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Fair Value Measurement
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
Assets and liabilities recorded at fair value on a recurring basis on the condensed balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows:
Level 1—Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.
Level 2—Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
There were no transfers between Level 1, Level 2 or Level 3 of the fair value hierarchy during the periods presented.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table sets forth the Company's financial instruments on the balance sheet that were measured at fair value on a recurring basis for the period indicated by level within the fair value hierarchy (in millions):
June 30, 2024
Level 1
Level 2
Level 3
Total
Financial assets:
Money market funds
$145.9 $— $— $145.9 
Total
$145.9 $— $— $145.9 
Financial liabilities:
Warrants
$— $— $20.4 $20.4 
Total
$— $— $20.4 $20.4 
As of December 31, 2023, the Company held $124.8 million in money market funds. Such amounts are considered Level 1 and the Company held no other assets or liabilities that are measured at fair value on a recurring basis.
Fair Value Measurements of Other Financial Instruments
The following table presents the carrying amounts and estimated fair values of the financial instruments that are not recorded at fair value on the condensed balance sheets (in millions):
June 30, 2024December 31, 2023
Net Carrying AmountEstimated Fair ValueNet Carrying AmountEstimated Fair Value
2025 Convertible senior notes$26.6 $25.0 $170.6 $128.2 
2028 Convertible senior notes$276.2 $130.3 $281.9 $100.0 
The principal amounts of its 3.00% Convertible Senior Notes due 2025 ("2025 Notes") and 1.00% Convertible Senior Notes due 2028 (the "2028 Notes" and, together with the 2025 Notes, the "Convertible Senior Notes") are $26.7 million and $281.0 million, respectively. The difference between the principal amounts of the Convertible Senior Notes and their respective net carrying amounts are the unamortized debt issuance costs (See Note 7).
As of June 30, 2024, the fair value of the 2025 Notes and the 2028 Notes, which differs from their carrying value is determined based on the quoted bid prices of the Convertible Senior Notes in an over-the-counter market using the latest trading information of the reporting period.
Fair Value Measurement of Warrants
In connection with the Note Exchange (defined in Note 6 – Non-convertible Notes, Net), the Company issued warrants (the "Warrants") to acquire an aggregate of up to 7,894,737 shares (subject to adjustment in accordance with the terms of the Warrants) of the Company’s common stock to the holders of the Exchanged Notes at an exercise price of $1.71, subject to certain cashless exercise provisions and adjustment in accordance with the terms of the Warrants. The Warrants are exercisable from the date of issuance until they expire on March 1, 2029. The Warrants are accounted for as liabilities under ASC 480 since the warrants may be required to be settled in cash in case of a fundamental change, which could occur outside of the Company’s control. Changes in fair value are recognized within change in fair value of warrant liability on the Company’s condensed statement of operations. Issuance costs allocated to the Warrants are included in selling, general and administrative on the Company’s condensed statement of operations.
The aggregate fair value of the Warrants upon issuance and as of June 30, 2024 was $10.4 million and $20.4 million, respectively, determined using a Black-Scholes Model with the following inputs:
On issuanceJune 30, 2024
Stock price$1.77$3.19
Exercise price$1.71$1.71
Expected life in years
5.004.67
Expected volatility
94.84 %95.73 %
Expected dividends
— %— %
Discount rate
4.26 %4.33 %

The following table presents the activity related to the Warrants during the three and six months ended June 30, 2024.
Three Months Ended June 30, 2024Six Months Ended June 30, 2024
Opening balance
$26,000 $— 
Issuance of warrants
— 10,417 
Change in fair value
(5,630)9,953 
Balance as of June 30, 2024
$20,370 $20,370