Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

3.FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 (in thousands), and the fair value hierarchy of the valuation techniques utilized. The Company classifies its assets and liabilities as either short- or long-term based on maturity and anticipated realization dates.

	June 30, 2024
	Level 1		Level 2		Level 3		Total
Financial assets:
Cash equivalents	$	242,431	$	—	$	—	$	242,431
Financial liabilities:
Directors' Deferred Share Unit Liability	$	966	$	—	$	—	$	966
2022 USD Financing Warrant Liability	$	—	$	—	$	30,680	$	30,680
	December 31, 2023
	Level 1		Level 2		Level 3		Total
Financial assets:
Cash equivalents	$	96,682	$	—	$	—	$	96,682
Financial liabilities:
Directors' Deferred Share Unit Liability	$	387	$	—	$	—	$	387
2022 USD Financing Warrant Liability	$	—	$	—	$	16,476	$	16,476

There were no transfers into or out of Level 1, Level 2, or Level 3 during the six months ended June 30, 2024 and the year ended December 31, 2023.

The fair value of the warrant liability is measured at fair value on a recurring basis. The warrants to purchase 7,058,823 Common Shares issued in our underwritten public offering that closed on September 30, 2022 (the “2022 USD Financing Warrants”) are classified as Level 3 in the fair value hierarchy and are determined using the Black-Scholes option pricing model using the following assumptions:

	As of June 30, 2024	As of December 31, 2023
Share price	$7.21	$3.66
Expected volatility	89.00%	94.72%
Risk-free rate	4.50%	3.87%
Expected life	3.25 years	3.75 years