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Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Measurements [Abstract]  
Fair Value Measurements

(18) Fair Value Measurements

We measure our contingent purchase price consideration at fair value. The fair values of our contingent purchase price consideration of $0.3 million, included in "Other long-term liabilities" in our consolidated balance sheets, are based on significant inputs not observable in the market, which require them to be reported as Level 3 liabilities within the fair value hierarchy. The valuation of these liabilities uses assumptions we believe would be made by a market participant and are mainly based on estimates from a Monte Carlo simulation of our share price, as well as other factors impacting the probability of triggering the milestone payments. Share price was evolved using a geometric Brownian motion, calculated daily for the life of the contingent purchase price consideration.

We are required to measure the Purchaser Upsize Option issued under the Ligand Purchase Agreement at fair value. The $69,200 fair value of the Purchaser Upsize Option at December 31, 2024, included in "Other current liabilities" in our consolidated balance sheets, is based on significant inputs not observable in the market, which require it to be reported as a Level 3 liability within the fair value hierarchy. The valuation of this liability is determined based on a scenario analysis and uses assumptions we believe would be made by a market participant.

Assets and liabilities measured at fair value are summarized below (in thousands):

Description

 

December 31, 2024

 

 

Quoted Prices in
Active
Markets for
Identical Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents (Note 4)

 

$

6,954

 

 

$

6,954

 

 

$

—

 

 

$

—

 

Long-term investments

 

 

1,006

 

 

 

1,006

 

 

 

—

 

 

 

—

 

Total

 

$

7,960

 

 

$

7,960

 

 

$

—

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Purchaser Upsize Option (Note 17)

 

$

69

 

 

$

—

 

 

$

—

 

 

$

69

 

Contingent purchase price consideration

 

 

318

 

 

 

—

 

 

 

—

 

 

 

318

 

Total

 

$

387

 

 

$

—

 

 

$

—

 

 

$

387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Description

 

December 31, 2023

 

 

Quoted Prices in
Active
Markets for
Identical Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents (Note 4)

 

$

70,485

 

 

$

70,485

 

 

$

—

 

 

$

—

 

Long-term investments

 

 

3,222

 

 

 

3,222

 

 

 

—

 

 

 

—

 

Total

 

$

73,707

 

 

$

73,707

 

 

$

—

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent purchase price consideration

 

$

318

 

 

$

—

 

 

$

—

 

 

$

318

 

Total

 

$

318

 

 

$

—

 

 

$

—

 

 

$

318

 

Long-term investments are included in "Other long-term assets" in our consolidated balance sheets.

There were no changes in the valuation techniques during the period and there were no transfers into or out of Levels 1 and 2.

The fair value of our outstanding debt balance at December 31, 2024 and 2023 was $36.3 million and $13.0 million, respectively, based on the Level 2 valuation hierarchy of the fair value measurements standard using a present value methodology which was derived by evaluating the nature and terms of each note and considering the prevailing economic and market conditions at the balance sheet date. The principal amount of our outstanding debt balance at December 31, 2024 and 2023 was $35.2 million and $13.1 million, respectively.