791 $— $308,110 
Financial liabilities:
Contingent consideration payable
$— $— $6,389 $6,389 
Success payment liabilities— — 286 286 
Total financial liabilities$— $— $6,675 $6,675 
December 31, 2024
Level 1Level 2Level 3Total
Financial assets:
Money market funds$73,975 $— $— $73,975 
U.S. Treasury securities— 226,271 — 226,271 
U.S. government agency securities— 36,815 — 36,815 
Corporate debt securities— 21,492 — 21,492 
Marketable equity security
30 — — 30 
Total financial assets$74,005 $284,578 $— $358,583 
Financial liabilities:
Contingent consideration payable
$— $— $7,600 $7,600 
Success payment liabilities— — 411 411 
Total financial liabilities$— $— $8,011 $8,011 
The Company measures the fair value of money market funds based on quoted prices in active markets for identical assets or liabilities. The Company measures the fair value of marketable equity securities traded in active markets based on quoted prices of identical assets. The Level 2 marketable securities include U.S. Treasury securities, U.S. government agency securities and corporate debt securities, which are valued using third-party pricing sources. The pricing services applied industry standard valuation models. Inputs utilized include market pricing based on real-time trade data for the same or similar securities and other significant inputs derived from or corroborated by observable market data.
The Company’s contingent consideration payable and success payment liabilities are classified as Level 3 financial instruments. The contingent consideration payable valuation was estimated using the Company’s common stock price and management’s assessment of the likelihood of achieving either (i) specified clinical milestones or (ii) certain regulatory approvals, which was determined to be approximately 95%. The success payment liabilities were estimated by management using its historical experience of the correlation of success payment fair values relative to the Company’s stock price.
The Company utilizes estimates and assumptions in determining the estimated contingent consideration payable and success payment liabilities and associated changes in fair value. A change in management’s assessment of the likelihood of achieving either (i) specified clinical milestones or (ii) certain regulatory approvals related to the estimated valuation of the contingent consideration payable may have a material change in its estimated fair value. Similarly, a small change in the valuation of the Company’s common stock may have a material change in the estimated fair value of the success payment liability and associated changes in fair value.
The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities (in thousands):
Contingent Consideration Payable
Success Payment
Liabilities
Balance at December 31, 2024
$7,600 $411 
Change in fair value (1)
(1,211)(125)
Balance at March 31, 2025
$6,389 $286 
(1)The change in fair value of the contingent consideration payable and success payment liabilities are recorded in other income, net.