v3.25.2
Fair Value Measurement
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
Available-for-sale marketable debt securities consisted of the following (in thousands):
June 30, 2025
Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Corporate debt securities
$164,421 $130 $(48)$164,503 
US treasury securities
84,561 44 (67)84,538 
$248,982 $174 $(115)$249,041 
December 31, 2024
Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Corporate debt securities
$233,291 $731 $(81)$233,941 
US treasury securities
84,160 43 (135)84,068 
$317,451 $774 $(216)$318,009 
As of June 30, 2025, seven of our available-for-sale debt securities with a fair market value of $69.4 million were in a gross unrealized loss position of $115 thousand. Seven have been in a gross unrealized loss position of $115 thousand for less than one year and none have been in a gross unrealized loss position for more than one year. When evaluating an investment for impairment, we review factors such as the severity of the impairment, changes in underlying credit ratings, forecasted recovery, our intent to sell or the likelihood that we would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. Based on our review of these marketable securities, we believe none of the unrealized loss is as a result of a credit loss as of June 30, 2025, because we do not intend to sell these securities, and it is not more-likely-than-not that we will be required to sell these securities before the recovery of their amortized cost basis.
Contractual maturities of available-for-sale debt securities are as follows (in thousands):
June 30, 2025December 31, 2024
Estimated Fair Value
Within one year
$238,918 $249,308 
After one but within five years10,123 68,701 
$249,041 $318,009 

Equity investment gains (losses) comprised the following (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Change in unrealized investment gains (losses) during the year on securities held at the end of the period$4,640 $(28,916)$(2,383)$2,253 
Investment gains (losses) during the period on securities sold— — — — 
Net gains (losses) recognized on equity securities$4,640 $(28,916)$(2,383)$2,253 
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. The Company determines the fair value of financial assets and liabilities using three levels of inputs as follows:
Level 1—Inputs which include quoted prices in active markets for identical assets or liabilities at the measurement date.
Level 2—Inputs (other than quoted market prices included in Level 1) that are either directly or indirectly observable, 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 instrument’s anticipated life.
Level 3—Unobservable inputs for assets or liabilities and include little or no market activity.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
The Company had $0.5 million in contingent consideration liabilities as of June 30, 2025 related to the agreement to terminate its Collaboration and License Agreements with Zentera. The contingent consideration balance is limited to one potential milestone payment measured at fair value. The fair value of the contingent consideration is estimated based on the monetary value of the milestone discounted for the probability of achieving the milestone and a present value factor based on the timing of when the milestone is expected to be achieved. The value for the contingent consideration balance is based on significant inputs not observable in the market which represents Level 3 measurement within the fair value hierarchy.
The following table summarizes the financial assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands):
June 30, 2025
Level 1Level 2Level 3Total estimated fair value
Financial assets:
Cash equivalents:
Money market funds
$10,624 $— $— $10,624 
Total cash equivalents:10,624 — — 10,624 
Available-for-sale marketable securities:
Corporate debt securities
— 164,503 — 164,503 
US treasury securities
84,538 — — 84,538 
Total available-for-sale marketable securities:84,538 164,503 — 249,041 
Immunome marketable equity securities$16,791 $— $— $16,791 
Total assets measured at fair value
$111,953 $164,503 $— $276,456 
Financial liabilities:
Contingent consideration— — 500 500 
Total financial liabilities$— $— $500 $500 

December 31, 2024
Level 1Level 2Level 3Total estimated fair value
Cash equivalents:
Money market funds
$13,723 $— $— $13,723 
Total cash equivalents:13,723 — — 13,723 
Available-for-sale marketable securities:
Corporate debt securities
— 233,941 — 233,941 
US treasury securities
84,068 — — 84,068 
Total available-for-sale marketable securities:84,068 233,941 — 318,009 
Immunome marketable equity securities19,174 — — 19,174 
Total assets measured at fair value
$116,965 $233,941 $— $350,906 
Financial liabilities:
Contingent consideration— — 500 500 
Total financial liabilities$— $— $500 $500 
The following significant unobservable inputs were used in the valuation of the contingent consideration payable to Zentera pursuant to the Termination Agreement at June 30, 2025:
Contingent Consideration Liability
Fair Value
as of
June 30, 2025
Valuation TechniqueUnobservable InputRange
(in thousands)
Milestone payment$500 Discounted cash flowLikelihood of occurrence
1.0% - 2.4%
Discount rate40%
Expected termPerpetuity
The following table reflects the activity for the Company’s contingent consideration, measured at fair value using Level 3 inputs (in thousands):
Contingent consideration at December 31, 2024
$500 
Changes in the fair value of contingent consideration— 
Contingent consideration at June 30, 2025
$500 
There were no transfers between levels of the fair value hierarchy during the six months ended June 30, 2025. We had one instrument that was classified within Level 3 as of June 30, 2025. As of June 30, 2025 and December 31, 2024, no material fair value adjustments were required for non-financial assets and liabilities.