Repare Therapeutics | Precision Oncology

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10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________________ to ___________________

Commission File Number: 001-39335

Repare Therapeutics Inc.

(Exact Name of Registrant as Specified in its Charter)


Québec	Not applicable
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
7171 Frederick-Banting, Building 2, Suite 270 St-Laurent, Québec, Canada	H4S 1Z9
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (857) 412-7018

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common shares, no par value	RPTX	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 1, 2024, there were 42,510,708 of the registrant’s common shares, no par value per share, outstanding.

Table of Contents


		Page
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS		1
PART I.	FINANCIAL INFORMATION	3
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations and Comprehensive Loss	4
	Condensed Consolidated Statements of Shareholders’ Equity	5
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	31
PART II.	OTHER INFORMATION	32
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 3.	Defaults Upon Senior Securities	34
Item 4.	Mine Safety Disclosures	34
Item 5.	Other Information	35
Item 6.	Exhibits	36
Signatures

SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our strategy, future financial condition, future operations, research and development costs, plans and objectives of management, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “design,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “positioned,” “potential,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. Although we believe that we have a reasonable basis for each forward-looking statement contained in this Quarterly Report on Form 10-Q, we caution you that these statements are based on a combination of facts and factors currently known by us and our expectations of the future, about which we cannot be certain.

The forward-looking statements in this Quarterly Report on Form 10-Q include, among other things, statements about:

•

the initiation, timing, progress and results of our current and future preclinical studies and clinical trials and related preparatory work and the period during which the results of the trials will become available, as well as our research and development programs;

•

our estimates regarding expenses, future revenue, capital requirements and needs for additional financing;

•

our ability to obtain regulatory approval of lunresertib, camonsertib and any of our other current and future product candidates that we develop;

•

our ability to identify and develop additional product candidates using our SNIPRx platform;

•

business disruptions affecting the initiation, patient enrollment, development and operation of our clinical trials, including a public health emergency or pandemic;

•

the evolving impact of macroeconomic events, including health pandemics, changes in inflation, the U.S. Federal Reserve raising interest rates, disruptions in access to bank deposits or lending commitments due to bank failures and the Russia-Ukraine and Middle-East conflicts, on our operations, supply chains, general economic conditions, our ability to raise additional capital, and the continuity of our business, including our preclinical studies and clinical trials;

•

our ability to enroll patients in clinical trials, to timely and successfully complete those trials and to receive necessary regulatory approvals;

•

the timing of completion of enrollment and availability of data from our current preclinical studies and clinical trials, including ongoing clinical trials of lunresertib, camonsertib, RP-1664 and RP-3467;

•

the expected timing of filings with regulatory authorities for any product candidates that we develop;

•

our expectations regarding the potential market size and the rate and degree of market acceptance for any current or future product candidates that we develop;

•

our ability to receive any milestone or royalty payments under our collaboration and license agreements;

•

the effects of competition with respect to lunresertib, camonsertib, or any of our other current or future product candidates, as well as innovations by current and future competitors in our industry;

•

our ability to fund our working capital requirements;

•

our intellectual property position, including the scope of protection we are able to establish, maintain and enforce for intellectual property rights covering our product candidates;

•

our financial performance and our ability to effectively manage our anticipated growth;

•

our ability to obtain additional funding for our operations;

•

the expected impact of the strategic reprioritization of our research and development activities, including with respect to anticipated cost savings; and

•

other risks and uncertainties, including those listed under the section titled “Risk Factors” in this Quarterly Report and elsewhere in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2024.

Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management and expected market growth, and involve known and unknown risks, uncertainties and other factors including, without limitation, risks, uncertainties and assumptions regarding the impact of the macroeconomic events on our business, operations, strategy, goals and

anticipated timelines, our ongoing and planned preclinical activities, our ability to initiate, enroll, conduct or complete ongoing and planned clinical trials, our timelines for regulatory submissions and our financial position that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You are urged to carefully review the disclosures we make concerning these risks and other factors that may affect our business and operating results in this Quarterly Report on Form 10-Q. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Except as required by law, we do not intend, and undertake no obligation, to update any forward-looking information to reflect events or circumstances.

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Repare Therapeutics Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(Amounts in thousands of U.S. dollars, except share data)


	As of September 30,			As of December 31,
	2024			2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	80,541		$	111,268
Marketable securities		98,891			112,359
Income tax receivable		10,974			10,813
Other current receivables		3,253			4,499
Prepaid expenses		6,744			4,749
Total current assets		200,403			243,688
Property and equipment, net		2,748			4,215
Operating lease right-of-use assets		2,473			3,326
Income tax receivable		586			2,276
Other assets		179			396
TOTAL ASSETS	$	206,389		$	253,901
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	10,655		$	2,400
Accrued expenses and other current liabilities		18,212			24,057
Operating lease liability, current portion		2,217			2,400
Deferred revenue, current portion		—			10,222
Total current liabilities		31,084			39,079
Operating lease liability, net of current portion		346			1,010
Deferred revenue, net of current portion		—			1,730
TOTAL LIABILITIES		31,430			41,819
SHAREHOLDERS’ EQUITY
Preferred shares, no par value per share; unlimited shares authorized as of September 30, 2024 and December 31, 2023; 0 shares issued and outstanding as of September 30, 2024, and December 31, 2023		—			—
Common shares, no par value per share; unlimited shares authorized as of September 30, 2024 and December 31, 2023; 42,510,708 and 42,176,041 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively		486,674			483,350
Additional paid-in capital		77,272			61,813
Accumulated other comprehensive income		140			28
Accumulated deficit		(389,127	)		(333,109	)
Total shareholders’ equity		174,959			212,082
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	206,389		$	253,901

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

Repare Therapeutics Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(Amounts in thousands of U.S. dollars, except share and per share data)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Revenue:
Collaboration agreements	$	—		$	2,159		$	53,477		$	38,086
Operating expenses:
Research and development, net of tax credits		28,401			32,709			91,446			98,327
General and administrative		6,444			7,868			23,379			25,116
Restructuring		1,527			—			1,527			—
Total operating expenses		36,372			40,577			116,352			123,443
Loss from operations		(36,372	)		(38,418	)		(62,875	)		(85,357	)
Other income (expense), net
Realized and unrealized (loss) gain on foreign exchange		(19	)		(40	)		18			(137	)
Interest income		2,512			3,312			8,374			10,228
Other expense		(42	)		(32	)		(95	)		(73	)
Total other income, net		2,451			3,240			8,297			10,018
Loss before income taxes		(33,921	)		(35,178	)		(54,578	)		(75,339	)
Income tax (expense) recovery		(485	)		16,299			(1,440	)		9,573
Net loss	$	(34,406	)	$	(18,879	)	$	(56,018	)	$	(65,766	)
Other comprehensive income:
Unrealized gain on available-for-sale marketable securities	$	274		$	172		$	112		$	176
Total other comprehensive income		274			172			112			176
Comprehensive loss	$	(34,132	)	$	(18,707	)	$	(55,906	)	$	(65,590	)
Net loss per share attributable to common shareholders - basic and diluted	$	(0.81	)	$	(0.45	)	$	(1.32	)	$	(1.56	)
Weighted-average common shares outstanding - basic and diluted		42,452,617			42,102,685			42,377,635			42,077,857

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

Repare Therapeutics Inc.

Condensed Consolidated Statements of Shareholders’ Equity

(Unaudited)

(Amounts in thousands of U.S. dollars, except share data)


	Common Shares				Additional Paid-in			Accumulated Other Comprehensive			Accumulated			Total Shareholders’
	Shares		Amount		Capital			Income (Loss)			Deficit			Equity
Balance, December 31, 2022		42,036,193	$	482,032	$	37,226		$	(428	)	$	(239,313	)	$	279,517
Share-based compensation expense		—		—		6,062			—			—			6,062
Exercise of stock options		2,000		7		(3	)		—			—			4
Issuance of common shares under the 2020 Employee Share Purchase Plan		41,703		638		(229	)		—			—			409
Other comprehensive income		—		—		—			193			—			193
Net loss		—		—		—			—			(34,941	)		(34,941	)
Balance, March 31, 2023		42,079,896	$	482,677	$	43,056		$	(235	)	$	(274,254	)	$	251,244
Share-based compensation expense		—		—		6,265			—			—			6,265
Exercise of stock options		14,050		62		(22	)		—			—			40
Other comprehensive loss		—		—		—			(189	)		—			(189	)
Net loss		—		—		—			—			(11,946	)		(11,946	)
Balance, June 30, 2023		42,093,946	$	482,739	$	49,299		$	(424	)	$	(286,200	)	$	245,414
Share-based compensation expense		—		—		6,377			—			—			6,377
Exercise of stock options		1,400		6		(2	)		—			—			4
Issuance of common shares under the 2020 Employee Share Purchase Plan		33,905		439		(159	)		—			—			280
Other comprehensive income		—		—		—			172			—			172
Net loss		—		—		—			—			(18,879	)		(18,879	)
Balance, September 30, 2023		42,129,251	$	483,184	$	55,515		$	(252	)	$	(305,079	)	$	233,368

Balance, December 31, 2023		42,176,041	$	483,350	$	61,813		$	28		$	(333,109	)	$	212,082
Share-based compensation expense		—		—		6,475			—			—			6,475
Exercise of stock options		8,485		27		(10	)		—			—			17
Issuance of common shares on vesting of restricted share units		200,262		2,488		(2,488	)		—			—			—
Issuance of common shares under the 2020 Employee Share Purchase Plan		60,618		510		(152	)		—			—			358
Other comprehensive loss		—		—		—			(141	)		—			(141	)
Net income		—		—		—			—			13,162			13,162
Balance, March 31, 2024		42,445,406	$	486,375	$	65,638		$	(113	)	$	(319,947	)	$	231,953
Share-based compensation expense		—		—		6,519			—			—			6,519
Exercise of stock options		127		—		—			—			—			—
Other comprehensive loss		—		—		—			(21	)		—			(21	)
Net loss		—		—		—			—			(34,774	)		(34,774	)
Balance, June 30, 2024		42,445,533	$	486,375	$	72,157		$	(134	)	$	(354,721	)	$	203,677
Share-based compensation expense		—		—		5,248			—			—			5,248
Issuance of common shares under the 2020 Employee Share Purchase Plan		65,175		299		(133	)		—			—			166
Other comprehensive income		—		—		—			274			—			274
Net loss		—		—		—			—			(34,406	)		(34,406	)
Balance, September 30, 2024		42,510,708	$	486,674	$	77,272		$	140		$	(389,127	)	$	174,959

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

Repare Therapeutics Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Amounts in thousands of U.S. dollars)


	Nine Months Ended September 30,
	2024			2023
Cash Flows From Operating Activities:
Net loss for the period	$	(56,018	)	$	(65,766	)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation expense		18,242			18,704
Depreciation expense		1,467			1,445
Non-cash lease expense		1,810			1,637
Foreign exchange (gain) loss		(35	)		71
Net accretion of marketable securities		(4,298	)		(5,809	)
Changes in operating assets and liabilities:
Prepaid expenses		(1,995	)		167
Other current receivables		1,246			559
Other non-current assets		204			100
Accounts payable		8,256			4,587
Accrued expenses and other current liabilities		(5,829	)		(916	)
Operating lease liability, current portion		(682	)		117
Income taxes		1,529			(19,291	)
Operating lease liability, net of current portion		(1,066	)		(1,771	)
Deferred revenue		(11,952	)		(32,836	)
Net cash used in operating activities		(49,121	)		(99,002	)
Cash Flows From Investing Activities:
Purchases of property and equipment		—			(1,540	)
Proceeds from maturities of marketable securities		132,015			222,000
Purchase of marketable securities		(114,133	)		(174,298	)
Net cash provided by investing activities		17,882			46,162
Cash Flows From Financing Activities:
Proceeds from exercise of stock options		17			48
Proceeds from issuance of common stock under the 2020 Employee Share Purchase Plan		524			689
Net cash provided by financing activities		541			737
Effect of exchange rate fluctuations on cash held		(29	)		(49	)
Net Decrease In Cash And Cash Equivalents		(30,727	)		(52,152	)
Cash and cash equivalents at beginning of period		111,268			159,521
Cash and cash equivalents at end of period	$	80,541		$	107,369

Supplemental Disclosure Of Cash Flow Information:
Property and equipment purchases incurred but not yet paid	$	—		$	399
Right-of-use asset obtained in exchange for new operating lease liability	$	957		$	149

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

REPARE THERAPEUTICS INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in U.S. dollars, unless otherwise specified)

1. Organization and Nature of Business

Repare Therapeutics Inc. (“Repare” or the “Company”) is a precision medicine oncology company focused on the development of synthetic lethality-based therapies for patients with cancer. The Company is governed by the Business Corporations Act (Québec). The Company’s common shares are listed on the Nasdaq Global Select Market under the ticker symbol “RPTX”.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and as amended by Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”).

The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements as of and for the year ended December 31, 2023, and, in the opinion of management, reflect all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company’s consolidated financial position as of September 30, 2024, the consolidated results of its operations for the three and nine months ended September 30, 2024 and 2023, its statements of shareholders’ equity for the three and nine months ended September 30, 2024 and 2023 and its consolidated cash flows for the nine months ended September 30, 2024 and 2023.

These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the accompanying notes for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2024 (the “Annual Report”). The condensed consolidated balance sheet data as of December 31, 2023 presented for comparative purposes was derived from the Company’s audited consolidated financial statements but does not include all disclosures required by U.S. GAAP. The results for the three and nine months ended September 30, 2024 are not necessarily indicative of the operating results to be expected for the full year or for any other subsequent interim period.

The Company’s significant accounting policies are disclosed in the audited consolidated financial statements for the year ended December 31, 2023 included in the Annual Report. There have been no changes to the Company's significant accounting policies since the date of the audited consolidated financial statements for the year ended December 31, 2023 included in the Annual Report.

Principles of Consolidation

These unaudited condensed consolidated financial statements of the Company include the accounts of the Company and its wholly-owned subsidiary, Repare Therapeutics USA Inc. (“Repare USA”), which was incorporated under the laws of Delaware on June 1, 2017. The financial statements of Repare USA are prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group transactions, balances, income, and expenses are eliminated in full upon consolidation.

Smaller Reporting Company

Repare qualified as a “smaller reporting company” under the Exchange Act as of June 30, 2024 because the market value of its common shares held by non-affiliates was less than $200 million as of June 30, 2024. As a smaller reporting company, Repare may rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. For so long as the Company remains a smaller reporting company, it is permitted and intends to rely on such exemptions from certain disclosure and other requirements that are applicable to other public companies that are not smaller reporting companies.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in consolidated financial statements and accompanying notes. Significant estimates and assumptions reflected in these unaudited condensed consolidated financial statements include, but are not limited to, estimates related to revenue recognition, accrued research and development expenses, share-based compensation and income taxes. The Company bases its estimates on historical experience and other market specific or other relevant assumptions that it believes to be reasonable under the

circumstances. Actual results could differ from those estimates. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known.

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2023, the FASB amended the guidance in ASU 280, Segment Reporting, to require a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Public entities with a single reportable segment are required to provide the new disclosures and all the disclosures currently required under ASC 280. The new guidance is effective for public entities in fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently assessing the impact of this amendment on its consolidated financial statements.

In December 2023, the FASB amended the guidance in ASU 740, Income Taxes, to provide disaggregated income tax disclosures on the rate reconciliation and income taxes paid. The new guidance is effective for public entities in fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently assessing the impact of this amendment on its consolidated financial statements.

3. Cash and Cash Equivalents and Marketable Securities

Cash and cash equivalents and marketable securities were comprised of the following:


	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
As of September 30, 2024
Cash and cash equivalents:
Cash	$	47,586	$	—	$	—		$	47,586
Money market funds		29,970		—		—			29,970
Commercial paper		2,985		—		—			2,985
Total cash and cash equivalents:	$	80,541	$	—	$	—		$	80,541
Marketable securities:
Commercial paper	$	77,473	$	102	$	—		$	77,575
Corporate debt securities		21,278		38		—			21,316
Total marketable securities	$	98,751	$	140	$	—		$	98,891

As of December 31, 2023
Cash and cash equivalents:
Cash	$	44,462	$	—	$	—		$	44,462
Money market funds		36,991		—		—			36,991
Commercial paper		29,811		4		—			29,815
Total cash and cash equivalents:	$	111,264	$	4	$	—		$	111,268
Marketable securities:
U.S. Treasury and government-sponsored enterprises	$	22,434	$	—	$	(25	)	$	22,409
Commercial paper		89,901		60		(11	)		89,950
Total marketable securities	$	112,335	$	60	$	(36	)	$	112,359

Interest receivable was $0.3 million and $0.4 million as of September 30, 2024 and December 31, 2023, respectively, and is included in other current receivables.

The Company held available-for-sale marketable securities with an aggregate fair value of nil and $58.6 million in an immaterial, unrealized loss position as of September 30, 2024 and December 31, 2023, respectively, as shown in the table above. These marketable securities have been in an unrealized gain and loss position for less than twelve months. The unrealized losses as of December 31, 2023, were not attributed to credit risk but were primarily associated with changes in interest rates and market liquidity. The Company does not intend to sell these securities and it is more likely than not that it will hold these investments for a period of time sufficient to recover the amortized cost. As a result, the Company did not record an allowance for credit losses or other impairment charges for its marketable securities for the nine months ended September 30, 2024 and 2023.

The Company recognized a net unrealized gain of $0.3 million and $0.2 million in other comprehensive income in the three months ended September 30, 2024 and 2023, respectively, and a net unrealized gain of $0.1 million and $0.2 million in the nine months ended September 30, 2024 and 2023, respectively, in relation to its cash and cash equivalents and marketable securities.

The maturities of the Company’s marketable securities as of September 30, 2024 and December 31, 2023 are less than one year.

4. Fair Value Measurements

Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

•

Level 1 – Quoted prices in active markets for identical assets or liabilities.

•

Level 2 – Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

•

Level 3 – Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The following table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine such fair values:


Description	Financial Assets		Level 1		Level 2		Level 3
	(in thousands)
As of September 30, 2024
Assets
Cash equivalents:
Money market funds	$	29,970	$	29,970	$	—	$	—
Commercial paper		2,985		—		2,985		—
Total cash equivalents		32,955		29,970		2,985		—
Marketable securities:
Commercial paper		77,575		—		77,575		—
Corporate debt securities		21,316		—		21,316		—
Total marketable securities		98,891		—		98,891		—
Total financial assets	$	131,846	$	29,970	$	101,876	$	—

As of December 31, 2023
Assets
Cash equivalents:
Money market funds	$	36,991	$	36,991	$	—	$	—
Commercial paper		29,815		—		29,815		—
Total cash equivalents		66,806		36,991		29,815		—
Marketable securities:
U.S. Treasury and government-sponsored enterprises		22,409		—		22,409		—
Commercial paper		89,950		—		89,950		—
Total marketable securities		112,359		—		112,359		—
Total financial assets	$	179,165	$	36,991	$	142,174	$	—

When developing fair value estimates, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. When available, the Company uses quoted market prices to measure the fair value. In determining the fair values at each date presented above, the Company relied on quoted prices for similar securities in active markets or using other inputs that are observable or can be corroborated by observable market data.

During the nine months ended September 30, 2024, there were no transfers between fair value measure levels.