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

3. Fair value measurements

The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy used to determine such fair values (in thousands):

 

 

 

Fair Value Measurements at
June 30, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

45,076

 

 

$

—

 

 

$

—

 

 

$

45,076

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury bills

 

 

—

 

 

 

76,428

 

 

 

—

 

 

 

76,428

 

U.S. government agency bonds

 

 

—

 

 

 

271,695

 

 

 

—

 

 

 

271,695

 

 

$

45,076

 

 

$

348,123

 

 

$

—

 

 

$

393,199

 

 

 

 

Fair Value Measurements at
December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

321,047

 

 

$

—

 

 

$

—

 

 

$

321,047

 

U.S. treasury bills

 

 

4,173

 

 

 

—

 

 

 

—

 

 

 

4,173

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury bills

 

 

—

 

 

 

77,165

 

 

 

—

 

 

 

77,165

 

U.S. government agency bonds

 

 

—

 

 

 

67,394

 

 

 

—

 

 

 

67,394

 

 

$

325,220

 

 

$

144,559

 

 

$

—

 

 

$

469,779

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three and six months ended June 30, 2025 and for the year ended December 31, 2024, there were no transfers between Level 1, Level 2 and Level 3.

 

The fair value of the Company’s U.S. treasury bills and U.S. government agency bonds are classified as Level 2 because they are valued using observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency.

Short-term investments consisted of the following (in thousands):

 

 

 

June 30, 2025

 

 

 

Amortized
Cost

 

 

Gross Unrealized
Gains

 

 

Gross Unrealized
Losses

 

 

Fair
Value

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury bills

 

$

76,438

 

 

$

1

 

 

$

(11

)

 

$

76,428

 

U.S. government agency bonds

 

 

271,427

 

 

 

364

 

 

 

(96

)

 

 

271,695

 

Total short-term investments:

 

$

347,865

 

 

$

365

 

 

$

(107

)

 

$

348,123

 

 

 

 

 

December 31, 2024

 

 

 

Amortized
Cost

 

 

Gross Unrealized
Gains

 

 

Gross Unrealized
Losses

 

 

Fair
Value

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury bills

 

$

77,142

 

 

$

37

 

 

$

(14

)

 

$

77,165

 

U.S. government agency bonds

 

 

67,442

 

 

 

34

 

 

 

(82

)

 

 

67,394

 

Total short-term investments:

 

$

144,584

 

 

$

71

 

 

$

(96

)

 

$

144,559

 

 

The contractual maturities of the Company’s short-term investments in available-for-sale securities held were as follows (in thousands):

 

 

 

June 30,
2025

 

 

December 31, 2024

 

Due within one year

 

$

258,505

 

 

$

109,943

 

Due after one year through two years

 

 

89,618

 

 

 

34,616

 

Total available-for-sale securities

 

$

348,123

 

 

$

144,559

 

 

Valuation of preferred stock tranche right liabilities

The preferred stock tranche right liability in the table below is composed of the fair value of the obligation to issue Series B redeemable convertible preferred stock (“Series B Preferred Stock”) (Note 8). The fair value of the preferred stock tranche right liability was based on significant inputs not observable in the market, which represented a Level 3 measurement within the fair value hierarchy.

The fair value of the Series B preferred stock tranche right liability was determined using an option pricing model as it represents an option for the Series B Option Shares (as defined in Note 8). The valuation considered as inputs the estimated fair value of the Series B Preferred Stock as of each valuation date, the risk-free interest rate, volatility, expected dividends, and estimated time to the tranche closing.

The most significant assumption in the valuation model impacting the fair value of the preferred stock tranche right liability is the fair value of the Company’s Series B Preferred Stock as of each measurement date. The Company determined the fair value per share of the underlying Series B Preferred Stock by taking into consideration the most recent sales of its Series B Preferred Stock, results obtained from third-party valuations and additional factors the Company deemed relevant. In April 2024, upon satisfaction of certain conditions, the Company issued and sold 8,823,523 shares of Series B Preferred Stock at a price of $17.00 per share, which resulted in the settlement of the associated Series B preferred stock tranche right liability. The fair value of Series B Preferred Stock was $17.002 per share upon the closing.

 

The following table presents a roll-forward of the fair value of the Series B preferred stock tranche right liability during the six months ended June 30, 2024, for which fair value is determined using Level 3 inputs (in thousands):

 

 

 

Series B Preferred
Stock Tranche
Right Liability

 

 

 

 

 

 

 

 

 

Fair value at December 31, 2023

 

$

2,874

 

Change in fair value of Series B preferred stock tranche right liability

 

 

(2,859

)

Final settlement of Series B preferred stock tranche right liability

 

 

 

 

 

 

(15

)

Fair value at June 30, 2024

 

$

—