Fair value of financial instruments

6 Months Ended

Jun. 30, 2024

Fair value of financial instruments

Fair value of financial instruments

(4) Fair value of financial instruments

The Company measures the following financial liabilities at fair value on a recurring basis. There were no transfers between levels of the fair value hierarchy during any of the periods presented.

The following tables set forth the Company’s financial assets and liabilities carried at fair value categorized using the lowest level of input applicable to each financial instrument as of June 30, 2024 and December 31, 2023:

			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
	Balance at		Identical		Observable		Unobservable
	June 30,		Assets		Inputs		Inputs
	2024		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash equivalents	$	6,540	$	6,540	$	—	$	—
U.S Treasury securities		25,897		—		25,897		—
Corporate bonds		3,463		—		3,463		—
U.S. Government agency bonds		3,496		—		3,496		—
Commercial paper		3,455		—		3,455		—
Yankee bonds		3,486		—		3,486		—
Total Assets	$	46,337	$	6,540	$	39,797	$	—
Liabilities:
Contingent consideration – Short term portion	$	1,935	$	—	$	—	$	1,935
Contingent consideration – Long term portion		4,097		—		—		4,097
Total Liabilities	$	6,032	$	—	$	—	$	6,032

			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
	Balance at		Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2023		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash equivalents	$	76,844	$	76,844	$	—	$	—
Total Assets	$	76,844	$	76,844	$	—	$	—
Liabilities:
Contingent consideration – Short term portion	$	1,911	$	—	$	—	$	1,911
Contingent consideration – Long term portion		5,765		—		—		5,765
Total Liabilities	$	7,676	$	—	$	—	$	7,676

The following is a summary of cash equivalents and marketable securities as of June 30, 2024 and December 31, 2023:

	June 30, 2024
			Gross		Gross
			Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Cash equivalents	$	6,540	$	—	$	—	$	6,540
Marketable securities (due in one year or less):
U.S Treasury securities		25,897		—		—		25,897
Corporate bonds		3,469		—		(6)		3,463
Commercial paper		3,458		—		(3)		3,455
Yankee bonds		3,487		—		(1)		3,486
Total marketable securities due in one year or less		36,311		—		(10)		36,301
Marketable securities (due in one to two years):
U.S. Government agency bonds		3,498		—		(2)		3,496
Total marketable securities due in one to two years		3,498		—		(2)		3,496
Total cash equivalents and marketable securities	$	46,349	$	—	$	(12)	$	46,337

	December 31, 2023
			Gross		Gross
			Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Cash equivalents	$	76,844	$	—	$	—	$	76,844
Total cash equivalents	$	76,844	$	—	$	—	$	76,844

The Company held six debt securities at June 30, 2024 classified as marketable securities with original maturity dates greater than three months that were in an unrealized loss position for less than twelve months. The fair market value of these securities was $24,147. The Company evaluated its securities for other-than-temporary impairments based on quantitative and qualitative factors. The Company considered the decline in market value for these securities to be primarily attributable to current economic and market conditions. It is not more likely than not that the Company will be required to sell these securities, and the Company does not intend to sell these securities before the recovery of their amortized cost basis. Based on its analysis, the Company does not consider these investments to be other-than-temporarily impaired as of June 30, 2024.

The Company had no material realized gains or losses on its available-for-sale securities for the three and six months ended June 30, 2024 and 2023.

The Company’s recurring fair value measurements using Level 3 inputs relate to the Company’s contingent consideration liability. In those circumstances where an acquisition involves a contingent consideration arrangement, the Company recognizes a liability equal to the fair value of the contingent payments the Company expects to make as of the acquisition date. The Company re-measures this liability each reporting period and records changes in the fair value through changes in fair value of contingent consideration on the Company’s consolidated statements of operations. Increases or decreases in the fair value of the contingent consideration liability can result from changes in discount rates, periods, timing and amount of projected revenue.

The recurring Level 3 fair value measurements of the Company’s contingent consideration liability include the following significant unobservable inputs:

	Fair Value
	as of
	June 30,		Valuation	Unobservable
Contingent Consideration Liability	2024		Technique	Inputs
Revenue-based Payments	$	6,032	Discounted Cash Flow Analysis under the Income Approach	Revenue discount factor, discount rate