Fair Value Assets and Liabilities Measured on Recurring Basis

The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy:


		September 30, 2024
	Valuation Hierarchy	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
		(in thousands)
Financial assets:
Cash equivalents:
Money market funds	Level 1	$	62,053	$	-	$	-		$	62,053
U.S. government and agency securities	Level 2		40,605		11		-			40,616
Corporate debt securities	Level 2		386		-		-			386
Total cash equivalents			103,044		11		-			103,055
Short-term marketable securities:
U.S. government and agency securities	Level 2		65,209		36		(1	)		65,244
Corporate debt securities	Level 2		6,759		8		-			6,767
Total short-term marketable securities			71,968		44		(1	)		72,011
Total financial assets		$	175,012	$	55	$	(1	)	$	175,066
Financial liabilities:
Long-term financial liabilities:
Contingent consideration	Level 3		111,856		-		-			111,856
Success payment liabilities	Level 3		15,115		-		-			15,115
Total long-term financial liabilities			126,971		-		-			126,971
Total financial liabilities		$	126,971	$	-	$	-		$	126,971


		December 31, 2023
	Valuation Hierarchy	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
		(in thousands)
Financial assets:
Cash equivalents:
Money market funds	Level 1	$	70,315	$	-	$	-		$	70,315
U.S. government and agency securities	Level 2		33,091		3		-			33,094
Corporate debt securities	Level 2		1,062		-		-			1,062
Total cash equivalents			104,468		3		-			104,471
Short-term marketable securities:
U.S. government and agency securities	Level 2		57,924		7		(78	)		57,853
Corporate debt securities	Level 2		13,817		9		(1	)		13,825
Total short-term marketable securities			71,741		16		(79	)		71,678
Other assets	Level 3		359		-		-			359
Total financial assets		$	176,568	$	19	$	(79	)	$	176,508
Financial liabilities:
Long-term financial liabilities:
Contingent consideration	Level 3		109,606		-		-			109,606
Success payment liabilities	Level 3		12,799		-		-			12,799
Total long-term financial liabilities			122,405		-		-			122,405
Total financial liabilities		$	122,405	$	-	$	-		$	122,405

Changes in Estimated Fair Value of Level 3 Financial Liabilities

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities:


	Contingent Consideration			Cobalt Success Payment Liability			Harvard Success Payment Liability
	(in thousands)
Balance as of December 31, 2023	$	109,606		$	11,160		$	1,639
Changes in fair value – expense		5,384			27,920			4,703
Balance as of March 31, 2024		114,990			39,080			6,342
Changes in fair value – gain		(3,369	)		(20,687	)		(3,888	)
Balance as of June 30, 2024		111,621			18,393			2,454
Changes in fair value – expense (gain)		235			(4,909	)		(823	)
Balance as of September 30, 2024	$	111,856		$	13,484		$	1,631

Summary of Estimated Fair Value of Liabilities using Unobservable Inputs

The fair values of the Cobalt Success Payments and Harvard Success Payments were calculated using the following unobservable inputs:


	September 30, 2024		December 31, 2023
Unobservable Input	Cobalt	Harvard	Cobalt	Harvard
Expected stock price volatility	75.0%	75.0%	72.5%	72.5%
Expected term (years)	14.4	6.5	15.1	7.2

Summary of Estimated Fair Value of Liabilities using Unobservable Inputs

The fair value of the Cobalt Contingent Consideration was calculated using the following unobservable inputs:


	September 30, 2024		December 31, 2023
Unobservable Input	Range	Weighted-Average	Range	Weighted-Average
Discount rates	10.7% – 11.7%	11.3%	11.7% – 12.4%	11.9%
Probability of milestone achievement	5.0% –55.0%	25.7%	5.0% – 55.0%	25.7%