Fair Value Measurements

6 Months Ended

Jun. 30, 2025

The Company measures the fair value of money market funds based on quoted prices in active markets for identical securities. Investments also include commercial paper, government securities, and corporate debt securities which are valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. The carrying amounts reflected in the condensed consolidated balance sheets for cash, prepaid expenses and other current assets, accounts payable, and accrued expenses and other current liabilities approximate their fair values, due to their short-term nature.

Assets measured at fair value on a recurring basis as of June 30, 2025 were as follows (in thousands):


	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash equivalents and short-term investments:
Money market funds, included in cash equivalents	$	23,889	$	23,889	$	—	$	—
Commercial paper	48,037		—		48,037		—
Government securities	62,646		53,172		9,474		—
Corporate debt securities	97,128		—		97,128		—
Total cash equivalents and short-term investments	231,700		77,061		154,639		—
Long-term investments:
Government securities	2,510		2,510		—		—
Corporate debt securities	14,674		—		14,674		—
Total long-term investments	17,184		2,510		14,674		—
Total cash equivalents and investments	$	248,884	$	79,571	$	169,313	$	—

Assets measured at fair value on a recurring basis as of December 31, 2024 were as follows (in thousands):


	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash equivalents and short-term investments:
Money market funds, included in cash equivalents	$	23,324	$	23,324	$	—	$	—
Commercial paper	46,773		—		46,773		—
Government securities	59,170		46,813		12,357		—
Corporate debt securities	121,854		—		121,854		—
Total cash equivalents and short-term investments	251,121		70,137		180,984		—
Long-term investments:
Government securities	10,888		10,888		—		—
Corporate debt securities	25,745		—		25,745		—
Total long-term investments	36,633		10,888		25,745		—
Total cash equivalents and investments	$	287,754	$	81,025	$	206,729	$	—

There were no liabilities measured at fair value on a recurring basis as of June 30, 2025 or December 31, 2024. There were no changes in valuation techniques, nor were there any transfers among the fair value hierarchy levels during the six months ended June 30, 2025 or during the year ended December 31, 2024.

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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-Topic 820
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-Topic 820
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 940
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+ Details

Tourmaline Bio, Inc. 10-Q