| Fair Value Measurements |
Note 5. Fair Value Measurements The following tables show the Company’s financial assets measured at fair value on a recurring basis and the level of inputs used in such measurements as of March 31, 2025 and December 31, 2024 (in thousands):
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March 31, 2025 |
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Adjusted Cost |
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Unrealized Gains |
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Unrealized Losses |
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Fair Value |
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Fair Value Level |
Assets |
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Cash and cash equivalents: |
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Cash |
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$ |
1,321 |
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$ |
— |
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$ |
— |
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$ |
1,321 |
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Money market funds |
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16,478 |
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— |
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— |
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16,478 |
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Level 1 |
Commercial paper |
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53,213 |
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|
— |
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(11 |
) |
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53,202 |
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Level 2 |
Total cash and cash equivalents |
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71,012 |
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|
— |
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(11 |
) |
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71,001 |
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Short-term investments: |
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Commercial paper |
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11,872 |
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|
— |
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(4 |
) |
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11,868 |
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Level 2 |
Corporate debt securities |
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|
499 |
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— |
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— |
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|
499 |
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Level 2 |
U.S. agency securities |
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2,817 |
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— |
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— |
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2,817 |
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Level 2 |
U.S. government securities |
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|
99,493 |
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17 |
|
|
|
(7 |
) |
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99,503 |
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Level 2 |
Total short-term investments |
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114,681 |
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17 |
|
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(11 |
) |
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114,687 |
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Total assets measured at fair value |
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$ |
185,693 |
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$ |
17 |
|
|
$ |
(22 |
) |
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$ |
185,688 |
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December 31, 2024 |
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Adjusted Cost |
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Unrealized Gains |
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Unrealized Losses |
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Fair Value |
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Fair Value Level |
Assets |
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Cash and cash equivalents: |
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Cash |
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$ |
1,152 |
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$ |
— |
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$ |
— |
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$ |
1,152 |
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Money market funds |
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|
44,524 |
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— |
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— |
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44,524 |
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Level 1 |
Commercial paper |
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39,291 |
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— |
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(6 |
) |
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39,285 |
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Level 2 |
U.S. agency securities |
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6,453 |
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|
1 |
|
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— |
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6,454 |
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Level 2 |
Total cash and cash equivalents |
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91,420 |
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|
1 |
|
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(6 |
) |
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91,415 |
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Short-term investments: |
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Commercial paper |
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8,697 |
|
|
|
1 |
|
|
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(1 |
) |
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|
8,697 |
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Level 2 |
Corporate debt securities |
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|
498 |
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|
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— |
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— |
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|
498 |
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Level 2 |
U.S. agency securities |
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2,330 |
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— |
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— |
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|
2,330 |
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Level 2 |
U.S. government securities |
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|
82,042 |
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|
33 |
|
|
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(6 |
) |
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|
82,069 |
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Level 2 |
Total short-term investments |
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93,567 |
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|
34 |
|
|
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(7 |
) |
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93,594 |
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Total assets measured at fair value |
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$ |
184,987 |
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|
$ |
35 |
|
|
$ |
(13 |
) |
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$ |
185,009 |
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The amortized costs and fair value of marketable debt securities (excluding cash and money market funds) by contractual maturity, at March 31, 2025 are as follows (in thousands):
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March 31, 2025 |
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Amortized Cost |
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Fair Value |
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Less than 1 year |
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$ |
160,931 |
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$ |
160,924 |
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1 to 5 years |
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|
6,963 |
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|
6,965 |
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Total |
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$ |
167,894 |
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|
$ |
167,889 |
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No security has been in a continuous unrealized loss position for more than 12 months and the Company does not consider any of its marketable debt securities to be impaired. Tempus Warrants The Black-Scholes option-pricing model was used to estimate fair value of the warrants issued to Tempus at the date of issuance, November 28, 2023, and at each subsequent balance sheet date prior to their exercise in full in August 2024. Assumptions used are listed below, which are Level 3 fair value inputs. Expected term was equal to the then-remaining contractual periods of each of the two warrants. Expected volatility was based on the Company's actual historical volatility over the expected terms of the warrants. The risk-free interest rate was based on the U.S. Treasury yield curve over the expected terms of the warrants. Refer to Note 8. Related Party Transactions for further information about the warrants issued to Tempus.
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As of March 31,
2024 |
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Expected term (in years) |
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0.75 - 1.75 |
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Volatility |
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103.91 - 106.32% |
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Risk-free interest rate |
|
4.70 - 5.21% |
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Dividend yield |
|
–% |
|
Total fair value of Tempus Warrants (in thousands) |
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$ |
5,262 |
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The following table sets forth a summary of the changes in fair value of the Tempus Warrants, which are classified as Level 3 financial instruments (in thousands):
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Warrant
Liabilities |
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Beginning balance — December 31, 2023 |
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$ |
10,027 |
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Change in fair value—recognized as non-cash gain within Other income (expense), net |
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|
(4,765 |
) |
Ending balance — March 31, 2024 |
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$ |
5,262 |
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