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Fair Value Measurement
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurement
3.
Fair Value Measurement

The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):

 

 

 

As of March 31, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

853,599

 

 

$

-

 

 

$

-

 

Total assets measured at fair value

 

$

853,599

 

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Private placement warrant liability

 

 

-

 

 

 

-

 

 

 

44,453

 

Total liabilities measured at fair value

 

$

-

 

 

$

-

 

 

$

44,453

 

 

 

 

As of December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

510,424

 

 

$

-

 

 

$

-

 

Total assets measured at fair value

 

$

510,424

 

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Private placement warrant liability

 

 

-

 

 

 

-

 

 

 

41,248

 

Total liabilities measured at fair value

 

$

-

 

 

$

-

 

 

$

41,248

 

 

As of March 31, 2025 and December 31, 2024, the Company had $874.5 million and $567.5 million of cash and cash equivalents and restricted cash, respectively, of which $853.6 million and $510.4 million, respectively, is classified as cash equivalents, which consists principally of short-term money market funds with original maturities of 90 days or less. As of March 31, 2025, restricted cash of $0.7 million represents deposits against the bank guaranty issued to the landlords for lease of properties. As of December 31, 2024, restricted cash of $2.5 million also included a deposit into an interest reserve escrow account for a terminated senior secured credit facility. For certain instruments, including cash, accounts payable, and accrued expenses, it was estimated that the carrying amount approximated fair value because of the short maturities of these instruments.

As of March 31, 2025 and December 31, 2024, warrant liabilities were comprised of private placement warrants (“Private Placement Warrants”), which have been classified as Level 3 due to the use of historical volatility of the Company’s shares and implied volatility derived from options on the Company’s shares. Warrant liabilities are described in detail in Note 7 Warrant Liabilities.

 

The Private Placement Warrants are valued using a Black-Scholes-Merton model. The Company’s Black-Scholes-Merton model to value Private Placement Warrants required the use of the following subjective assumption inputs:

•
As of March 31, 2025 and December 31, 2024, the risk-free rate assumption was based on the one- and two-year U.S. Treasury rates as the estimated time to expiration was 1.02 years and 1.26 years, respectively. An increase in the risk-free interest rate, in isolation, would result in an increase in the fair value measurement of the warrant liabilities and vice versa.
•
As of March 31, 2025 and December 31, 2024, the expected volatility assumption was based on an average of the historical volatility of the Company’s shares and the implied volatility of one-year options on the Company’s shares, which was 118.2% and 112.7%, respectively.