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

4. Fair Value Measurements

The following tables present the Company’s fair value hierarchy for assets measured at fair value on a recurring basis (in thousands):

 

 

 

Fair Value Measurements at June 30, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

99,723

 

 

$

—

 

 

$

—

 

 

$

99,723

 

Total cash equivalents

 

 

99,723

 

 

 

—

 

 

 

—

 

 

 

99,723

 

Cash

 

 

4,442

 

 

 

—

 

 

 

—

 

 

 

4,442

 

Total cash and cash equivalents

 

$

104,165

 

 

$

—

 

 

$

—

 

 

$

104,165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2024

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

166,464

 

 

$

—

 

 

$

—

 

 

$

166,464

 

Total cash equivalents

 

 

166,464

 

 

 

—

 

 

 

—

 

 

 

166,464

 

Cash

 

 

1,610

 

 

 

—

 

 

 

—

 

 

 

1,610

 

Total cash and cash equivalents

 

$

168,074

 

 

$

—

 

 

$

—

 

 

$

168,074

 

 

As of June 30, 2025, the fair value of the liability related to sale of future royalties is based on the Company's current estimates of future royalties expected to be paid to Baker Bros. Advisors, LP (“BBA”), which are considered Level 3 inputs.

As discussed in Notes 2 and 5, the Company entered into an agreement in March 2025 to sublease its building at 1200 Page Mill Road, which triggered an evaluation of the carrying amount of the related right-of-use asset. The Company determined that the carrying amount was no longer recoverable and wrote it down to its estimated fair value, which resulted in a non-cash lease impairment expense of $1.9 million recorded during the first quarter of 2025. Estimated fair value was based on expected sublease rental income, which reflected current sublease market conditions, discounted at a market rate of return on similar assets. The estimates and assumptions used are considered Level 3 inputs.