Fair Value Measurements

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 3. Fair Value Measurements

Fair value is established as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, an established three-tier fair value hierarchy distinguishes between the following:

•Level 1 inputs are quoted prices in active markets that are accessible at the market date for identical assets or liabilities.

•Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

•Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the assets or liability. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value instrument.

The following fair value hierarchy table presents information about each major category of the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands):

	March 31, 2025
	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Money market funds	$	257,197	$	—	$	—	$	257,197
Cash equivalents	$	257,197	$	—	$	—	$	257,197
U.S. government bonds	$	29,505	$	—	$	—	$	29,505
U.S. government agency bonds	$	—	$	1,985	$	—	$	1,985
Commercial paper	$	—	$	23,176	$	—	$	23,176
Corporate debt securities	$	—	$	8,366	$	—	$	8,366
Short-term marketable securities	$	29,505	$	33,527	$	—	$	63,032
U.S. government bonds	$	14,559	$	—	$	—	$	14,559
Long-term marketable securities	$	14,559	$	—	$	—	$	14,559
Total fair value of financial assets	$	301,261	$	33,527	$	—	$	334,788
Liabilities:
Warrant liability	$	—	$	—	$	97	$	97

	December 31, 2024
	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash equivalents	$	354,061	$	—	$	—	$	354,061
Liabilities:
Warrant liability	$	—	$	—	$	156	$	156

Cash Equivalents and Marketable Securities

Cash equivalents include U.S. government obligation money market mutual funds that have a maturity of three months or less from the original acquisition date. The Company’s cash equivalents are classified using Level 1 inputs within the fair value hierarchy because they are valued using quoted market prices. U.S. government bonds are included within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Corporate debt securities, commercial paper, and U.S. government agency bonds are classified within Level 2 of the fair value hierarchy as they take into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income-based and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate the fair value. These inputs include reported trades of and broker/dealer quotes on similar securities, issuer credit spreads, benchmark securities, prepayment/default projections based on historical data and other observable inputs.

The following tables summarize the Company's cash equivalents and marketable securities' amortized costs, gross unrealized gains, gross unrealized losses, and estimated fair values by significant investment category (in thousands):

				Unrealized
March 31, 2025	Contractual Maturity	Amortized Cost		Losses			Gains		Fair Value
Assets:
Money market funds	Three months or less	$	257,197	$	—		$	—	$	257,197
Cash equivalents		$	257,197	$	—		$	—	$	257,197
U.S. government bonds	Less than 1 year	$	29,485	$	—		$	20	$	29,505
U.S. government agency bonds	Less than 1 year	$	1,985	$	—		$	—	$	1,985
Commercial paper	Less than 1 year	$	23,181	$	(5	)	$	—	$	23,176
Corporate debt securities	Less than 1 year	$	8,366	$	—		$	—	$	8,366
Short-term marketable securities		$	63,017	$	(5	)	$	20	$	63,032
U.S. government bonds	1 to 2 years	$	14,545	$	—		$	14	$	14,559
Long-term marketable securities		$	14,545	$	—		$	14	$	14,559
Total financial assets		$	334,759	$	(5	)	$	34	$	334,788

				Unrealized
December 31, 2024	Contractual Maturity	Amortized Cost		Losses		Gains		Fair Value
Assets:
Money market funds	Three months or less	$	354,061	$	—	$	—	$	354,061
Cash equivalents		$	354,061	$	—	$	—	$	354,061

The Company does not intend to sell the securities in an unrealized loss position and does not expect they will be required to sell the securities before maturity. No allowance for credit losses has been recognized as of March 31, 2025 and December 31, 2024. During the three months ended March 31, 2025 and 2024, the Company did not recognize any impairment losses related to investments.

As of March 31, 2025 and December 31, 2024, the Company had accrued interest receivable of $1.1 million and $1.2 million, respectively, which was included in the prepaid expenses and other current assets financial statement line item in the condensed consolidated balance sheets.

Warrant Liability

As of March 31, 2025, warrants representing 31,690 shares of common stock were outstanding. These warrants are classified as a liability since the warrants meet the classification requirements for liability accounting pursuant to ASC 815. This liability is subject to remeasurement at each balance sheet date until the warrants are exercised or expire, and any change in fair value is recognized in the Company’s condensed statements of operations. The Company classifies the warrant liability within Level 3 of the fair value hierarchy as the assessed fair value is based on both observable and unobservable market inputs including the Company's stock price, risk-free rate, and volatility.