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Fair Value Measurement (Tables) | 9 Months Ended
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Sep. 30, 2021
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table sets forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):
|  | September 30, 2021 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 331,349 |  |  | $ | - |  |  | $ | - |  |  | $ | 331,349 |
U.S. Treasury securities |  |  | - |  |  |  | 249,761 |  |  |  | - |  |  |  | 249,761 |
U.S. government agency securities |  |  | - |  |  |  | 103,961 |  |  |  | - |  |  |  | 103,961 |
Corporate debt securities |  |  | - |  |  |  | 230,704 |  |  |  | - |  |  |  | 230,704 |
Equity warrant investment |  |  | - |  |  |  | - |  |  |  | 1,124 |  |  |  | 1,124 |
Total financial assets |  | $ | 331,349 |  |  | $ | 584,426 |  |  | $ | 1,124 |  |  | $ | 916,899 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Success payment liabilities |  | $ | - |  |  | $ | - |  |  | $ | 25,116 |  |  | $ | 25,116 |
Total financial liabilities |  | $ | - |  |  | $ | - |  |  | $ | 25,116 |  |  | $ | 25,116 |
|  | December 31, 2020 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 50,513 |  |  | $ | - |  |  | $ | - |  |  | $ | 50,513 |
U.S. Treasury securities |  |  | - |  |  |  | 202,701 |  |  |  | - |  |  |  | 202,701 |
U.S. government agency securities |  |  | - |  |  |  | 205,764 |  |  |  | - |  |  |  | 205,764 |
Corporate debt securities |  |  | - |  |  |  | 211,109 |  |  |  | - |  |  |  | 211,109 |
Equity warrant investment |  |  | - |  |  |  | - |  |  |  | 1,323 |  |  |  | 1,323 |
Total financial assets |  | $ | 50,513 |  |  | $ | 619,574 |  |  | $ | 1,323 |  |  | $ | 671,410 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Success payment liabilities |  | $ | - |  |  | $ | - |  |  | $ | 5,773 |  |  | $ | 5,773 |
Total financial liabilities |  | $ | - |  |  | $ | - |  |  | $ | 5,773 |  |  | $ | 5,773 |
Changes in the Estimated Fair Value of Level 3 Financial Assets and Liabilities | The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial assets and liabilities (in thousands):
|  | Equity Warrant Investment |  |  | Success Payment Liabilities |
Balance at December 31, 2020 |  | $ | 1,323 |  |  | $ | 5,773 |
Change in fair value (1) |  |  | (199 | ) |  |  | 19,343 |
Balance at September 30, 2021 |  | $ | 1,124 |  |  | $ | 25,116 |
(1) The change in fair value associated with the equity warrant investment is recorded in other income (expense), net and the change in fair value associated with success payment liabilities is recorded in research and development expense.
Fred Hutch |
Summary of Estimated Fair Value of Success Payment Liability Assumptions | The following assumptions were incorporated into the calculation of the estimated fair value of the Fred Hutch success payment liability:
|  | September 30, |  |  | December 31, |
|  | 2021 |  |  | 2020 |
Fair value of common stock (Series A convertible preferred stock) |  | $ | 14.80 |  |  | $ | 9.07 |
Risk-free interest rate |  | 0.07% - 2.24% |  |  | 0.10% - 1.52% |
Expected volatility |  |  | 75 | % |  |  | 80 | %
Expected term (in years) |  | 0.71 - 6.22 |  |  | 1.00 - 6.97 |
Stanford |
Summary of Estimated Fair Value of Success Payment Liability Assumptions | The following assumptions were incorporated into the calculation of the estimated fair value of the Stanford success payment liability:
|  | September 30, |  |  | December 31, |
|  | 2021 |  |  | 2020 |
Fair value of common stock (Series A convertible preferred stock) |  | $ | 14.80 |  |  | $ | 9.07 |
Risk-free interest rate |  | 0.07% - 2.24% |  |  | 0.10% - 1.53% |
Expected volatility |  |  | 75 | % |  |  | 80 | %
Expected term (in years) |  | 0.71 - 8.00 |  |  | 1.00 - 8.75 |

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- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19279-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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