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Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Measurements [Abstract]  
Fair Value Measurements

Note H – Fair Value Measurements

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

Description

 

March 31, 2025

 

 

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 C)

 

$

5,560

 

 

$

5,560

 

 

$

—

 

 

$

—

 

Long-term investments

 

 

872

 

 

 

872

 

 

 

—

 

 

 

—

 

Total

 

$

6,432

 

 

$

6,432

 

 

$

—

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Purchaser Upsize Option (Note F)

 

$

69

 

 

$

—

 

 

$

—

 

 

$

69

 

Contingent purchase price consideration

 

 

318

 

 

 

—

 

 

 

—

 

 

 

318

 

Total

 

$

387

 

 

$

—

 

 

$

—

 

 

$

387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 C)

 

$

6,954

 

 

$

6,954

 

 

$

—

 

 

$

—

 

Long-term investments

 

 

1,006

 

 

 

1,006

 

 

 

—

 

 

 

—

 

Total

 

$

7,960

 

 

$

7,960

 

 

$

—

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Purchaser Upsize Option (Note F)

 

$

69

 

 

 

 

 

 

 

 

$

69

 

Contingent purchase price consideration

 

 

318

 

 

 

—

 

 

 

—

 

 

 

318

 

Total

 

$

387

 

 

$

—

 

 

$

—

 

 

$

387

 

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

We are required to measure the Purchaser Upsize Option issued under the Ligand Purchase Agreement at fair value. The $69,000 fair value of the Purchaser Upsize Option at March 31, 2025, included in "Other current liabilities" in our condensed 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.

We measure our contingent purchase price considerations at fair value. The fair values of our contingent purchase price considerations at both March 31, 2025 and December 31, 2024, of $0.3 million, included in "Other long-term liabilities" in our condensed 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 use 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 considerations.

The fair value of our outstanding debt balance at March 31, 2025 and December 31, 2024 was $35.5 million and $36.3 million, respectively, based on the Level 2 valuation hierarchy of the fair value measurements standard using a present value methodology that 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 March 31, 2025 and December 31, 2024 was $36.0 million and $35.2 million, respectively.