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

3. Fair Value Measurements

The Company measures the fair value of money market funds based on quoted prices in active markets for identical securities. Marketable securities include U.S. treasury bills and U.S. government agency securities that are valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data.

The carrying amounts reflected in the consolidated balance sheets for cash, prepaid expenses and other current assets, accounts payable and accrued expenses approximate their fair values, due to their short-term nature.

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 were as follows (in thousands):

 

 

Total

 

 

Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

   Money market funds

 

$

32,444

 

 

$

32,444

 

 

$

—

 

 

$

—

 

Marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

   U.S. government agency securities

 

 

86,014

 

 

 

—

 

 

 

86,014

 

 

 

—

 

MS APA asset

 

 

1,421

 

 

 

—

 

 

 

—

 

 

 

1,421

 

Total financial assets

 

$

119,879

 

 

$

32,444

 

 

$

86,014

 

 

$

1,421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

CVR liability

 

$

1,421

 

 

$

—

 

 

$

—

 

 

$

1,421

 

Total financial liabilities

 

$

1,421

 

 

$

—

 

 

$

—

 

 

$

1,421

 

 

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 were as follows (in thousands):

 

 

Total

 

 

Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

   Money market funds

 

$

55,155

 

 

$

55,155

 

 

$

—

 

 

$

—

 

Marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

   U.S. treasury bills

 

 

22,238

 

 

 

—

 

 

 

22,238

 

 

 

—

 

   U.S. government agency securities

 

 

85,173

 

 

 

—

 

 

 

85,173

 

 

 

—

 

MS APA asset

 

 

1,472

 

 

 

—

 

 

 

—

 

 

 

1,472

 

Total financial assets

 

$

164,038

 

 

$

55,155

 

 

$

107,411

 

 

$

1,472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

CVR liability

 

$

1,472

 

 

$

—

 

 

$

—

 

 

$

1,472

 

Total financial liabilities

 

$

1,472

 

 

$

—

 

 

$

—

 

 

$

1,472

 

The fair value of the contingent value right ("CVR") liability and the asset purchase agreement relating to Frequency’s multiple sclerosis program (the "MS APA") are based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy. In determining the fair value of the CVR liability and the MS APA asset, the Company used the income approach, primarily discounted cash flow models. The discounted cash flow models require the use of significant judgment, estimates and assumptions, including the probability of technical and regulatory success, and discount rates. For the six months ended June 30, 2025, the aggregate change in fair value of the CVR liability and MS APA asset was $0.1 million. For the year ended December 31, 2024, the aggregate change in fair value of the CVR liability and MS APA asset was $0.1 million.

There were no changes in valuation techniques, nor were there any transfers among the fair value hierarchy levels during the six months ended June 30, 2025 or during the year ended December 31, 2024.