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Fair Value Measurement
 3 Months Ended
Mar. 31, 2025
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 March 31, 2025
(in thousands)Level 1Level 2Level 3Total
Assets:
Cash equivalents$30,351 $— $— $30,351 
Marketable securities— 39,213 — 39,213 
Total fair value$30,351 $39,213 $— $69,564 
Liabilities:
Common stock warrants (Public)$1,217 $— $— $1,217 
Common stock warrants (Private Placement)— 571 — 571 
Earnout liability— — 24 24 
Derivative liability— 23 — 23 
Total fair value$1,217 $594 $24 $1,835 
Fair Value as of December 31, 2024
(in thousands)Level 1Level 2Level 3Total
Assets:
Cash equivalents$46,953 $— $— $46,953 
Marketable securities— 46,613 — 46,613 
Derivative asset— 15 — 15 
Total fair value$46,953 $46,628 $— $93,581 
Liabilities:
Common stock warrants (Public)$3,108 $— $— $3,108 
Common stock warrants (Private Placement)— 1,458 — 1,458 
Earnout liability— — 2,486 2,486 
Total fair value$3,108 $1,458 $2,486 $7,052 
The Company performs routine procedures such as comparing prices obtained from independent sources to ensure that appropriate fair values are recorded. The 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 Private Placement Warrants are classified within 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 for additional details). A gain of $2.5 million and $1.5 million during the three months ended March 31, 2025 and 2024, respectively, was recorded on the unaudited condensed consolidated statements of operations and comprehensive loss in the gain in fair value of earnout liability.
The following table summarizes the activities for the earnout liability during the three months ended March 31, 2025 and 2024:
Three Months Ended
March 31,
(in thousands)20252024
Balance at beginning of period$2,486 $1,783 
Gain in fair value of earnout liability(2,462)(1,518)
Balance at end of period$24 $265 

As of March 31, 2025 and December 31, 2024, 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 and Canadian government research and development program liability 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 summarizes the marketable securities by major security type as follows:
As of March 31, 2025
(in thousands)Amortized CostUnrealized GainsUnrealized LossesFair Value
Corporate bonds$3,858 $23 $— $3,881 
Asset-backed securities32,913 47 (1,179)31,781 
U.S. government and agency securities3,550 1 — 3,551 
Total marketable securities$40,321 $71 $(1,179)$39,213 
As of December 31, 2024
(in thousands)Amortized CostUnrealized GainsUnrealized LossesFair Value
Corporate bonds$3,741 $30 $— $3,771 
Asset-backed securities36,309 39 (1,349)34,999 
U.S. government and agency securities7,829 14 — 7,843 
Total marketable securities$47,879 $83 $(1,349)$46,613 
The realized gains and losses are included in other expenses, net in the unaudited condensed consolidated statements of operations and comprehensive loss.
We sold marketable securities for proceeds of $282.4 million and $441.4 million during the three months ended March 31, 2025 and 2024, respectively. As a result of those sales, we realized a loss of $0.1 million during each of the three months ended March 31, 2025 and 2024. 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 $23.0 million and $26.6 million as of March 31, 2025 and December 31, 2024, respectively. The unrealized losses were attributable to changes in interest rates that impacted the value of the investments, and not related to increased credit risk. Accordingly, we have not recorded an allowance for credit losses associated with these investments.
The contractual maturities of the investments classified as marketable securities are as follows:
As of March 31, 2025
(in thousands)Mature within one yearMature after one year through two yearsMature over two yearsFair Value
Corporate bonds$— $3,180 $701 $3,881 
Asset-backed securities— — 31,781 31,781 
U.S. government and agency securities1,895 — 1,656 3,551 
Total marketable securities$1,895 $3,180 $34,138 $39,213 
As of December 31, 2024
(in thousands)Mature within one yearMature after one year through two yearsMature over two yearsFair Value
Corporate bonds$— $2,869 $902 $3,771 
Asset-backed securities— — 34,999 34,999 
U.S. government and agency securities5,984 — 1,859 7,843 
Total marketable securities$5,984 $2,869 $37,760 $46,613 
Derivative Assets 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 net loss of less than $0.1 million and a net gain of $0.3 million during the three months ended March 31, 2025 and 2024, respectively, on the fair value adjustment of the foreign currency derivative contracts. The notional amount of foreign currency derivative contracts as of March 31, 2025 and December 31, 2024 was $2.9 million and $1.2 million, respectively.