STANDARD BIOTOOLS INC. Fair Value Disclosure
10. Fair Value of Financial Instruments
Fair Value of Financial Instruments
The following tables summarize the Company's assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy as of December 31, 2024 (in thousands):
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Fair Value Measurements At Reporting Date Using |
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Total |
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Quoted Prices in Active Markets For Identical Assets (Level 1) |
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Significant Other Observable Inputs (Level 2) |
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Significant Unobservable Inputs (Level 3) |
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Assets: |
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Cash equivalents—money market funds |
|
$ |
141,942 |
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$ |
141,942 |
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|
$ |
— |
|
|
$ |
— |
|
Cash equivalents—U.S. treasury securities |
|
|
2,990 |
|
|
|
— |
|
|
|
2,990 |
|
|
|
— |
|
Short-term investments—U.S. treasury securities |
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126,146 |
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|
|
— |
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|
|
126,146 |
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|
|
— |
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Total assets measured at fair value |
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$ |
271,078 |
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$ |
141,942 |
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$ |
129,136 |
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$ |
— |
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Liabilities: |
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Warrant liabilities |
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$ |
274 |
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$ |
— |
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$ |
— |
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$ |
274 |
|
Contingent consideration |
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5,600 |
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|
— |
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— |
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|
5,600 |
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Total liabilities measured at fair value |
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$ |
5,874 |
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|
$ |
— |
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|
$ |
— |
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|
$ |
5,874 |
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The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy as of December 31, 2023 (in thousands):
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Fair Value Measurements At Reporting Date Using |
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Total |
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Quoted Prices in Active Markets For Identical Assets (Level 1) |
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Significant Other Observable Inputs (Level 2) |
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Significant Unobservable Inputs (Level 3) |
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Assets: |
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Cash equivalents—money market funds |
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$ |
35,385 |
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$ |
35,385 |
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$ |
— |
|
|
$ |
— |
|
Short-term investments—U.S. treasury securities |
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63,191 |
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|
|
— |
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|
63,191 |
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|
|
— |
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Total assets measured at fair value |
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$ |
98,576 |
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|
$ |
35,385 |
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|
$ |
63,191 |
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|
$ |
— |
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There were no transfers within the hierarchy and no changes in the valuation techniques used during the year ended December 31, 2024.
The following table summarizes available-for-sale-securities (in thousands):
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As of December 31, 2024 |
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Maturity (in years) |
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Amortized Cost |
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Unrealized Gains |
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Unrealized Losses |
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Estimated Fair Value |
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Assets: |
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Cash equivalents—money market funds |
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$ |
141,942 |
|
|
$ |
— |
|
|
$ |
— |
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|
$ |
141,942 |
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Cash equivalents—U.S. treasury securities |
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2,989 |
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1 |
|
|
|
— |
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|
2,990 |
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Short-term investments—U.S. treasury securities |
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1 or less |
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125,975 |
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|
171 |
|
|
|
— |
|
|
|
126,146 |
|
Total assets measured at fair value |
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|
$ |
270,906 |
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|
$ |
172 |
|
|
$ |
— |
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|
$ |
271,078 |
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As of December 31, 2023 |
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Maturity (in years) |
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Amortized Cost |
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Unrealized Gains |
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Unrealized Losses |
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Estimated Fair Value |
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Assets: |
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Cash equivalents—money market funds |
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$ |
35,385 |
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$ |
— |
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|
$ |
— |
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|
$ |
35,385 |
|
Short-term investments—U.S. treasury securities |
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1 or less |
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63,169 |
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22 |
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— |
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63,191 |
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Total assets measured at fair value |
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$ |
98,554 |
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$ |
22 |
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$ |
— |
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$ |
98,576 |
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As of December 31, 2024, none of the available-for-sale securities held have been in an unrealized loss position for greater than 12 months. The Company does not intend to sell these investments and it is not likely that the Company will be required to sell these investments before recovery of their amortized cost basis. No allowance for credit losses was recorded.
Liabilities Measured at Fair Value on a Recurring Basis
The following table presents information about the Company's Level 3 liabilities that are measured at fair value on a recurring basis:
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Warrant Liabilities |
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Contingent Consideration |
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Balance at December 31, 2023 |
$ |
— |
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$ |
— |
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Fair value of warrant liabilities assumed in connection with the Merger |
|
906 |
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|
|
— |
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Fair value of contingent consideration recorded in connection with the acquisition of Sengenics |
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— |
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5,600 |
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Change in fair value |
|
(632 |
) |
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|
— |
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Balance at December 31, 2024 |
$ |
274 |
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|
$ |
5,600 |
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Warrant liabilities
The Warrants were valued using Level 2 inputs as of the Closing Date as the Public Warrants were actively traded at that date. Therefore, the Company had directly observable prices for identical instruments as of the Closing Date. Following the Closing Date, and as of December 31, 2024, the Public Warrants were no longer publicly traded (see Note 2), so the Warrants were valued using a binomial lattice model (a special case of the income approach), using the following Level 3 inputs:
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December 31, 2024 |
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January 5, 2024 |
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Volatility |
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75.0 |
% |
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70.2 |
% |
Risk-free rate |
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4.18 |
% |
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4.20 |
% |
Warrant term |
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|
1.7 |
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|
2.7 |
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The following table summarizes amounts transferred into Level 3 of the fair value hierarchy during the year ended December 31, 2024:
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Year Ended December 31, |
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2024 |
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2023 |
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Beginning balance |
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$ |
— |
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$ |
— |
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Transfer in |
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|
906 |
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|
— |
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Unrealized gain |
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(632 |
) |
|
|
— |
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Ending balance |
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$ |
274 |
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|
$ |
— |
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Amount of unrealized gain for the period relating to liabilities at the end of the reporting period |
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$ |
(632 |
) |
|
$ |
— |
|
Contingent consideration
The contingent consideration was valued using a Monte Carlo simulation as of November 21, 2024 and December 31, 2024, using the following Level 3 inputs:
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December 31, 2024 |
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November 21, 2024 |
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Revenue volatility |
|
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15 |
% |
|
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15 |
% |
Risk-free rate |
|
|
4.30 |
% |
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|
4.30 |
% |
Expected Term |
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|
3.5 |
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|
3.6 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 11, 2025 | Showing above |
| 2023 | Mar 1, 2024 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.