| Fair Value Assets and Liabilities Measured on Recurring Basis |
The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy:
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September 30, 2026 |
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Valuation
Hierarchy |
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Amortized Cost |
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Gross
Unrealized
Holding Gains |
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|
Gross
Unrealized
Holding Losses |
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Estimated
Fair Value |
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(in thousands) |
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Financial assets: |
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|
Cash equivalents: |
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Money market funds |
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Level 1 |
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$ |
30,412 |
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$ |
- |
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$ |
- |
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$ |
30,412 |
|
U.S. government and agency securities |
|
Level 2 |
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|
3,405 |
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|
|
- |
|
|
|
(1 |
) |
|
|
3,404 |
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Corporate debt securities |
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Level 2 |
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4,212 |
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- |
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- |
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|
4,212 |
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Total cash equivalents |
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38,029 |
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- |
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(1 |
) |
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38,028 |
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Short-term marketable securities: |
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|
|
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U.S. government and agency securities |
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Level 2 |
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54,477 |
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- |
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(64 |
) |
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54,413 |
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Corporate debt securities |
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Level 2 |
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26,250 |
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- |
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(39 |
) |
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|
26,211 |
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Total short-term marketable securities |
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|
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80,727 |
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- |
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(103 |
) |
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|
80,624 |
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Total financial assets |
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$ |
118,756 |
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$ |
- |
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$ |
(104 |
) |
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$ |
118,652 |
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Financial liabilities: |
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Short-term financial liabilities: |
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Contingent consideration |
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Level 3 |
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$ |
40,647 |
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$ |
- |
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$ |
- |
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$ |
40,647 |
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Total short-term financial liabilities |
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40,647 |
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- |
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- |
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40,647 |
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Long-term financial liabilities: |
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Contingent consideration |
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Level 3 |
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54,710 |
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- |
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- |
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54,710 |
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Success payment liabilities |
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Level 3 |
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16,566 |
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- |
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- |
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16,566 |
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Total long-term financial liabilities |
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71,276 |
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- |
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- |
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71,276 |
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Total financial liabilities |
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$ |
111,923 |
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$ |
- |
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$ |
- |
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$ |
111,923 |
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December 31, 2025 |
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Valuation
Hierarchy |
|
Amortized Cost |
|
|
Gross
Unrealized
Holding Gains |
|
|
Gross
Unrealized
Holding Losses |
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|
Estimated
Fair Value |
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|
|
|
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(in thousands) |
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Financial assets: |
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Cash equivalents: |
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Money market funds |
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Level 1 |
|
$ |
63,000 |
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|
$ |
- |
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$ |
- |
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$ |
63,000 |
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U.S. government and agency securities |
|
Level 2 |
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|
6,528 |
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- |
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- |
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|
6,528 |
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Total cash equivalents |
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69,528 |
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- |
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- |
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69,528 |
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Short-term marketable securities: |
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U.S. government and agency securities |
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Level 2 |
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65,082 |
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29 |
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- |
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65,111 |
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Corporate debt securities |
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Level 2 |
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|
1,402 |
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- |
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(1 |
) |
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|
1,401 |
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Total short-term marketable securities |
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66,484 |
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|
29 |
|
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|
(1 |
) |
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|
66,512 |
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Total financial assets |
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$ |
136,012 |
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|
$ |
29 |
|
|
$ |
(1 |
) |
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$ |
136,040 |
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Financial liabilities: |
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Short-term financial liabilities: |
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|
|
|
|
|
|
|
|
|
|
|
|
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Contingent consideration |
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Level 3 |
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$ |
40,200 |
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$ |
- |
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$ |
- |
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$ |
40,200 |
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Total short-term financial liabilities |
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40,200 |
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- |
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- |
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|
40,200 |
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Long-term financial liabilities: |
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Contingent consideration |
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Level 3 |
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83,518 |
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|
- |
|
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|
- |
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|
83,518 |
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Success payment liabilities |
|
Level 3 |
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|
19,238 |
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|
- |
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|
- |
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|
19,238 |
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Total long-term financial liabilities |
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|
|
102,756 |
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|
- |
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- |
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|
102,756 |
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Total financial liabilities |
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$ |
142,956 |
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$ |
- |
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$ |
- |
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$ |
142,956 |
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| Changes in Estimated Fair Value of Level 3 Financial Liabilities |
The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities:
|
|
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Contingent
Consideration |
|
|
Cobalt
Success Payment
Liability |
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|
Harvard
Success Payment
Liability |
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(in thousands) |
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Balance as of December 31, 2025 |
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$ |
123,718 |
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|
$ |
17,875 |
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|
$ |
1,363 |
|
Changes in fair value – expense (gain) |
|
|
10,745 |
|
|
|
(1,823 |
) |
|
|
(489 |
) |
Balance as of March 31, 2026 |
|
|
134,463 |
|
|
|
16,052 |
|
|
|
874 |
|
Changes in fair value – expense |
|
|
16,362 |
|
|
|
7,167 |
|
|
|
384 |
|
Balance as of June 30, 2026 |
|
|
150,825 |
|
|
|
23,219 |
|
|
|
1,258 |
|
Changes in fair value – gain |
|
|
(55,468 |
) |
|
|
(7,629 |
) |
|
|
(282 |
) |
Balance as of September 30, 2026 |
|
$ |
95,357 |
|
|
$ |
15,590 |
|
|
$ |
976 |
|
|