Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2025

The following tables present information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis:


	June 30, 2025
	Level 1		Level 2		Level 3		Total
Financial assets
Cash equivalents:
Money market funds	$	—	$	130,331	$	—	$	130,331
Total cash equivalents		—		130,331		—		130,331
Available-for-sale securities (Note 4):
Treasury bills		—		42,287		—		42,287
Government bonds		—		86,890		—		86,890
Total available-for-sale securities		—		129,177		—		129,177
Total financial assets	$	—	$	259,508	$	—	$	259,508

Financial liabilities
Derivative liabilities (Note 2):	$	—	$	—	$	5,700	$	5,700
Total financial liabilities	$	—	$	—	$	5,700	$	5,700


	December 31, 2024
	Level 1		Level 2		Level 3		Total
Financial assets
Cash equivalents:
Money market funds	$	—	$	18,088	$	—	$	18,088
Treasury bills		—		17,434		—		17,434
Total cash equivalents		—		35,522		—		35,522
Available-for-sale securities (Note 4):
Treasury bills		—		27,895		—		27,895
Government bonds		—		40,790		—		40,790
Total available-for-sale securities		—		68,685		—		68,685
Total financial assets	$	—	$	104,207	$	—	$	104,207
Financial liabilities
Derivative liabilities (Note 2):	$	—	$	—	$	3,150	$	3,150
Total financial liabilities	$	—	$	—	$	3,150	$	3,150

The significant unobservable inputs used in valuing the developmental milestone derivative liabilities at each measurement date are as follows:


	June 30, 2025		December 31, 2024
Unobservable Input	Range	Average	Range	Average
Probability of achieving certain development milestones	28.0% - 70.0%	49.0%	28.0% - 70.0%	49.0%
Volatility	93.0%	93.0%	85.0%	85.0%
Discount Rate	3.7% - 4.3%	4.0%	4.2% - 4.3%	4.3%
Timing of achieving certain development milestones	0.5 - 3.2 years	1.8 years	1.0 - 3.7 years	2.3 years

The following table presents a roll forward of activity associated with the Company’s derivative liabilities measured using Level 3 inputs:


	Developmental Milestone Derivative Liabilities
Fair value of derivative liabilities as of January 1, 2025	$	3,150
Change in fair value of derivative liabilities		2,550
Fair value of derivative liabilities as of June 30, 2025	$	5,700

Solid Biosciences Inc. 10-Q