Fair Value Measurements |
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| Fair Value Measurements | 6. Fair Value Measurements Urica’s Equity Investment in Crystalys Urica values its equity investment in Crystalys using an option pricing model backsolve method and level 3 inputs. During the three and six months ended June 30, 2026, the Company recognized $10.7 million and $11.8 million, respectively, of other income in the unaudited condensed consolidated statement of operations related to additional shares received pursuant to the anti-dilution provisions and changes in the estimated fair value of the investment due to Crystalys’ Series B financing. The following inputs were utilized to derive the value: risk free rate of return: 4.24%; volatility: 80%; and a discount for lack of marketability: 30.3%. There are significant judgments and estimates inherent in the determination of the fair value, such as those regarding the selection of comparable companies used in estimating volatility, and the probability of possible future events. Such estimates involve inherent uncertainties and the application of significant judgment. Changes in judgments could have a material impact on our results of operations. At June 30, 2026, the total fair value of Urica’s investment in Crystalys was approximately $26.9 million,which also represents the cumulative unrealized gain since acquisition of the investment. Fair Value of Aevitas The Company valued its retained investment in Aevitas, which is accounted for as an equity method investment for which the Company elected the fair value option, and estimated the fair value using level 3 inputs to be $2.6 million. The Company has not recognized any gains, losses, or impairments on the investment in 2026, 2025, or on a cumulative basis. Common Stock Warrant Liabilities
Avenue Avenue has previously issued freestanding warrants to purchase shares of its common stock in connection with financing activities. Avenue’s outstanding warrants to purchase common stock were originally issued in October 2022 (the “October 2022 Warrants”). The October 2022 Warrants are classified as liabilities on the balance sheet as they contain terms for redemption of the underlying security that are outside of its control. In connection with the Avenue January 2023 registered direct offering in January 2023, the down-round price protection feature was triggered and the exercise price for the October 2022 Warrants was permanently adjusted to $116.25, which was the offering price for the Avenue registered direct offering in January 2023. The Black-Scholes model was used to value the October 2022 Warrants and at June 30, 2026 and December 31, 2025 the liability associated with the October 2022 Warrants was nil and $1,000, respectively. A summary of the weighted average (in aggregate) significant unobservable inputs (Level 3 inputs) used in measuring the Avenue warrant liability that are categorized within Level 3 of the fair value hierarchy was as follows:
Partner Company Derivative Liability The partner company derivative liability associated with Cyprium’s 9.375% Series A Cumulative Redeemable Perpetual Preferred Stock (“Cyprium PPS”) increased in fair value by $7.1 million during the three months ended March 31, 2026. The increase in fair value was due to the settlement of the derivative in connection with the redemption of the Cyprium PPS (Level 1) and the liability was extinguished in connection with the redemption of the PPS (see Note 15) during the three months ended March 31, 2026. As of June 30, 2026, no transfers occurred between Level , Level , and Level 3 instruments. |
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