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Fair Value Measurements and Marketable Securities
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Marketable Securities
3.
Fair Value Measurements and Marketable Securities

Fair Value Measurements

The Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024 are measured in accordance with the standards of ASC 820, "Fair Value Measurements and Disclosures", which establishes a three-level valuation hierarchy for measuring fair value and expands financial statement disclosures about fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

 

Level – 1

Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

 

 

Level – 2

Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

 

 

Level – 3

Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company’s financial instruments consist primarily of cash, cash equivalents, marketable securities, accounts payable and accrued liabilities. For accounts payable and accrued liabilities, the carrying amounts of these financial instruments as of June 30, 2025 and December 31, 2024 were considered representative of their fair values due to their short term to maturity.

The following tables summarize the Company’s cash equivalents and marketable securities as of June 30, 2025 and December 31, 2024:

 

 

 

Total

 

 

Quoted
Prices in
Active
Markets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

 

(in thousands)

 

June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds invested in government securities

 

$

19,715

 

 

$

19,715

 

 

$

—

 

 

$

—

 

Total cash equivalents

 

 

19,715

 

 

 

19,715

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Bills

 

 

11,404

 

 

 

11,404

 

 

 

—

 

 

 

—

 

U.S. Government securities

 

 

106,533

 

 

 

—

 

 

 

106,533

 

 

 

—

 

Total marketable securities

 

 

117,937

 

 

 

11,404

 

 

 

106,533

 

 

 

—

 

Total cash equivalents and marketable securities

 

$

137,652

 

 

$

31,119

 

 

$

106,533

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds invested in government securities

 

$

26,702

 

 

$

26,702

 

 

$

—

 

 

$

—

 

Total cash equivalents

 

 

26,702

 

 

 

26,702

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Bills

 

 

2,947

 

 

 

2,947

 

 

 

—

 

 

 

—

 

U.S. Government securities

 

 

147,289

 

 

 

—

 

 

 

147,289

 

 

 

—

 

Total marketable securities

 

 

150,236

 

 

 

2,947

 

 

 

147,289

 

 

 

—

 

Total cash equivalents and marketable securities

 

$

176,938

 

 

$

29,649

 

 

$

147,289

 

 

$

—

 

 

The accrued interest receivable related to the Company’s investments was $1.0 million and $1.1 million as of June 30, 2025 and December 31, 2024, respectively, and is included in prepaid expenses and other current assets on the condensed consolidated balance sheet.

The Company classifies its money market funds and U.S. treasury bills, which are valued based on quoted market prices in active markets with no valuation adjustment, as Level 1 assets within the fair value hierarchy.

The Company classifies its investments in U.S. government and agency securities, corporate commercial paper, and corporate bonds, if any, as Level 2 assets within the fair value hierarchy. The fair values of these investments are estimated by taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income- and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities, prepayment/default projections based on historical data and other observable inputs.

As of June 30, 2025 and December 31, 2024, the unrealized losses for available-for-sale investments were non-credit related, and the Company does not intend to sell the investments that were in an unrealized loss position, nor will it be required to sell those investments before recovery of their amortized cost basis, which may be maturity. As of June 30, 2025 and December 31, 2024, no allowances for credit losses for the Company’s investments were recorded. During the three and six months ended June 30, 2025 and 2024, the Company did not recognize any impairment losses related to investments.

As of June 30, 2025 and December 31, 2024, the Company's cash equivalents and marketable securities consisted of a U.S. government money market fund, U.S. Treasury Bills and U.S. government and agency securities, all held in our name in a separate custody account with U.S. Bank. The U.S. government money market fund has same-day liquidity access and the U.S. government and agency securities all have maturities of 360 days or less.

Marketable Securities

The following table summarizes the Company's marketable securities as of June 30, 2025 and December 31, 2024:

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

 

 

(in thousands)

 

June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Bills

 

$

11,406

 

 

$

—

 

 

$

(2

)

 

$

11,404

 

U.S. Government securities

 

 

106,539

 

 

 

15

 

 

 

(21

)

 

 

106,533

 

Total marketable securities

 

$

117,945

 

 

$

15

 

 

$

(23

)

 

$

117,937

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Bills

 

$

2,945

 

 

$

2

 

 

$

—

 

 

$

2,947

 

U.S. Government securities

 

 

147,143

 

 

 

166

 

 

 

(20

)

 

 

147,289

 

Total marketable securities

 

$

150,088

 

 

$

168

 

 

$

(20

)

 

$

150,236

 

As of June 30, 2025 and December 31, 2024, the Company held no investments that have been in a continuous loss position for 12 months or longer.