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Fair Value Measurements
 6 Months Ended
Jun. 30, 2024
Text Block [Abstract]  
Fair Value Measurements

Note 5. Fair Value Measurements

Financial assets and liabilities are recorded at fair value.

The Company classifies fair value measurements using a three-level hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

•
Level 1—Quoted market prices (unadjusted) in active markets for identical assets and liabilities.
•
Level 2—Observable inputs other than quoted market prices included in Level 1, such as quoted market prices for markets that are not active or other inputs that are observable or can be corroborated by observable market data.
•
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. These fair values are obtained from independent pricing services which utilize Level 1 and Level 2 inputs.

Financial Assets

The following table summarizes the Company's financial asset instruments measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 (in thousands). Included within cash and cash equivalents on the unaudited condensed consolidated balance sheets, but excluded from the fair value hierarchy table, are cash deposits held at financial institutions.

 

 

 

June 30, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

3,949

 

 

$

—

 

 

$

—

 

 

$

3,949

 

U.S. government securities

 

 

21,230

 

 

 

—

 

 

 

—

 

 

 

21,230

 

Total cash equivalents

 

$

25,179

 

 

$

—

 

 

$

—

 

 

$

25,179

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government securities

 

$

—

 

 

$

47,837

 

 

$

—

 

 

$

47,837

 

U.S. government agency securities

 

 

—

 

 

 

9,734

 

 

 

—

 

 

 

9,734

 

Total short-term investments

 

$

—

 

 

$

57,571

 

 

$

—

 

 

$

57,571

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total financial assets

 

$

25,179

 

 

$

57,571

 

 

$

—

 

 

$

82,750

 

 

 

 

 

December 31, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

4,246

 

 

$

—

 

 

$

—

 

 

$

4,246

 

Total cash equivalents

 

$

4,246

 

 

$

—

 

 

$

—

 

 

$

4,246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government securities

 

$

—

 

 

$

33,213

 

 

$

—

 

 

$

33,213

 

U.S. government agency securities

 

 

—

 

 

 

13,277

 

 

 

—

 

 

 

13,277

 

Total short-term investments

 

$

—

 

 

$

46,490

 

 

$

—

 

 

$

46,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total financial assets

 

$

4,246

 

 

$

46,490

 

 

$

—

 

 

$

50,736

 

Warrant Liabilities

The following table summarizes the Company's warrant liabilities (see Note 9) measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 (in thousands) and was based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy.

 

 

June 30, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Warrant liabilities

 

$

—

 

 

$

—

 

 

$

120,821

 

 

$

120,821

 

 

 

 

December 31, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Warrant liabilities

 

$

—

 

 

$

—

 

 

$

76,211

 

 

$

76,211

 

The following table provides a roll-forward of the aggregate fair value of the warrant liability categorized with Level 3 inputs:

 

 

Warrants

 

Balance as of December 31, 2023

 

$

76,211

 

Change in fair value of warrant liabilities

 

 

44,610

 

Balance as of June 30, 2024

 

$

120,821

 

The change in fair value of warrant liabilities and fair value of financial instruments issued in excess of proceeds of $44.6 million was recorded in the condensed consolidated statement of operations and comprehensive loss for the six months ended June 30, 2024.