Fair value of financial instruments

12 Months Ended

Dec. 31, 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 December 31, 2024 and 2023:

			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
	Balance at		Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2024		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash equivalents	$	8,124	$	8,124	$	—	$	—
U.S Treasury securities		20,783		—		20,783		—
Commercial paper		2,478		—		2,478		—
Total Assets	$	31,385	$	8,124	$	23,261	$	—
Liabilities:
Contingent consideration – Long term portion	$	3,871	$	—	$	—	$	3,871
Total Liabilities	$	3,871	$	—	$	—	$	3,871

			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 – Long term portion	$	5,765	$	—	$	—	$	5,765
Total Liabilities	$	5,765	$	—	$	—	$	5,765

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

	December 31, 2024
			Gross		Gross
			Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Cash equivalents	$	8,124	$	—	$	—	$	8,124
Marketable securities (due in one year or less):
U.S Treasury securities		20,776		7		—		20,783
Commercial paper		2,478		—		—		2,478
Total marketable securities due in one year or less		23,254		7		—		23,261
Total cash equivalents and marketable securities	$	31,378	$	7	$	—	$	31,385

	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 one debt security at December 31, 2024 classified as a marketable security with an original maturity date greater than three months that was in an unrealized loss position for less than twelve months. The fair market value of this security was $2,478. 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 this security 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 this security, and the Company does not intend to sell this security before the recovery of its amortized cost basis. Based on its analysis, the Company does not consider this investments to be other-than-temporarily impaired as of December 31, 2024.

The Company had no material realized gains or losses on its available-for-sale securities for the years ended December 31, 2024 and 2023. There were no other-than-temporary impairments recognized for the years ended December 31, 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		Fair Value
	as of		as of
	December 31,		December 31,		Valuation	Unobservable
Contingent Consideration Liability	2024		2023		Technique	Inputs
Revenue-based Payments	$	3,871	$	5,765	Discounted Cash Flow Analysis under the Income Approach	Revenue discount factor, discount rate