v3.26.1
Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments
Note 8. Fair Value of Financial Instruments
Recurring Fair Value Measurements
The following tables present the Company’s fair value hierarchy for its financial instruments that are measured at fair value on a recurring basis (in thousands):
As of March 31, 2026TotalQuoted prices in active markets (Level 1)
Significant other observable inputs
(Level 2)
Significant unobservable inputs
(Level 3)
Financial assets:
Cash equivalents:
Money market funds (1)$22,475 $22,475 $— $— 
Total cash equivalents22,475 22,475 — — 
Marketable securities:
Commercial paper6,473 — 6,473 — 
U.S. Treasuries25,363 — 25,363 — 
U.S. Government agency bonds6,026 — 6,026 — 
Corporate bonds25,221 — 25,221 — 
Total marketable securities63,083 — 63,083 — 
Total financial assets$85,558 $22,475 $63,083 $— 
Financial liabilities:
Contingent liabilities (2)$4,183 $— $— $4,183 
Total financial liabilities$4,183 $— $— $4,183 
As of December 31, 2025TotalQuoted prices in active markets (Level 1)
Significant other observable inputs
(Level 2)
Significant unobservable inputs
(Level 3)
Financial assets:
Cash equivalents:
Money market funds (1)$17,219 $17,219 $— $— 
Total cash equivalents17,219 17,219 — — 
Marketable securities:
Commercial paper12,877 — 12,877 — 
U.S. Treasuries29,650 — 29,650 — 
U.S. Government agency bonds13,594 — 13,594 — 
Corporate bonds32,272 — 32,272 — 
Total marketable securities88,393 — 88,393 — 
Total financial assets$105,612 $17,219 $88,393 $— 
Financial liabilities:
Contingent liabilities (2)$5,684 $— $— $5,684 
Total financial liabilities$5,684 $— $— $5,684 
(1)Included in cash and cash equivalents on the Consolidated Balance Sheets.
(2)The Company’s recurring fair value measurements using Level 3 inputs relate to the Company’s contingent consideration liability from the acquisition of Emission and the contingent liability assumed in the acquisition of Akoya.
Cash equivalents and marketable securities classified as Level 2 financial assets are initially valued at their purchase price and subsequently valued at the end of each reporting period utilizing third party pricing services or other observable data. The pricing services utilize industry standard valuation methods, including both income and market-based approaches, and observable market inputs to determine the fair value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates, and other industry and economic events.
Level 3 Financial Instruments
The following tables present the changes in the Company's Level 3 financial instruments measured at fair value on a recurring basis:
Level 3 Liabilities
Emission (1)PKI License (2)Total
Balance as of December 31, 2025$1,988 $3,696 $5,684 
Change in fair value of contingent liabilities(322)(1,179)(1,501)
Balance as of March 31, 2026$1,666 $2,517 $4,183 

Level 3 Liabilities
Emission (1)PKI License (2)Total
Balance as of December 31, 2024
$— $— $— 
Acquisition of Emission - Earnout 26,612 — 6,612 
Change in fair value of contingent liabilities379 — 379 
Balance as of March 31, 2025
$6,991 $— $6,991 
(1)Earnout 2 requires additional consideration to be paid to the selling shareholders based on the amount and timing of certain performance targets. Earnout 2 is measured and paid over a five year period ending December 2029.
(2)As part of Akoya's 2018 acquisition of the Quantitative Pathology Solutions division of Perkin Elmer, Inc., subsequently known as Revvity, Inc. ("PKI"), Akoya entered into a license agreement with PKI (the "PKI License"). The Company recognizes the assumed contingent liability at fair value in accordance with ASC 805. The PKI License is measured and paid over the remaining eight year period ending March 2033.
Monte-Carlo simulations and discounted cash flow analyses were used to determine the fair values, including the following significant unobservable inputs: projected revenue, a risk adjusted discount rate, and revenue volatility. Changes in fair value subsequent to the acquisition date were due to updated valuation inputs. Increases or decreases in the inputs would have resulted in a higher or lower fair value measurements.
The range of outcomes payable for Earnout 2 is zero to $50.0 million. It is not possible to estimate a range of outcomes payable for the PKI License as there is no cap on the amount that could be earned.
The fair value of the contingent liabilities are recorded in accrued expenses and other current liabilities and non-current portion of contingent liabilities on the Consolidated Balance Sheets. Changes in fair value are recorded in change in fair value of contingent liabilities on the Consolidated Statements of Operations.
Other Fair Value Disclosures
During the three months ended March 31, 2026 and 2025, the Company did not transfer financial assets between levels of the fair value hierarchy. Additionally, there have been no changes to the valuation techniques for Level 2 or Level 3 financial assets or liabilities.