v3.25.2
Fair Value Measurements and Marketable Securities Available-for-Sale
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Marketable Securities Available for Sale

3. Fair Value Measurements and Marketable Securities Available-for-Sale

The Company provides disclosure of financial assets and financial liabilities that are carried at fair value based on the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements may be classified based on the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities using the following three levels:

Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2 — Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.) and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3 — Unobservable inputs that reflect the Company’s estimates of the assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available, including its own data.

The following table presents information about the Company’s marketable securities and the Warrant liability as of June 30, 2025 and December 31, 2024, measured at fair value on a recurring basis, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. The Company’s Warrant liabilities are included within the Level 1 and Level 3 fair value hierarchy. The fair value of the Consideration, Public and Forward Purchase Warrants is determined using the closing price of the warrants on the NYSE market. The fair value of the Private Placement Warrants is determined using the Black-Scholes option pricing formula. The primary unobservable input utilized in determining the fair value of the Private Warrants is the expected volatility. The expected volatility was estimated considering observable Public Warrant pricing, the Company's own historical volatility and the volatility of guideline public companies. There have not been any transfers between the levels during the periods.

Debt

As of June 30, 2025, the estimated fair value of our debt approximated the carrying amount. The fair value of the debt was estimated for disclosure purposes only and was determined based on other inputs that are observable, and thus categorized as Level 2 in the fair value hierarchy.

Liability Related to Revenue Interest Financing Agreement

The Company will use the prospective method to account for changes in the effective interest rate arising from changes in the estimates of the revenue stream from the royalties and will update the effective interest rate on a quarterly basis. The Company will indicate that the carrying amount of the liability related to revenue interest financing agreement is based on management's estimate of the future royalties to be paid over the life of the arrangement using an imputed rate of interest, which are considered Level 3.

 

 

 

June 30, 2025

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

198,989

 

 

$

198,989

 

 

$

—

 

 

$

—

 

 

 

 

198,989

 

 

 

198,989

 

 

 

—

 

 

 

—

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

Certificate of deposits

 

 

1,964

 

 

 

—

 

 

 

1,964

 

 

 

—

 

Commercial paper

 

 

7,494

 

 

 

—

 

 

 

7,494

 

 

 

—

 

U.S. government and government agency securities

 

 

303,978

 

 

 

—

 

 

 

303,978

 

 

 

—

 

Corporate bonds

 

 

46,316

 

 

 

—

 

 

 

46,316

 

 

 

—

 

 

 

 

359,752

 

 

 

—

 

 

 

359,752

 

 

 

—

 

Total financial assets:

 

$

558,741

 

 

$

198,989

 

 

$

359,752

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Warrants

 

$

2,350

 

 

$

2,299

 

 

$

—

 

 

$

51

 

 

 

 

December 31, 2024

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

11,549

 

 

$

11,549

 

 

$

—

 

 

$

—

 

 

 

 

11,549

 

 

 

11,549

 

 

 

—

 

 

 

—

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

Certificate of deposits

 

 

12,642

 

 

 

—

 

 

 

12,642

 

 

 

—

 

Commercial paper

 

 

18,227

 

 

 

—

 

 

 

18,227

 

 

 

—

 

U.S. government and government agency securities

 

 

355,170

 

 

 

—

 

 

 

355,170

 

 

 

—

 

Corporate bonds

 

 

80,930

 

 

 

—

 

 

 

80,930

 

 

 

—

 

 

 

 

466,969

 

 

 

—

 

 

 

466,969

 

 

 

—

 

Total financial assets:

 

$

478,518

 

 

$

11,549

 

 

$

466,969

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Warrants

 

$

2,053

 

 

$

1,959

 

 

$

—

 

 

$

94

 

 

Marketable securities consist primarily of U.S. government and government agency, certificate of deposits, commercial paper, corporate bond and municipal securities ("Debt Securities"). Based on the Company’s intentions regarding its marketable securities, all Debt Securities are classified as available-for-sale and are carried at fair value based on the price that would be received upon sale of the security.

The following table provides the amortized cost, aggregate fair value, and unrealized gains (losses) of marketable securities as of June 30, 2025 and December 31, 2024:

 

 

 

June 30, 2025

 

 

 

Amortized
Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

 

 

(In thousands)

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

198,989

 

 

$

—

 

 

$

—

 

 

$

198,989

 

 

 

 

198,989

 

 

 

—

 

 

 

—

 

 

 

198,989

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

Certificate of deposits

 

 

1,964

 

 

 

—

 

 

 

—

 

 

 

1,964

 

Commercial paper

 

 

7,491

 

 

 

3

 

 

 

—

 

 

 

7,494

 

U.S. government and government agency securities

 

 

304,738

 

 

 

210

 

 

 

(970

)

 

 

303,978

 

Corporate bonds

 

 

46,241

 

 

 

123

 

 

 

(48

)

 

 

46,316

 

 

 

 

360,434

 

 

 

336

 

 

 

(1,018

)

 

 

359,752

 

 

 

$

559,423

 

 

$

336

 

 

$

(1,018

)

 

$

558,741

 

 

 

 

December 31, 2024

 

 

 

Amortized
Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

 

 

(In thousands)

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

11,549

 

 

$

—

 

 

$

—

 

 

$

11,549

 

 

 

 

11,549

 

 

 

—

 

 

 

—

 

 

 

11,549

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

Certificate of deposits

 

 

12,628

 

 

 

14

 

 

 

—

 

 

 

12,642

 

Commercial paper

 

 

18,200

 

 

 

27

 

 

 

—

 

 

 

18,227

 

U.S. government and government agency securities

 

 

355,214

 

 

 

436

 

 

 

(480

)

 

 

355,170

 

Corporate bonds

 

 

80,891

 

 

 

119

 

 

 

(80

)

 

 

80,930

 

 

 

 

466,933

 

 

 

596

 

 

 

(560

)

 

 

466,969

 

 

 

$

478,482

 

 

$

596

 

 

$

(560

)

 

$

478,518

 

 

 

For the three and six months ended June 30, 2025 and 2024, there were no unrealized gains or losses on equity securities. The activity related to the net gains (losses) on marketable securities included in other income (expense) on the consolidated statements of operations and comprehensive loss were as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Net realized gains (losses) on available-for-sale securities were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

Realized gains from sales of available-for-sale securities

 

$

—

 

 

$

1

 

 

$

3

 

 

$

1

 

Realized losses from sales of available-for-sale securities

 

 

(1

)

 

 

(8

)

 

 

(1

)

 

 

(7

)

Total (losses) gain on marketable securities

 

$

(1

)

 

$

(7

)

 

$

2

 

 

$

(6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following tables provide marketable securities with continuous unrealized losses for less than 12 months and 12 months or greater and the related fair values as of June 30, 2025 and December 31, 2024 were as follows:

 

 

 

June 30, 2025

 

 

 

Less than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

Total

 

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

 

 

(In thousands)

 

Certificate of deposits

 

$

1,097

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,097

 

 

$

—

 

Commercial paper

 

 

2,459

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,459

 

 

 

—

 

U.S. government and government agency securities

 

 

174,384

 

 

 

(970

)

 

 

—

 

 

 

—

 

 

 

174,384

 

 

 

(970

)

Corporate bonds

 

 

10,163

 

 

 

(48

)

 

 

—

 

 

 

—

 

 

 

10,163

 

 

 

(48

)

 

 

$

188,103

 

 

$

(1,018

)

 

$

—

 

 

$

—

 

 

$

188,103

 

 

$

(1,018

)

 

 

 

December 31, 2024

 

 

 

Less than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

Total

 

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

 

 

(In thousands)

 

Certificate of deposits

 

$

243

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

243

 

 

$

—

 

U.S. government and government agency securities

 

 

111,021

 

 

 

(398

)

 

 

45,099

 

 

 

(82

)

 

 

156,120

 

 

 

(480

)

Corporate bonds

 

 

20,659

 

 

 

(33

)

 

 

9,911

 

 

 

(47

)

 

 

30,570

 

 

 

(80

)

 

 

$

131,923

 

 

$

(431

)

 

$

55,010

 

 

$

(129

)

 

$

186,933

 

 

$

(560

)

Unrealized losses from the marketable securities are primarily attributable to changes in interest rates and represent temporary impairments due to general market factors. The Company has not recognized an allowance for expected credit losses related to available-for-sale investments as the Company has not identified any unrealized losses for these investments attributable to credit factors during the three and six months ended June 30, 2025. As of June 30, 2025, the Company does not intend to sell these securities nor does the Company believe that it will be required to sell these securities before the recovery of their amortized cost basis.

Maturity information based on fair value is as follows as of June 30, 2025:

 

 

 

Within one year

 

 

After one year
through five years

 

 

Total

 

 

 

(In thousands)

 

Certificate of deposits

 

$

1,964

 

 

$

—

 

 

$

1,964

 

Commercial paper

 

 

7,494

 

 

 

—

 

 

 

7,494

 

U.S. government and government agency securities

 

 

222,711

 

 

 

81,267

 

 

 

303,978

 

Corporate bonds

 

 

32,587

 

 

 

13,729

 

 

 

46,316

 

 

$

264,756

 

 

$

94,996

 

 

$

359,752