Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2024

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:

		December 31, 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	$	66,641	$	-	$	-	$	66,641
U.S. government and agency securities	Level 2		25,237		5		-		25,242
Total cash equivalents			91,878		5		-		91,883
Short-term marketable securities:
U.S. government and agency securities	Level 2		19,137		7		-		19,144
Corporate debt securities	Level 2		5,785		2		-		5,787
Total short-term marketable securities			24,922		9		-		24,931
Total financial assets		$	116,800	$	14	$	-	$	116,814
Financial liabilities:
Long-term financial liabilities:
Contingent consideration	Level 3		108,968		-		-		108,968
Success payment liabilities	Level 3		4,556		-		-		4,556
Total long-term financial liabilities			113,524		-		-		113,524
Total financial liabilities		$	113,524	$	-	$	-	$	113,524

		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
Changes in fair value – gain		(2,888	)		(9,248	)		(1,311	)
Balance as of December 31, 2024	$	108,968		$	4,236		$	320

Success Payment Liabilities

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:

	December 31, 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)	14.1	6.2	15.1	7.2

Cobalt Contingent Consideration

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:

	December 31, 2024		December 31, 2023
Unobservable Input	Range	Weighted-Average	Range	Weighted-Average
Discount rates	11.3% – 12.3%	11.9%	11.7% – 12.4%	11.9%
Probability of milestone achievement	5.0% –55.0%	25.7%	5.0% – 55.0%	25.7%