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Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

4. Fair Value Measurements

The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values (in thousands):

 

 

Fair Value Measurements at June 30, 2026 Using:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

35,601

 

 

$

—

 

 

$

—

 

 

$

35,601

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

—

 

 

 

41,476

 

 

 

—

 

 

 

41,476

 

Promissory note

 

 

—

 

 

 

—

 

 

 

2,560

 

 

 

2,560

 

Total assets

 

$

35,601

 

 

$

41,476

 

 

$

2,560

 

 

$

79,637

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

CVR liability

 

$

—

 

 

$

—

 

 

$

2,560

 

 

$

2,560

 

 

 

 

 

Fair Value Measurements at December 31, 2025 Using:

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

34,968

 

 

$

—

 

 

$

—

 

 

$

34,968

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

—

 

 

 

40,817

 

 

 

—

 

 

 

40,817

 

Promissory note

 

 

—

 

 

 

—

 

 

 

7,020

 

 

 

7,020

 

Total assets

 

$

34,968

 

 

$

40,817

 

 

$

7,020

 

 

$

82,805

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

CVR liability

 

$

—

 

 

$

—

 

 

$

7,020

 

 

$

7,020

 

 

Money market funds are valued based on quoted market prices, representing a Level 1 measurement within the fair value hierarchy. Corporate debt securities are valued using a market approach based on prices and other relevant information generated by market transactions involving similar instruments. Valuations are obtained from third-party pricing services, which use observable inputs including benchmark yields, reported trades, broker quotes, benchmark securities, and other market-related data. As the valuations are based on observable market inputs for similar instruments, rather than quoted prices for identical instruments in active markets, these securities are classified as Level 2 within the fair value hierarchy.

The Company elected the fair value option and accordingly recorded the Promissory Note receivable at fair value at inception date (July 25, 2025) and each period end, with changes recorded within other income (expense) in the consolidated statements of operations and comprehensive loss. The Company believes the fair value option best reflects the economics of the underlying transaction. The Company’s Promissory Note receivable is valued on a recurring basis using a probability weighted expected future payout discounted by applicable market yield of 26.1% and 15.2% as of June 30, 2026 and December 31, 2025, respectively, which are Level 3 inputs.

The Company recorded a corresponding CVR liability in connection with the Promissory Note receivable, with the carrying amount equal to the fair value at inception and each period end, with changes recorded within other income (expense) in the consolidated statements of operations and comprehensive loss. The CVR liability and the Promissory Note have offsetting adjustments resulting from the change of their respective fair values as any payments received by the Company under the Promissory Note from BuyCo will be distributed to Legacy Inmagene CVR holders as Legacy Inmagene CVR Payments. No cash payments were made for the Promissory Note receivable or the corresponding CVR liability for the periods presented.

The following table presents the changes in fair value of the Promissory Note receivable and the corresponding CVR liability during the three and six months ended June 30, 2026 (in thousands):

 

Promissory

 

 

 

 

 

Note Receivable

 

CVR Liability

 

Balances at December 31, 2025

 

$

7,020

 

 

$

7,020

 

Change in fair value

 

 

(1,290

)

 

 

(1,290

)

Balances at March 31, 2026

 

 

5,730

 

 

 

5,730

 

Change in fair value

 

 

(3,170

)

 

 

(3,170

)

Balances at June 30, 2026

 

$

2,560

 

 

$

2,560

 

During the three and six months ended June 30, 2026, there were no transfers into or out of Level 3.