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Fair Value Measurement
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair value measurement

4. Fair value measurement

The Company’s financial instruments consist of cash and cash equivalents, accounts payable, certain accrued expenses, contingent consideration, warrant liability and convertible loan notes. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair value due to the short-term nature of those financial instruments.

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy:

 

 

As of June 30, 2024

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

($'000)

 

 

($'000)

 

 

($'000)

 

 

($'000)

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liabilities

 

 

925

 

 

 

—

 

 

 

925

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

($'000)

 

 

($'000)

 

 

($'000)

 

 

($'000)

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liabilities

 

 

412

 

 

 

—

 

 

 

412

 

 

 

—

 

CVR liability

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

There were no transfers between Level 1 and Level 2 during the three and six months ended June 30, 2024.

 

Warrant liabilities

 

At June 30, 2024 and December 31, 2023, warrant liabilities solely related to those warrants outstanding to the former lenders of the Company as described in Note 11.

Contingent Value Rights Agreement Liability ("CVR liability")

In 2019, the Company acquired OncoMed and subsequently renamed it Mereo BioPharma 5, Inc. The Company made a provision for the estimated fair value of amounts payable to the former shareholders of Mereo BioPharma 5, Inc. under a Contingent Value Rights Agreement (“CVR”), established at the time of the acquisition of Mereo BioPharma 5, Inc. which was accounted for as a contingent consideration liability. The CVR expired on April 23, 2024 with no further amounts payable, therefore there were no CVR obligations as of June 30, 2024. As of December 31, 2023, the Company estimated the fair value of the liability for its obligations under the CVR to be $nil.