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Fair Value Measurement
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows:
Fair Value as of September 30, 2024
(in thousands)Level 1Level 2Level 3Total
Assets:
Cash equivalents$40,083 $— $— $40,083 
Marketable securities— 56,996 — 56,996 
Derivative asset— 11 — 11 
Total fair value$40,083 $57,007 $— $97,090 
Liabilities:
Common stock warrants (Public)$2,896 $— $— $2,896 
Common stock warrants (Private Placement)— 1,358 — 1,358 
Earnout liability— — 4,184 4,184 
Derivative liability— 49 — 49 
Total fair value$2,896 $1,407 $4,184 $8,487 
Fair Value as of December 31, 2023
(in thousands)Level 1Level 2Level 3Total
Assets:
Cash and cash equivalents $75,502 $— $— $75,502 
Marketable securities— 82,761 — 82,761 
Total fair value$75,502 $82,761 $— $158,263 
Liabilities:
Common stock warrants (Public)$913 $— $— $913 
Common stock warrants (Private Placement)— 428 — 428 
Earnout liability— — 1,783 1,783 
Derivative liability— 300 — 300 
Total fair value$913 $728 $1,783 $3,424 
The Company performs routine procedures such as comparing prices obtained from independent sources to ensure that appropriate fair values are recorded. The cash, cash equivalents and Public Warrants are categorized as Level 1 instruments as the fair value was determined based on the unadjusted quoted prices are available in active markets for identical assets or liabilities as of the reporting date. The marketable securities, derivative asset and derivative liability are categorized as Level 2 instruments as the estimated fair value was determined based on the estimated or actual bids and offers of the marketable securities in an over-the-counter market on the last business day of the period. The Warrants are classified within Level 1 or Level 2 because the transfer of Private Placement Warrants to anyone outside of certain permitted transferees of Artius Acquisition Partners LLC (the “Sponsor”) would result in the Private Placement Warrants having substantially the same terms as the Public Warrants, the Company determined that the fair value of each Private Placement Warrant is consistent with that of a Public Warrant. Accordingly, the Private Placement Warrants are classified as Level 2 financial instruments.
The value of the earnout liability is classified as Level 3 measurements under the fair value hierarchy, as these liabilities have been valued based on significant inputs not observable in the market (see Note 9 “Earnout Liability”). A loss of $2.9 million and $2.4 million during the three and nine months ended September 30, 2024, respectively, and a gain of $18.8 million and $39.1 million during the three and nine months ended September 30, 2023, respectively, was recorded on the unaudited condensed consolidated statements of operations and comprehensive (loss) income in the (loss) gain in fair value of earnout liability.
The following table summarizes the activities for the earnout liability:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands)2024202320242023
Balance at beginning of period$1,243 $22,386 $1,783 $42,533 
Loss (gain) in fair value of earnout liability2,941 (18,757)2,401 (39,137)
Other— — — 233 
Balance at end of period$4,184 $3,629 $4,184 $3,629 

As of September 30, 2024 and December 31, 2023, the carrying values of accounts receivable and unbilled receivable, other receivables, accounts payable, and accrued expenses approximate their respective fair values due to their short-term nature. We have determined the fair value of notes payable approximates the carrying value due to the standard terms of the arrangement including but not limited to the amount borrowed, the term, and the interest rate.
Marketable Securities
The Company’s marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. Amortized cost net of unrealized gain (loss) is equal to fair value. The following table summarized the marketable securities by major security type as follows:
As of September 30, 2024
(in thousands)Amortized CostUnrealized GainsUnrealized LossesFair Value
Commercial paper$1,097 $— $— $1,097 
Corporate bonds7,781 42 (20)7,803 
Asset-backed securities38,935 78 (1,262)37,751 
U.S. government and agency securities9,996 23 (21)9,998 
Foreign government and agency securities372 — (25)347 
Total marketable securities$58,181 $143 $(1,328)$56,996 
As of December 31, 2023
(in thousands)Amortized CostUnrealized GainsUnrealized LossesFair Value
Corporate bonds$21,869 $26 $(847)$21,048 
Asset-backed securities52,199 26 (2,289)49,936 
U.S. government and agency securities11,706 — (270)11,436 
Foreign government and agency securities372 — (31)341 
Total marketable securities$86,146 $52 $(3,437)$82,761 
The realized gains and losses are included in other (expenses) income, net on the unaudited condensed consolidated statements of operations and comprehensive (loss) income.
We sold marketable securities for proceeds of $1,456.5 million and $3,057.7 million during the nine months ended September 30, 2024 and 2023, respectively. As a result of those sales, we realized a loss of $0.4 million and $0.4 million during the three and nine months ended September 30, 2024, respectively, and a gain of $2.4 million and $1.7 million during the three and nine months ended September 30, 2023, respectively. We regularly review our available-for-sale marketable securities in an unrealized loss position and evaluate the current expected credit loss by considering factors such as historical experience, market data, issuer-specific factors, and current economic conditions. The aggregate fair value of the marketable securities in an unrealized loss position was $39.7 million and $73.2 million as of September 30, 2024 and December 31, 2023, respectively. The unrealized losses were attributable to changes in interest rates that impacted the value of the investments, and not related to increased credit risk. Accordingly, we have not recorded an allowance for credit losses associated with these investments.
The contractual maturities of the investments classified as marketable securities are as follows:
As of September 30, 2024
(in thousands)Mature within one yearMature after one year through two yearsMature over two yearsFair Value
Commercial paper$1,097 $— $— $1,097 
Corporate bonds2,654 3,979 1,170 7,803 
Asset-backed securities243 — 37,508 37,751 
U.S. government and agency securities7,968 — 2,030 9,998 
Foreign government and agency securities347 — — 347 
Total marketable securities$12,309 $3,979 $40,708 $56,996 
As of December 31, 2023
(in thousands)Mature within one yearMature after one year through two yearsMature over two yearsFair Value
Corporate bonds$20,756 $292 $— $21,048 
Asset-backed securities238 1,806 47,892 49,936 
U.S. government and agency securities8,929 — 2,507 11,436 
Foreign government and agency securities341 — — 341 
Total marketable securities$30,264 $2,098 $50,399 $82,761 
Derivative Asset and Liabilities
The Company entered into foreign currency derivative contracts with financial institutions to reduce foreign exchange risk related to certain marketable securities denominated in foreign currency. Foreign currency derivative contracts are marked-to-market at the end of each reporting period with gains and losses recognized as other income (expenses). The Company recognized a loss of less than $0.1 million and a net gain of $0.2 million during the three and nine months ended September 30, 2024, respectively, and a net gain of $0.1 million and $0.6 million during the three and nine months ended September 30, 2023, respectively, on the fair value adjustment of the foreign currency derivative contracts. The notional amount of foreign currency derivative contracts as of September 30, 2024 and December 31, 2023 was $5.5 million and $14.7 million, respectively.