Fair Value Measurements

6 Months Ended

Jun. 30, 2025

The following tables summarize financial assets that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):


	June 30, 2025
	Total		Level 1		Level 2		Level 3
Money market funds (included in cash and cash equivalents)	$	25,802	$	25,802	$	—	$	—
U.S. government bonds		101,548		—		101,548		—
Government agency obligations		20,795		—		20,795		—
Corporate debt obligations		19,534		—		19,534		—
Commercial paper		32,755		—		32,755		—
Asset-backed securities		3,511		—		3,511		—
Total fair value of assets	$	203,945	$	25,802	$	178,143	$	—


	December 31, 2024
	Total		Level 1		Level 2		Level 3
Money market funds (included in cash and cash equivalents)	$	26,169	$	26,169	$	—	$	—
U.S. government bonds		109,657		—		109,657		—
Government agency obligations		40,544		—		40,544		—
Corporate debt obligations		32,353		—		32,353		—
Commercial paper		30,349		—		30,349		—
Asset-backed securities		5,520		—		5,520		—
Foreign debt securities		2,498		—		2,498		—
Long-term investments (Note 5)		1,292		—		—		1,292
Total fair value of assets	$	248,382	$	26,169	$	220,921	$	1,292

In addition, restricted cash of $5.2 million as of June 30, 2025 and December 31, 2024, collateralized by the Company’s cash equivalents, are financial assets measured at fair value and are Level 1 financial instruments under the fair value hierarchy.

The Company’s investments in preferred stock, common stock and warrants of Affini-T Therapeutics, Inc. (“Affini-T”) (see Note 5) are Level 3 financial assets. Given the challenging financing environment for cell therapy companies in early clinical development as well as recent updates provided by Affini-T management, the Company determined the need to assess the equity value of its investments in Affini-T on June 30, 2025, considering potential alternative outcomes under a hybrid method. The hybrid method is a hybrid between the probability-weighted expected returns method (the “PWERM”) and the option-pricing model backsolve method (the “OPM”). Using the PWERM, the equity value under scenarios including the sale of Affini-T, the liquidation of Affini-T, and Affini-T continuing as a going concern, were weighted based on an estimate of the probability of each event occurring. The Company recognized a loss related to the change in fair value of $1.3 million during the three and six months ended June 30, 2025. No adjustment was made to the value of the Company’s equity investment in Affini-T during the three and six months ended June 30, 2024.

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial assets (in thousands):


	Three Months Ended June 30,					Six Months Ended June 30,
	2025			2024		2025			2024
Beginning balance	$	1,292		$	8,521	$	1,292		$	8,521
Change in fair value included in other income (expense), net		(1,292	)		—		(1,292	)		—
Ending balance	$	—		$	8,521	$	—		$	8,521

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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+ Details

Metagenomi, Inc. 10-Q