Note 3 - Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Fair Value Disclosures [Text Block]

3. Fair Value of Financial Instruments

 

Fair Value of Financial Instruments

The Company determines the fair value of its financial instruments based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels:

Level 1 – Observable inputs such as quoted prices in active markets for an identical asset or liability that the Company has the ability to access as of the measurement date. Financial assets and liabilities utilizing Level 1 inputs include money market funds.

Level 2 – Inputs, other than quoted prices included within Level 1, which are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. The Company did not classify any of its investments within Level 2 of the fair value hierarchy.

Level 3 – Unobservable inputs for which there is little or no market data for the asset or liability which requires the reporting entity to develop its own assumptions. The Company did not classify any of its investments within Level 3 of the fair value hierarchy.

The following table sets forth the fair value of the Company’s financial assets measured on a recurring basis (in thousands):

		December 31, 2024
Assets	Classification	Level 1		Level 2		Level 3		Total
Money market funds	Cash and cash equivalents	$	113,776	$	—	$	—	$	113,776
Total assets measured at fair value		$	113,776	$	—	$	—	$	113,776

		December 31, 2023
Assets	Classification	Level 1		Level 2		Level 3		Total
Money market funds	Cash and cash equivalents	$	41,184	$	—	$	—	$	41,184
Total assets measured at fair value		$	41,184	$	—	$	—	$	41,184

During the years ended December 31, 2024 and 2023, the Company did not record impairment charges related to its cash equivalents. During the years ended December 31, 2024 and 2023, the Company did not have any transfers between Level 1, Level 2 or Level 3 of the fair value hierarchy. Additionally, the Company did not have any financial liabilities measured on a recurring basis as of December 31, 2024 or 2023.