Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Summary of Assets and Liabilities That Are Measured At Fair Value On Recurring Basis

The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands):

		As of June 30, 2023
	Classification	Total		Level 1		Level 2		Level 3
Assets:
Money market funds	Cash and cash equivalents	$	1,066,056	$	1,066,056	$	—	$	—
Synlogic, Inc. warrants (1)	Investments		1,095		—		1,095		—
Marketable equity securities	Investments		19,876		19,876		—		—
Loan receivable	Prepaid expenses and other current assets		358		—		—		358
Notes receivable	Other non-current assets		38,950		—		30,000		8,950
Total assets		$	1,126,335	$	1,085,932	$	31,095	$	9,308
Liabilities:
Public Warrants	Warrant liabilities	$	8,970	$	8,970	$	—	$	—
Private Placement Warrants (3)	Warrant liabilities		5,176		—		141		5,035
Contingent consideration	Accrued expenses and other current liabilities		22,945		—		—		22,945
Contingent consideration	Other non-current liabilities		7,617		—		—		7,617
Total liabilities		$	44,708	$	8,970	$	141	$	35,597

		As of December 31, 2022
	Classification	Total		Level 1		Level 2		Level 3
Assets:
Money market funds	Cash and cash equivalents	$	1,089,026	$	1,089,026	$	—	$	—
Synlogic, Inc. warrants (1)	Investments		1,937		—		1,937		—
Marketable equity securities (2)	Investments		25,714		21,312		4,402		—
Notes receivable	Other non-current assets		37,660		—		30,000		7,660
Total assets		$	1,154,337	$	1,110,338	$	36,339	$	7,660
Liabilities:
Public Warrants	Warrant liabilities	$	6,900	$	6,900	$	—	$	—
Private Placement Warrants (3)	Warrant liabilities		3,968		—		108		3,860
Contingent consideration	Accrued expenses and other current liabilities		6,378		—		—		6,378
Contingent consideration	Other non-current liabilities		18,095		—		—		18,095
Total liabilities		$	35,341	$	6,900	$	108	$	28,333

(1) The fair value of Synlogic, Inc. warrants is calculated as the quoted price of the underlying common stock, less the unpaid exercise price of the warrants.

(2) Marketable equity securities classified as Level 2 reflect a discount for lack of marketability due to regulatory sales restrictions.

(3) The fair value of Private Placement Warrants classified as Level 2 is equivalent to that of Public Warrants as the transfer of Private Placement Warrants to anyone other than the initial purchasers or any of their permitted transferees results in the Private Placement Warrants having substantially the same terms as the Public Warrants.

Schedule of Change in the Fair Value of the Warrant Liability

The following table provides a reconciliation of notes and loans receivable measured at fair value using Level 3 significant unobservable inputs for the six months ended June 30 (in thousands):

	2023			2022
Balance at January 1,	$	7,660		$	11,559
Additions		3,137			—
Change in fair value		(1,489	)		(292	)
Balance at June 30,	$	9,308		$	11,267

Summary of Fair Value Measurements Inputs

The following table provides quantitative information regarding Level 3 inputs used in the recurring valuation of the Private Placement Warrants as of their measurement dates:

	June 30, 2023			December 31, 2022
Exercise price	$	11.50		$	11.50
Stock price	$	1.86		$	1.69
Volatility		79.0	%		71.5	%
Term (in years)		3.21		3.71
Risk-free interest rate		4.49	%		4.11	%

Summary of recurring Level 3 fair value measurements of contingent consideration liabilities

The following table provides quantitative information regarding Level 3 inputs used in the fair value measurements of contingent consideration liabilities as of the periods presented:

			June 30, 2023			December 31, 2022
Contingent Consideration Liability	Valuation Technique	Unobservable Input	Range			Range
Earnout payments (FGen, Dutch DNA, Circularis and Altar acquisitions)	Probability-weighted present value	Probability of payment	1% - 95%			2% - 100%
		Discount rate	13.5% - 14.6%			12.2% - 13.1%
Earnout payments (Dutch DNA acquisition)	Discounted cash flow	Projected years of payments	2025 - 2028			2025 - 2028
		Discount rate		11.5	%		12.0	%

Contingent Consideration [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Schedule of Change in the Fair Value of the Warrant Liability

The following table provides a reconciliation of the contingent consideration measured at fair value using Level 3 significant unobservable inputs for the six months ended June 30 (in thousands):

	2023			2022
Balance at January 1,	$	24,473		$	8,467
Additions		—			12,306
Change in fair value		8,453			300
Settlements and payments		(2,364	)		(2,644	)
Balance at June 30,	$	30,562		$	18,429

Private Placement Warrants [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Schedule of Change in the Fair Value of the Warrant Liability

The following table provides a reconciliation of the Private Placement Warrants measured at fair value using Level 3 significant unobservable inputs for the six months ended June 30 (in thousands):

	2023		2022
Balance at January 1,	$	3,860	$	58,558
Change in fair value		1,175		(49,549	)
Balance at June 30,	$	5,035	$	9,009