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Fair Value Measurement (Tables)
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of fair value financial assets measured on a recurring basis The following tables present the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2023, and December 31, 2022:
June 30, 2023
(in thousands)(Level 1)(Level 2)(Level 3)Total
Assets:
Money market funds$16,521 $— $— $16,521 
U.S. government securities7,344 — — 7,344 
Commercial paper— 3,968 — 3,968 
Total assets$23,865 $3,968 $— $27,833 
Liabilities:
Debt derivative liabilities$— $— $4,271 $4,271 
Total liabilities$— $— $4,271 $4,271 
December 31, 2022
(in thousands)(Level 1)(Level 2)(Level 3)Total
Assets:
Money market funds$10,354 $— $— $10,354 
U.S. government securities12,316 — — 12,316 
Commercial paper— 21,189 — 21,189 
Total assets$22,669 $21,189 $— $43,859 
Liabilities:
Debt derivative liabilities$— $— $4,518 $4,518 
Total liabilities$— $— $4,518 $4,518 
Schedule of fair value instruments classified Level 3
The changes in Level 3 liabilities measured at fair value on a recurring basis for the three and six months ended June 30, 2023, were as follows (in thousands):
Three Months Ended June 30, 2023
Balance, April 1, 2023$4,703 
Change in fair value included in net loss(432)
Balance, June 30, 2023$4,271 
Six Months Ended June 30, 2023
Beginning Balance, January 1, 2023$4,518 
Change in fair value included in net loss(247)
Ending Balance, June 30, 2023$4,271 
The changes in Level 3 liabilities measured at fair value on a recurring basis for the three and six months ended June 30, 2022, were as follows (in thousands):
Three Months Ended June 30, 2022
Balance, April 1, 2022$5,310 
Change in fair value included in net loss(434)
Balance, June 30, 2022$4,876 
Six Months Ended June 30, 2022
Beginning Balance, January 1, 2022$5,562 
Change in fair value included in net loss(686)
Ending Balance, June 30, 2022$4,876 
Schedule of significant inputs in liability valuation
The significant inputs that are included in the valuation of the debt derivative liability - first tranche include:
June 30, 2023December 31, 2022
Input
Remaining term (years)4 years4.5 years
Maturity dateJune 30, 2027June 30, 2027
Coupon rate
9.5% - 13.1%
9.5% -12.7%
Revenue participation paymentsMaximum each yearMaximum each year
Discount rate13.4% (1)13.9% (1)
Probability of mandatory prepayment before 20245.0 %(1)5.0 %(1)
Estimated timing of mandatory prepayment event before 2024December 31, 2023(1)December 31, 2023(1)
Probability of mandatory prepayment 2024 or after15.0 %(1)15.0 %(1)
Estimated timing of mandatory prepayment event 2024 or afterMarch 31, 2026(1)March 31, 2026(1)
Probability of optional prepayment event5.0 %(1)5.0 %(1)
Estimated timing of optional prepayment eventDecember 31, 2025(1)December 31, 2025(1)
(1)Represents a significant unobservable input
The significant inputs that are included in the valuation of the debt derivative liability - second tranche include:
June 30, 2023December 31, 2022
Input
Remaining term (years)5 years5.5 years
Maturity dateJune 30, 2028June 30, 2028
Coupon rate
9.5% - 13.1%
9.5% -12.7%
Revenue participation paymentsMaximum each yearMaximum each year
Discount rate16.9 %(1)17.56 %(1)
Probability of mandatory prepayment before 20245.0% (1)5.0% (1)
Estimated timing of mandatory prepayment event before 2024December 31, 2023(1)December 31, 2023(1)
Probability of mandatory prepayment 2024 or after15.0% (1)15.0% (1)
Estimated timing of mandatory prepayment event 2024 or afterMarch 31, 2026(1)March 31, 2026(1)
Probability of optional prepayment event5.0% (1)5.0% (1)
Estimated timing of optional prepayment eventDecember 31, 2025(1)December 31, 2025(1)
(1)Represents a significant unobservable input