v3.24.2.u1
Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2024
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Financial Instruments Measured at Fair Value on Recurring Basis The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):

Balance as of June 30, 2024

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (i)

 

$

54,078

 

 

$

—

 

 

$

—

 

 

$

54,078

 

Agency bonds (ii)

 

 

—

 

 

 

20,966

 

 

 

—

 

 

 

20,966

 

Treasury bonds (ii)

 

 

178,025

 

 

 

—

 

 

 

—

 

 

 

178,025

 

Total assets

 

$

232,103

 

 

$

20,966

 

 

$

—

 

 

$

253,069

 

 

Balance as of December 31, 2023

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (i)

 

$

82,886

 

 

$

—

 

 

$

—

 

 

$

82,886

 

Agency bonds (ii)

 

 

—

 

 

 

99,054

 

 

 

—

 

 

 

99,054

 

Commercial paper (ii)

 

 

—

 

 

 

22,374

 

 

 

—

 

 

 

22,374

 

Corporate notes (ii)

 

 

—

 

 

 

3,490

 

 

 

—

 

 

 

3,490

 

Treasury bonds (ii)

 

 

93,588

 

 

 

—

 

 

 

—

 

 

 

93,588

 

Total assets

 

$

176,474

 

 

$

124,918

 

 

$

—

 

 

$

301,392

 

 

(i)
Included in cash and cash equivalents on the condensed consolidated balance sheets.
(ii)
Included in short-term investments on the condensed consolidated balance sheets.
Summary of Assumptions and Significant Unobservable Inputs

Significant unobservable inputs for the contingent consideration are as follows:

 

Contingent Liability

 

Fair Value at
June 30, 2024

 

Valuation Technique

 

Unobservable Input

 

Range

Product Development

 

$1,668

 

Probability-Weighted

 

Probability of Payment

 

75%

Milestone

 

 

 

Average Discount

 

Risk-Free Rate

 

5.1% - 5.3%

 

 

 

 

Cash Flow

 

Credit Spread

 

7.3%

 

 

 

 

 

 

Projected Year of Payment

 

2025

Revenue Milestone

 

$14,856

 

Monte Carlo Simulation

 

Discount Rate

 

11.8% - 12.5%

 

 

 

 

 

 

Revenue Volatility

 

13%

 

 

 

 

 

 

Projected Year of Payment

 

2026 - 2027

 

Contingent Liability

 

Fair Value at December 31, 2023

 

Valuation Technique

 

Unobservable Input

 

Range

Regulatory Approval

 

$4,964

 

Probability-Weighted

 

Probability of Payment

 

80%

Milestone

 

 

 

Average Discount

 

Risk-Free Rate

 

5.2% — 5.3%

 

 

 

 

Cash Flow

 

Credit Spread

 

4.3%

 

 

 

 

 

 

Projected Year of Payment

 

2024

Product Development

 

$1,677

 

Probability-Weighted

 

Probability of Payment

 

50%

Milestone

 

 

 

Average Discount

 

Risk-Free Rate

 

4.9% — 5.1%

 

 

 

 

Cash Flow

 

Credit Spread

 

4.3%

 

 

 

 

 

 

Projected Year of Payment

 

2024 — 2025

Revenue Milestone

 

$15,452

 

Monte Carlo Simulation

 

Discount Rate

 

8.7% — 9.3%

 

 

 

 

 

 

Revenue Volatility

 

17.0%

 

 

 

 

 

 

Projected Year of Payment

 

2025 — 2027

Schedule of Changes in Fair Value of Contingent Consideration Liability Changes in the fair value of the contingent consideration liability for the six months ended June 30, 2024 were as follows (in thousands):

 

Balance as of December 31, 2023

 

$

22,093

 

Change in fair value of contingent consideration

 

 

4,431

 

Contingent consideration payments

 

 

(9,804

)

Balance as of June 30, 2024

 

$

16,720

 

Warrant [Member]  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Summary of Assumptions and Significant Unobservable Inputs Assumptions for the warrant liability are as follows:

 

 

 

June 30, 2024

 

December 31, 2023

Expected term (in years)

 

5.4

 

6.0

Expected volatility

 

53%

 

53%

Risk-free interest rate

 

4.08%

 

3.50%

Dividend yield

 

0%

 

0%