v3.25.2
Fair Value Measurement
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurement

3. Fair Value Measurement

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels of certain securities within the fair value hierarchy. The Company recognize transfers into and out of levels within the fair value hierarchy in the period in which the actual event or change in circumstances that caused the transfer occurs. There have been no transfers between Level 1, Level 2, and Level 3 in any periods presented.

Carrying amounts of certain of the Company’s financial instruments including, cash and cash equivalents, prepaid expenses and other current assets, accounts payable, accrued clinical and research and development expenses, and accrued expenses and other current liabilities approximate fair value due to the short-term nature of these instruments.

The following table presents the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy as of June 30, 2025:

 

 

Valuation

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

 

Hierarchy

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

 

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

106,801

 

 

$

—

 

 

$

—

 

 

$

106,801

 

Total

 

 

 

$

106,801

 

 

$

—

 

 

$

—

 

 

$

106,801

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies securities

 

Level 2

 

$

6,499

 

 

$

—

 

 

$

(5

)

 

$

6,494

 

U.S. Treasury securities

 

Level 2

 

 

138,331

 

 

 

16

 

 

 

(20

)

 

 

138,327

 

Total

 

 

 

$

144,830

 

 

$

16

 

 

$

(25

)

 

$

144,821

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

$

251,631

 

 

$

16

 

 

$

(25

)

 

$

251,622

 

 

The Company’s marketable securities as of June 30, 2025 mature within one year.

The following table presents the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2024:

 

 

Valuation

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

 

Hierarchy

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

 

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

63,354

 

 

$

1

 

 

$

—

 

 

$

63,355

 

Total

 

 

 

$

63,354

 

 

$

1

 

 

$

—

 

 

$

63,355

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies securities

 

Level 2

 

$

102,094

 

 

$

138

 

 

$

(8

)

 

$

102,224

 

U.S. Treasury securities

 

Level 2

 

 

172,906

 

 

 

199

 

 

 

(5

)

 

 

173,100

 

Total

 

 

 

$

275,000

 

 

$

337

 

 

$

(13

)

 

$

275,324

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

Level 2

 

$

28,422

 

 

$

7

 

 

$

(41

)

 

$

28,388

 

Total

 

 

 

$

28,422

 

 

$

7

 

 

$

(41

)

 

$

28,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

$

366,776

 

 

$

345

 

 

$

(54

)

 

$

367,067

 

The valuation techniques used to measure the fair values of the Company’s Level 2 financial instruments, which generally have counterparties with high credit ratings, are based on quoted market prices when available. If quoted market prices are not available, the fair value for the security is estimated under the market or income approach using pricing models with market observable inputs.

As of June 30, 2025, the Company does not hold any marketable securities that have been in a continuous unrealized loss position for over 12 months. For short-term marketable securities with an unrealized loss as of June 30, 2025, the unrealized losses were not due to credit-related factors, the Company does not intend to sell these short-term investments, and it is more likely than not that the Company will hold these short-term investments until maturity or a recovery of the cost basis. Therefore, the Company did not recognize an allowance for credit-related losses or an other-than-temporary impairment charge for any of its investments during the three and six months ended June 30, 2025, and 2024. Realized gains (losses) were not material during the three and six months ended June 30, 2025, and 2024.