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Fair Value Measurements and Marketable Securities Available-for-Sale
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Marketable Securities Available for Sale

NOTE 4. FAIR VALUE MEASUREMENTS AND MARKETABLE SECURITIES

The Company provides disclosure of financial assets and financial liabilities that are carried at fair value based on the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements may be classified based on the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities using the following three levels:

Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2 — Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.) and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3 — Unobservable inputs that reflect the Company’s estimates of the assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available, including its own data.

The following table presents information about the Company’s marketable securities and the Warrant liability as of December 31, 2024 and 2023, measured at fair value on a recurring basis, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. The Company’s Warrant liabilities are

included within the Level 1 and Level 3 fair value hierarchy. The fair value of the Consideration, Public and Forward Purchase Warrants is determined using the closing price of the warrants on the NYSE market. The fair value of the Private Placement Warrants is determined using the Black-Scholes option pricing formula. The primary unobservable input utilized in determining the fair value of the Private Warrants is the expected volatility. The expected volatility was estimated considering observable Public Warrant pricing, the Company's own historical volatility and the volatility of guideline public companies. There have not been any transfers between the levels during the periods.

 

 

 

December 31, 2024

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

11,549

 

 

$

11,549

 

 

$

—

 

 

$

—

 

 

 

 

11,549

 

 

 

11,549

 

 

 

—

 

 

 

—

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

Certificate of deposits

 

 

12,642

 

 

 

—

 

 

 

12,642

 

 

 

—

 

Commercial paper

 

 

18,227

 

 

 

—

 

 

 

18,227

 

 

 

—

 

U.S. government and government agency securities

 

 

355,170

 

 

 

—

 

 

 

355,170

 

 

 

—

 

Corporate bonds

 

 

80,930

 

 

 

—

 

 

 

80,930

 

 

 

—

 

 

 

 

466,969

 

 

 

—

 

 

 

466,969

 

 

 

—

 

Total financial assets:

 

$

478,518

 

 

$

11,549

 

 

$

466,969

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Warrants

 

$

2,053

 

 

$

1,959

 

 

$

—

 

 

$

94

 

 

 

 

December 31, 2023

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

20,574

 

 

$

20,574

 

 

$

—

 

 

$

—

 

U.S. government and government agency securities

 

 

4,988

 

 

 

—

 

 

 

4,988

 

 

 

—

 

Corporate bonds

 

 

947

 

 

 

—

 

 

 

947

 

 

 

—

 

 

 

 

26,509

 

 

 

20,574

 

 

 

5,935

 

 

 

—

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

Certificate of deposits

 

 

10,176

 

 

 

—

 

 

 

10,176

 

 

 

—

 

Commercial paper

 

 

23,628

 

 

 

—

 

 

 

23,628

 

 

 

—

 

U.S. government and government agency securities

 

 

453,175

 

 

 

—

 

 

 

453,175

 

 

 

—

 

Corporate bonds

 

 

81,585

 

 

 

—

 

 

 

81,585

 

 

 

—

 

 

 

 

568,564

 

 

 

—

 

 

 

568,564

 

 

 

—

 

Total financial assets:

 

$

595,073

 

 

$

20,574

 

 

$

574,499

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Warrants

 

$

353

 

 

$

338

 

 

$

—

 

 

$

15

 

Marketable securities consist primarily of U.S. government and government agency, certificate of deposits, commercial paper, corporate bond and municipal securities ("Debt Securities"). Based on the Company’s intentions regarding its marketable securities, all Debt Securities are classified as available-for-sale and are carried at fair value based on the price that would be received upon sale of the security.

The following table provides the amortized cost, aggregate fair value, and unrealized gains (losses) of marketable securities as of December 31, 2024 and December 31, 2023:

 

 

 

December 31, 2024

 

 

 

Amortized
Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

 

Fair Value

 

 

 

(In thousands)

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

11,549

 

 

$

—

 

 

$

—

 

 

 

$

11,549

 

 

 

 

11,549

 

 

 

—

 

 

 

—

 

 

 

 

11,549

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificate of deposits

 

 

12,628

 

 

 

14

 

 

 

—

 

 

—

 

 

12,642

 

Commercial paper

 

 

18,200

 

 

 

27

 

 

 

—

 

 

 

 

18,227

 

U.S. government and government agency securities

 

 

355,214

 

 

 

436

 

 

 

(480

)

 

 

 

355,170

 

Corporate bonds

 

 

80,891

 

 

 

119

 

 

 

(80

)

 

 

 

80,930

 

 

 

 

466,933

 

 

 

596

 

 

 

(560

)

 

 

 

466,969

 

 

 

$

478,482

 

 

$

596

 

 

$

(560

)

 

 

$

478,518

 

 

 

 

December 31, 2023

 

 

 

Amortized
Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

 

 

(In thousands)

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

20,574

 

 

$

—

 

 

$

—

 

 

$

20,574

 

U.S government and government agency securities

 

 

4,987

 

 

 

1

 

 

 

—

 

 

 

4,988

 

Corporate bonds

 

 

947

 

 

 

—

 

 

 

—

 

 

 

947

 

 

 

 

26,508

 

 

 

1

 

 

 

—

 

 

 

26,509

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

Certificate of deposits

 

 

10,171

 

 

 

7

 

 

 

(2

)

 

 

10,176

 

Commercial paper

 

 

23,609

 

 

 

22

 

 

 

(3

)

 

 

23,628

 

U.S government and government agency securities

 

 

452,813

 

 

 

1,095

 

 

 

(733

)

 

 

453,175

 

Corporate bonds

 

 

81,791

 

 

 

68

 

 

 

(274

)

 

 

81,585

 

 

 

 

568,384

 

 

 

1,192

 

 

 

(1,012

)

 

 

568,564

 

 

 

$

594,892

 

 

$

1,193

 

 

$

(1,012

)

 

$

595,073

 

For the years ended December 31, 2024 and 2023, the activity related to the net gains (losses) on marketable securities included in other income (expense) on the consolidated statements of operations and comprehensive loss were as follows (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2024

 

 

2023

 

Net realized gains (losses) on available-for-sale securities were as follows:

 

 

 

 

 

 

Realized gains from sales of available-for-sale securities

 

$

41

 

 

$

70

 

Realized losses from sales of available-for-sale securities

 

 

(53

)

 

 

(209

)

Net realized losses on marketable securities

 

$

(12

)

 

$

(139

)

 

 

 

 

 

 

 

The following tables provide marketable securities with continuous unrealized losses for less than 12 months and 12 months or greater and the related fair values as of December 31, 2024 and 2023 were as follows:

 

 

December 31, 2024

 

 

 

Less than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

Total

 

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

 

 

(In thousands)

 

Certificate of deposits

 

$

243

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

243

 

 

$

—

 

U.S. government and government agency securities

 

 

111,021

 

 

 

(398

)

 

 

45,099

 

 

 

(82

)

 

 

156,120

 

 

 

(480

)

Corporate bonds

 

 

20,659

 

 

 

(33

)

 

 

9,911

 

 

 

(47

)

 

 

30,570

 

 

 

(80

)

 

 

$

131,923

 

 

$

(431

)

 

$

55,010

 

 

$

(129

)

 

$

186,933

 

 

$

(560

)

 

 

 

December 31, 2023

 

 

 

Less than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

Total

 

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

 

 

(In thousands)

 

Certificate of deposits

 

$

5,693

 

 

$

(2

)

 

$

—

 

 

$

—

 

 

$

5,693

 

 

$

(2

)

Commercial paper

 

 

9,101

 

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

9,101

 

 

 

(3

)

U.S. government and government agency securities

 

 

199,552

 

 

 

(694

)

 

 

24,761

 

 

 

(38

)

 

 

224,313

 

 

 

(732

)

Corporate bonds

 

 

21,844

 

 

 

(28

)

 

 

26,484

 

 

 

(246

)

 

 

48,328

 

 

 

(274

)

 

 

$

236,190

 

 

$

(727

)

 

$

51,245

 

 

$

(284

)

 

$

287,435

 

 

$

(1,011

)

Maturity information based on fair value of the available-for-sale securities is as follows as of December 31, 2024:

 

 

 

Within one year

 

 

After one year
through five years

 

 

Total

 

 

 

(In thousands)

 

Certificate of deposits

 

$

12,642

 

 

$

—

 

 

$

12,642

 

Commercial paper

 

 

18,227

 

 

 

—

 

 

 

18,227

 

U.S. government and government agency securities

 

 

300,295

 

 

 

54,875

 

 

 

355,170

 

Corporate bonds

 

 

52,865

 

 

 

28,065

 

 

 

80,930

 

 

$

384,029

 

 

$

82,940

 

 

$

466,969