Fair value measurements

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair value measurements

3. Fair value measurements

Certain assets and liabilities of the Company are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

•Level 1—Quoted prices in active markets for identical assets or liabilities.

•Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

•Level 3—Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The following is a summary of our financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023:

	June 30, 2024
	Total		Level 1		Level 2		Level 3
Money market funds	$	244,283	$	244,283	$	—	$	—
U.S. Treasury securities		275,738		275,738		—		—
U.S. Government agency securities		119,338		—		119,338		—
Commercial paper		84,436		—		84,436		—
Corporate debt securities		68,611		—		68,611		—
Total assets	$	792,406	$	520,021	$	272,385	$	—
Warrant liabilities	$	164	$	—	$	—	$	164
Total liabilities	$	164	$	—	$	—	$	164
	December 31, 2023
	Total		Level 1		Level 2		Level 3
Money market funds	$	206,879	$	206,879	$	—	$	—
U.S. Treasury securities		117,307		117,307		—		—
U.S. Government agency securities		133,297		—		133,297		—
Commercial paper		68,708		—		68,708		—
Corporate debt securities		15,774		—		15,774		—
Total assets	$	541,965	$	324,186	$	217,779	$	—
Warrant liabilities	$	54	$	—	$	—	$	54
Total liabilities	$	54	$	—	$	—	$	54

Level 2 assets were valued using quoted prices in active markets for similar securities.

The carrying values of the Company’s prepaid expenses and other current assets, accounts payable and accrued expenses approximate their fair values due to the short-term nature of these assets and liabilities. During the six months ended June 30, 2024 and the twelve months ended December 31, 2023, there were no transfers between Level 1, Level 2 and Level 3.

The Loan Payable is classified as a Level 3 liability. As of June 30, 2024, the carrying value of the Loan Payable approximates its fair value. The Company estimated the fair value of the warrant liabilities using the Black-Scholes model based on key assumption and inputs (see Note 6). The Company utilizes a probability assessment to estimate the likelihood of vesting for the remaining Loan Agreement warrants and allocated the probability of occurrence percentage to the fair values calculated.