Annual report [Section 13 and 15(d), not S-K Item 405]

Fair Value Measurements (Tables)

v3.25.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

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

 

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

66,720

 

 

$

—

 

 

$

—

 

 

$

66,720

 

Total assets measured at fair value

 

$

66,720

 

 

$

—

 

 

$

—

 

 

$

66,720

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities – royalty agreement

 

$

—

 

 

$

—

 

 

$

1,647

 

 

$

1,647

 

Derivative liabilities – contingent value right liability

 

 

—

 

 

 

—

 

 

 

1,978

 

 

 

1,978

 

Total liabilities measured at fair value

 

$

—

 

 

$

—

 

 

$

3,625

 

 

$

3,625

 

 

 

 

December 31, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

7,203

 

 

$

—

 

 

$

—

 

 

$

7,203

 

Total assets measured at fair value

 

$

7,203

 

 

$

—

 

 

$

—

 

 

$

7,203

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities – royalty agreement

 

$

—

 

 

$

—

 

 

$

1,014

 

 

$

1,014

 

Total liabilities measured at fair value

 

$

—

 

 

$

—

 

 

$

1,014

 

 

$

1,014

 
Schedule of Fair Value Measurement Key Assumptions

The key assumptions used to determine the fair value of the derivative liabilities – royalty agreement at December 31, 2024 and 2023 are as follows:

 

 

 

December 31,

 

 

 

2024

 



2023

 

Discount rate

 

 

20.0

%

 

 

25.0

%

Probability rate of achieving FDA approval of a product

 

 

56.6

%

 

 

50.0

%

Expected term to FDA regulatory approval of a product

 

2.5 years

 



3.5 years

 
Royalty Agreement [Member]  
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Fair Value Measurement Derivative Liabilities

The following table provides a reconciliation of the liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):

 

Derivative Liabilities – Royalty Agreement

 

 

 

2024

 

 

2023

 

Derivative liabilities - royalty agreement

 

 

 

 

 

 

Balance at January 1

 

$

1,014

 

 

$

1,499

 

Fair value adjustments on derivative liabilities

 

 

633

 

 

 

(485

)

Balance at December 31

 

$

1,647

 

 

$

1,014

 
Contingent Value Right Liability [Member]  
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Fair Value Measurement Derivative Liabilities

Derivative Liabilities – Contingent Value Right Liability

 

 

 

2024

 

 

2023

 

Derivative liabilities - contingent value rights

 

 

 

 

 

 

Balance at January 1

 

$

—

 

 

$

—

 

Fair value adjustments on derivative liabilities

 

 

1,978

 

 

 

—

 

Balance at December 31

 

$

1,978

 

 

$

—