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Fair Value Measurements | 6 Months Ended
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Jun. 30, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurements | 3. Fair Value Measurements The following tables present information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis:
|  | June 30, 2025 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Financial assets |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | — |  |  | $ | 130,331 |  |  | $ | — |  |  | $ | 130,331 |
Total cash equivalents |  |  | — |  |  |  | 130,331 |  |  |  | — |  |  |  | 130,331 |
Available-for-sale securities (Note 4): |  |  |  |  |  |  |  |  |  |  |  |
Treasury bills |  |  | — |  |  |  | 42,287 |  |  |  | — |  |  |  | 42,287 |
Government bonds |  |  | — |  |  |  | 86,890 |  |  |  | — |  |  |  | 86,890 |
Total available-for-sale securities |  |  | — |  |  |  | 129,177 |  |  |  | — |  |  |  | 129,177 |
Total financial assets |  | $ | — |  |  | $ | 259,508 |  |  | $ | — |  |  | $ | 259,508 |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |
Derivative liabilities (Note 2): |  | $ | — |  |  | $ | — |  |  | $ | 5,700 |  |  | $ | 5,700 |
Total financial liabilities |  | $ | — |  |  | $ | — |  |  | $ | 5,700 |  |  | $ | 5,700 |
|  | December 31, 2024 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Financial assets |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | — |  |  | $ | 18,088 |  |  | $ | — |  |  | $ | 18,088 |
Treasury bills |  |  | — |  |  |  | 17,434 |  |  |  | — |  |  |  | 17,434 |
Total cash equivalents |  |  | — |  |  |  | 35,522 |  |  |  | — |  |  |  | 35,522 |
Available-for-sale securities (Note 4): |  |  |  |  |  |  |  |  |  |  |  |
Treasury bills |  |  | — |  |  |  | 27,895 |  |  |  | — |  |  |  | 27,895 |
Government bonds |  |  | — |  |  |  | 40,790 |  |  |  | — |  |  |  | 40,790 |
Total available-for-sale securities |  |  | — |  |  |  | 68,685 |  |  |  | — |  |  |  | 68,685 |
Total financial assets |  | $ | — |  |  | $ | 104,207 |  |  | $ | — |  |  | $ | 104,207 |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |
Derivative liabilities (Note 2): |  | $ | — |  |  | $ | — |  |  | $ | 3,150 |  |  | $ | 3,150 |
Total financial liabilities |  | $ | — |  |  | $ | — |  |  | $ | 3,150 |  |  | $ | 3,150 |
As of June 30, 2025 and December 31, 2024, the fair values of the Company’s cash equivalents and available-for-sale securities were determined using Level 2 inputs. The Company estimated the fair value of the derivative liabilities by using a Monte Carlo simulation forecasting the timing and likelihood of certain development milestone events being achieved and discounting the probability adjusted payments using an appropriate discount rate based on market interest rates. The main assumptions when determining the fair value of the derivative liabilities are the timing and probability of achieving certain milestones, the estimated volatility of the Company’s common stock, and the discount rate. The estimated fair value presented is not necessarily indicative of an amount that could be realized in a current market exchange. The use of alternative inputs and estimation methodologies could have a material effect on these estimates of fair value. The significant unobservable inputs used in valuing the developmental milestone derivative liabilities at each measurement date are as follows:
|  | June 30, 2025 |  | December 31, 2024
Unobservable Input |  | Range |  | Average |  | Range |  | Average
Probability of achieving certain development milestones |  | 28.0% - 70.0% |  | 49.0% |  | 28.0% - 70.0% |  | 49.0%
Volatility |  | 93.0% |  | 93.0% |  | 85.0% |  | 85.0%
Discount Rate |  | 3.7% - 4.3% |  | 4.0% |  | 4.2% - 4.3% |  | 4.3%
Timing of achieving certain development milestones |  | 0.5 - 3.2 years |  | 1.8 years |  | 1.0 - 3.7 years |  | 2.3 years
The following table presents a roll forward of activity associated with the Company’s derivative liabilities measured using Level 3 inputs:
|  | Developmental Milestone Derivative Liabilities |
Fair value of derivative liabilities as of January 1, 2025 |  | $ | 3,150 |
Change in fair value of derivative liabilities |  |  | 2,550 |
Fair value of derivative liabilities as of June 30, 2025 |  | $ | 5,700 |
The Company recognized loss es of $0.9 million and $2.6 million for the change in fair value of the derivative liabilities during the three and six months ended June 30, 2025, respectively. No gain or loss was recognized during the three or six months ended June 30, 2024. It is the Company's policy to recognize transfers between levels of the fair value hierarchy, if any, at the end of the reporting period. During the six months ended June 30, 2025, and the year ended December 31, 2024, there were no transfers between Level 1, Level 2, and Level 3. As of June 30, 2025, and December 31, 2024, the Company's accounts payable, accrued expenses, and other current liabilities approximated their estimated fair values due to the short-term nature of these financial instruments.

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- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/820/tableOfContent + Details
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