Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2025

Summary of Financial Assets Measured at Fair Value on Recurring Basis

The following table presents our financial assets measured at fair value on a recurring basis by level within the fair value hierarchy for the periods indicated (in thousands):


		March 31, 2025
	Valuation	Amortized		Unrealized		Unrealized			Fair
	Hierarchy	Cost		Gains		Losses			Value
Assets:
Money market funds	Level 1	$	9,301	$	—	$	—		$	9,301
Commercial paper	Level 2		101,313		—		(28	)		101,285
U.S. government bonds	Level 2		178,916		347		(15	)		179,248
Agency bonds	Level 2		52,517		68		(2	)		52,583
Corporate debt securities	Level 2		8,331		12		(3	)		8,340
U.S. Treasury securities	Level 2		45,551		2		(2	)		45,551
Agency discount securities	Level 2		5,784		—		—			5,784
Total cash equivalents and marketable securities		$	401,713	$	429	$	(50	)	$	402,092
Classified as:
Cash equivalents									$	78,708
Marketable securities										323,384
Total cash equivalents and marketable securities									$	402,092


		December 31, 2024
	Valuation	Amortized		Unrealized		Unrealized			Fair
	Hierarchy	Cost		Gains		Losses			Value
Assets:
Money market funds	Level 1	$	22,645	$	—	$	—		$	22,645
Commercial paper	Level 2		51,982		14		(5	)		51,991
U.S. government bonds	Level 2		169,860		439		(29	)		170,270
Agency bonds	Level 2		63,753		111		(5	)		63,859
Corporate debt securities	Level 2		6,154		15		(3	)		6,166
U.S. Treasury securities	Level 2		44,499		10		—			44,509
Agency discount securities	Level 2		18,940		2		—			18,942
Total cash equivalents and marketable securities		$	377,833	$	591	$	(42	)	$	378,382
Classified as:
Cash equivalents									$	64,487
Marketable securities										313,895
Total cash equivalents and marketable securities									$	378,382

Schedule of Contractual Maturities of Estimated Fair Value of Investments in Marketable Securities

The following table summarizes the estimated fair value of investments in marketable securities by effective contractual maturity dates as of March 31, 2025 (in thousands):


Within one year	$	369,008
After one year through two years		33,084
Total cash equivalents and marketable securities	$	402,092

Schedule of Changes in Fair Value of Liabilities Measured at Fair Value on a Recurring Basis

The reconciliation of our warrant liability measured at fair value on a recurring basis using unobservable inputs (Level 3) is as follows (in thousands):


	Warrant Liability
Balance outstanding as of December 31, 2024	$	516
Change in fair value		(221	)
Balance outstanding as of March 31, 2025	$	295

The warrants had a fair value of $0.3 million as of March 31, 2025, based on a Black-Scholes valuation with the following assumptions: risk-free interest rate of 4.2%, no dividends, expected volatility of 87.8% and expected term of 9.5 years.

89bio, Inc. 10-Q