Fair Value Measurements

12 Months Ended

Dec. 31, 2024

Fair Value Measurements

Fair Value Measurements

Note 5 – Fair Value Measurements

The carrying amounts of certain financial instruments, such as cash equivalents, accounts receivable, accounts payable, and accrued liabilities, approximate fair value due to their relatively short maturities. The difference between the amortized cost and fair value of available-for-sale securities as of December 31, 2024 was not material. As of December 31, 2024, 100% of the Company’s marketable securities had a maturity of less than one year. As of December 31, 2024, 99% of the Company’s investments had a maturity between one to five years and 1% of the Company’s investments had a maturity between five and ten years.

Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis

As of December 31, 2024 and 2023, the Company’s financial assets and liabilities measured and recorded at fair value on a recurring basis were classified within the fair value hierarchy as follows:

		December 31, 2024
		Level 1		Level 2		Level 3		Total
Assets	Balance Sheet Classification
Commercial paper	Marketable securities	$	47,046	$	—	$	—	$	47,046
Corporate bonds	Marketable securities	$	28,614	$	—	$	—	$	28,614
Corporate bonds	Investments	$	173,369	$	—	$	—	$	173,369
Government bonds	Investments	$	35,904	$	—	$	—	$	35,904
U.S. treasuries	Marketable securities	$	17,124	$	—	$	—	$	17,124
Bifurcated embedded derivative	Loan receivable from equity method investee	$	—	$	—	$	584	$	584
Liabilities
Public Warrants	Warrant liabilities	$	5,537	$	—	$	—	$	5,537
Private Placement Warrants	Warrant liabilities	$	—	$	3,198	$	—	$	3,198

		December 31, 2023
		Level 1		Level 2		Level 3		Total
Assets	Balance Sheet Classification
Commercial paper	Marketable securities	$	84,909	$	—	$	—	$	84,909
Corporate bonds	Marketable securities	$	48,135	$	—	$	—	$	48,135
Corporate bonds	Investment	$	191,338	$	—	$	—	$	191,338
Government bonds	Marketable securities	$	8,461	$	—	$	—	$	8,461
Government bonds	Investment	$	48,228	$	—	$	—	$	48,228
Liabilities
Public Warrants	Warrant liabilities	$	2,505	$	—	$	—	$	2,505
Private Placement Warrants	Warrant liabilities	$	—	$	1,722	$	—	$	1,722

There were no transfers in and out of Level 3 fair value hierarchy during the years ended December 31, 2024 and 2023.

The following table provides the available-for-sale securities purchased during the years ended December 31, 2024 and 2023.

	For the Years Ended December 31,
	2024		2023
Available-for-sale securities purchased	$	216,193	$	327,591

Fair Value of Bifurcated Embedded Derivative

The fair value of the bifurcated embedded derivative (the “Derivative”) has been estimated using the with-and-without method as of December 31, 2024 using Level 3 unobservable inputs and Level 2 directly or indirectly observable inputs, including estimated credit rating, risk-free interest rates, and expected future cash flows. Material increases or decreases in any of those inputs may result in a significantly higher or lower fair value measurement. Material increases or decreases in expected future cash flows may result in a significantly higher or lower estimated fair value of the Derivative. See Note 11 – Related Party Transactions for more information.

Fair Value of Warrants

The fair value of the private placement warrants issued as part of the Company’s business combination in 2021 (the “Private Placement Warrants”) have been estimated using a Black-Scholes model as of December 31, 2024 and 2023. The estimated fair value of the Private Placement Warrants is determined using Level 2 directly or indirectly observable inputs. Inherent in a Black-Scholes model are assumptions related to expected stock-price volatility, expected life, risk-free interest rate, and dividend yield. Material increases (or decreases) in any of those inputs may result in a significantly higher (or lower) fair value measurement. The Company

estimates the volatility of its Private Placement Warrants based on implied volatility from the Company’s publicly-traded warrants (the “Public Warrants” and, together with the Private Placement Warrants, the “Warrants”) and from historical volatility of select peer companies’ common stock that matches the expected remaining life of the Warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve for a maturity similar to the expected remaining life of the Warrants. The dividend yield is based on the historical rate, which the Company anticipates remaining at zero. The fair value of the Public Warrants has been measured based on the quoted price of such warrants on the Nasdaq Stock Market, a Level 1 input.

The following table provides quantitative information regarding Level 2 inputs used in the recurring valuation of the Private Placement Warrants as of their measurement dates.

	December 31,
	2024			2023
Exercise price	$	11.50		$	11.50
Stock price	$	1.89		$	1.45
Volatility		124.8	%		95.0	%
Term (in years)		1.94			2.94
Risk-free rate		4.16	%		3.94	%

The following table provides a rollforward (per Warrant) of the Public Warrants measured at fair value using Level 1 inputs and Private Placement Warrants measured at fair value using Level 2 inputs.

	Public Warrants		Private Placement Warrants
	Level 1 Fair Value		Level 2 Fair Value
December 31, 2023	$	0.19	$	0.28
Change in fair value	$	0.23	$	0.24
December 31, 2024	$	0.42	$	0.52

See Note 6 – Warrant Liabilities for more information.