Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS

v3.24.2
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2024
FAIR VALUE MEASUREMENTS  
FAIR VALUE MEASUREMENTS

5. FAIR VALUE MEASUREMENTS

The Company uses the following three-tier fair value hierarchy, which prioritizes the inputs used in measuring the fair values for certain of its assets and liabilities:

Level 1 is based on observable inputs, such as quoted prices in active markets;

Level 2 is based on inputs other than the quoted prices in active markets that are observable either directly or indirectly; and

Level 3 is based on unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions.

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Items measured at fair value on a recurring basis include money market funds.

The following fair value hierarchy table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the fair value hierarchy of the inputs the Company utilized to determine such fair value (in thousands):

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2024

​

​

Quoted Prices in

​

Significant

​

​

​

​

​

​

​

​

Active Markets

​

Other

​

Significant

​

​

 

​

​

for Identical

​

Observable

​

Unobservable

​

​

 

​

​

Items

​

Inputs

​

Inputs

​

​

 

​

    

(Level 1)

    

(Level 2)

    

(Level 3)

    

Total

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

Money market funds

​

$

17,031

​

$

—

​

$

—

​

$

17,031

Equity securities

​

​

177

​

​

—

​

​

—

​

​

177

Other investments

​

​

—

​

​

—

​

​

2,000

​

​

2,000

Total assets

​

$

17,208

​

$

—

​

$

2,000

​

$

19,208

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

​

Quoted Prices in

​

Significant 

​

​

​

​

​

​

​

​

 Active Markets

​

Other

​

Significant

​

​

​

​

​

 for Identical

​

 Observable 

​

 Unobservable 

​

​

​

​

​

 Items

​

Inputs

​

Inputs

​

​

​

​

    

 (Level 1)

    

 (Level 2)

    

 (Level 3)

    

Total

Assets:

 

​

  

 

​

  

 

​

  

 

​

  

Money market funds

​

$

40,799

​

$

—

​

$

—

​

$

40,799

Equity securities

​

​

625

​

​

—

​

​

—

​

​

625

Other investments

​

​

—

​

​

—

​

​

2,000

​

​

2,000

Total assets

​

$

41,424

​

$

—

​

$

2,000

​

$

43,424

​

Equity securities include investments made via publicly-traded securities. The Company has determined that the estimated fair value of its equity securities is reported as Level 1 financial assets as they are based on quoted market prices in active markets for identical assets. During the year ended December 31, 2021, the Company made a $20.0 million investment in equity securities of a publicly-traded company. The Company records this investment at fair value within short-term investments, which was $0.2 million as of June 30, 2024. During the three and six months ended June 30, 2024, the Company recorded an unrealized loss of $0.3 million and an unrealized loss of $0.4 million due to the change in fair value of the equity securities in interest and other expense, net in the condensed consolidated statements of operations. During the three and six months ended June 30, 2023, the Company recorded an unrealized gain of $0.3 million and an unrealized loss of $0.1 million, respectively, in interest and other (expense) income, net in the condensed consolidated statements of operations, due to the change in fair value of the equity securities.

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Other investments include investments made via convertible debt instruments totaling $2.0 million which is recorded in other noncurrent assets in the condensed consolidated balance sheets. The other investments are reported as a Level 3 financial asset because the methodology used to develop the estimated fair values includes significant unobservable inputs reflecting management’s own assumptions. Assumptions used in fair valuing convertible debt instruments include the rights and obligations of the notes the Company holds as well as the probability of a qualified financing event, acquisition, or change in control. During the three and six months ended June 30, 2024 and 2023, the Company did not recognize any gains or losses on convertible debt instruments.

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The 2027 Notes are valued as a single liability measured at amortized cost, as no other features require bifurcation and recognition as derivatives.

​

There were no transfers between fair value measure levels during the six months ended June 30, 2024 and 2023. The following table presents information about the Company’s movement in Level 3 assets measured at fair value (in thousands):

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​

​

​

​

​

​

​

​

​

Six Months Ended June 30, 

​

​

2024

    

2023

Balance at beginning of period

​

$

2,000

​

$

2,000

Balance at end of period

​

$

2,000

​

$

2,000

​

The following table presents information about the Company’s movement in Level 3 liabilities measured at fair value (in thousands):

​

​

​

​

​

​

​

​

​

​

Six Months Ended June 30, 

​

​

2024

    

2023

Balance at beginning of period

​

$

—

​

$

2,587

Payment of contingent consideration liability

​

​

—

​

​

(2,390)

Balance at end of period

​

$

—

​

$

197

​