Fair Value Measurements

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 5. Fair Value Measurements

The following tables show the Company’s financial assets measured at fair value on a recurring basis and the level of inputs used in such measurements as of June 30, 2024 and December 31, 2023 (in thousands):

	June 30, 2024
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value		Fair Value Level
Assets
Cash and cash equivalents:
Cash	$	1,082	$	—	$	—		$	1,082
Money market funds		11,007		—		—			11,007	Level 1
Commercial paper		32,990		—		(17	)		32,973	Level 2
U.S. government securities		2,685		—		—			2,685	Level 2
Total cash and cash equivalents		47,764		—		(17	)		47,747
Short-term investments:
U.S. government securities		39,291		—		(66	)		39,225	Level 2
Total short-term investments		39,291		—		(66	)		39,225
Total assets measured at fair value	$	87,055	$	—	$	(83	)	$	86,972

	December 31, 2023
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value		Fair Value Level
Assets
Cash and cash equivalents:
Cash	$	3,649	$	—	$	—		$	3,649
Money market funds		14,968		—		—			14,968	Level 1
Commercial paper		34,416		—		(18	)		34,398	Level 2
U.S. agency securities		1,985		1		—			1,986	Level 2
U.S. government securities		1,983		—		—			1,983	Level 2
Total cash and cash equivalents		57,001		1		(18	)		56,984
Short-term investments:
Commercial paper		495		—		—			495	Level 2
U.S. agency securities		1,976		—		—			1,976	Level 2
U.S. government securities		54,720		7		(3	)		54,724	Level 2
Total short-term investments		57,191		7		(3	)		57,195
Total assets measured at fair value	$	114,192	$	8	$	(21	)	$	114,179

Marketable debt securities at June 30, 2024 have maturities due in less than 12 months. No security has been in a continuous unrealized loss position for more than 12 months and the Company does not consider any of its marketable debt securities to be impaired.

Tempus Warrants

The Black-Scholes option-pricing model was used to estimate fair value of the warrants issued to Tempus AI, Inc. ("Tempus") at the date of issuance, November 28, 2023, and at each subsequent balance sheet date. Assumptions used are listed below, which are Level 3 fair value inputs. Expected term is equal to the remaining contractual periods of each of the two warrants. Expected volatility was based on the Company's actual historical volatility over the expected terms of the warrants. The risk-free interest rate was based on the U.S. Treasury yield curve over the expected terms of the warrants. Refer to Note 8 for further information about the warrants issued to Tempus.

	As of June 30, 2024		As of March 31, 2024		As of December 31, 2023
Expected term (in years)	0.50 - 1.50		0.75 - 1.75		1.00 - 2.00
Volatility	79.67 - 99.80%		103.91 - 106.32%		102.55 - 108.46%
Risk-free interest rate	4.90 - 5.33%		4.70 - 5.21%		4.23 - 4.79%
Dividend yield	–%		–%		–%
Total fair value of Tempus Warrants (in thousands)	$	2,288	$	5,262	$	10,027

The following table sets forth a summary of the changes in fair value of the Tempus Warrants, which are classified as Level 3 financial instruments (in thousands):

Warrant Liabilities	Three months ended June 30, 2024			Six months ended June 30, 2024
Beginning balance	$	5,262		$	10,027
Change in fair value—recognized as gain within Other income (expense), net in the consolidated statements of operations		(2,974	)		(7,739	)
Ending balance	$	2,288		$	2,288