FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2024

FAIR VALUE MEASUREMENTS:

FAIR VALUE MEASUREMENTS

13. FAIR VALUE MEASUREMENTS

Fair value is the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The multiple assumptions used to value financial instruments are referred to as inputs, and a hierarchy for inputs used in measuring fair value is established, that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. These inputs are ranked according to a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels.

Level 1 - Inputs are quoted prices in active markets for identical assets or liabilities.

Level 2 -	Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data.
Level 3 -	Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable.

The following table summarizes the fair value of the Company’s financial instruments (in thousands):

		Fair Value Measurements Using
	Balance Sheet	December 31,
Assets	Classification	2024		(Level 1)		(Level 2)		Level 3)
Money market mutual funds	Cash equivalents	$	66,213	$	66,213	$	—	$	—
Available-for-sale debt securities:
U.S. Government securities (1)	Short-term investments		24,291		24,291		—		—
Convertible note receivable (2)	Non-current assets		2,038		—		—		2,038
Total		$	92,542	$	90,504	$	—	$	2,038

		Fair Value Measurements Using
	Balance Sheet	December 31,
Assets	Classification	2023		(Level 1)		(Level 2)		(Level 3)
Money market mutual funds	Cash equivalents	$	83,810	$	83,810	$	—	$	—
Available-for-sale debt securities:
U.S. Government securities (1)	Short-term investments		36,544		36,544		—		—
Total		$	120,354	$	120,354	$	—	$	—

(1) The carrying amount of the Company’s investments in U.S. Government securities approximate fair value due to their short-term maturities, and there have been no events or changes in circumstances that would have had a significant effect on the fair value of these securities as of December 31, 2024 and 2023.

(2) In August 2024, the Company purchased a $2.0 million non-marketable convertible promissory note from an unrelated third party (the “convertible note”). The convertible note bears a 5% interest rate annually and will mature in August 2026.