| Schedule of Assets Measured on Recurring Basis |
The following table summarizes the Company's financial instruments measured at fair value on a recurring basis as of June 30, 2024. There were no financial instruments measured at fair value as of December 31, 2023.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at Reporting Date Using |
|
|
|
|
Quoted Prices in Active Markets for Identical Assets |
|
Significant Other Observable Inputs |
|
Significant Unobservable Inputs |
|
|
Total |
|
(Level 1) |
|
(Level 2) |
|
(Level 3) |
As of June 30, 2024 |
|
|
|
|
|
|
|
|
| Cash Equivalents: |
|
|
|
|
|
|
|
|
| Money Market Funds |
|
$ |
3,131,374 |
|
|
$ |
3,131,374 |
|
|
$ |
— |
|
|
$ |
— |
|
| US Treasury Securities |
|
1,835,590 |
|
|
— |
|
|
1,835,590 |
|
|
— |
|
| Total Cash Equivalents Measured at Fair Value |
|
$ |
4,966,964 |
|
|
$ |
3,131,374 |
|
|
$ |
1,835,590 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
| Short-term Investments: |
|
|
|
|
|
|
|
|
| US Treasuries |
|
$ |
3,271,849 |
|
|
$ |
— |
|
|
$ |
3,271,849 |
|
|
$ |
— |
|
| Government Agency Securities |
|
13,356,808 |
|
|
— |
|
|
13,356,808 |
|
|
— |
|
| Corporate Debt Securities |
|
4,180,151 |
|
|
— |
|
|
4,180,151 |
|
|
— |
|
| Asset Backed Securities |
|
433,863 |
|
|
— |
|
|
433,863 |
|
|
— |
|
| Total Short-term Investments Measured at Fair Value |
|
$ |
21,242,671 |
|
|
$ |
— |
|
|
$ |
21,242,671 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
| Total Assets Measured at Fair Value |
|
$ |
26,209,635 |
|
|
$ |
3,131,374 |
|
|
$ |
23,078,261 |
|
|
$ |
— |
|
|
| Schedule of Liabilities Measured on Recurring Basis |
The following table provides information for liabilities measured at fair value on a recurring basis using Level 3 inputs:
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2024 |
|
December 31, 2023 |
| Contingent Consideration: |
|
|
|
|
|
|
|
| Non-current |
$ |
5,236,999 |
|
|
$ |
5,128,959 |
|
| Total Contingent Consideration |
$ |
5,236,999 |
|
|
$ |
5,128,959 |
|
|
| Schedule of Unobservable Level 3 Inputs |
After the initial valuation, the Company generally uses its best estimate to measure contingent consideration at each subsequent reporting period using the following unobservable Level 3 inputs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Technique |
|
Unobservable Inputs |
|
June 30, 2024 |
|
December 31, 2023 |
|
Discounted cash flow |
|
Payment discount rate |
|
15.0 |
% |
|
13.1 |
% |
| Bayon |
|
|
Payment period |
|
2025 - 2027 |
|
2025 - 2027 |
| Panoptes |
|
|
Payment period |
|
2026 - 2028 |
|
2026 - 2028 |
| Jade |
|
|
Payment period |
|
2027 |
|
2027 |
| Bayon |
|
|
Probability of success for payment |
|
42% - 71% |
|
42% - 71% |
| Panoptes |
|
|
Probability of success for payment |
|
30% - 33% |
|
30% - 33% |
| Jade |
|
|
Probability of success for payment |
|
56% |
|
56% |
The Company engaged a third-party valuation firm to complete a quantitative assessment of in-process R&D as of August 31, 2023, which includes the following unobservable Level 3 inputs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Technique |
|
Unobservable Inputs |
|
Discount Rate |
| KIO-101 |
Relief from Royalty Method |
|
Probability of success for next development phase |
17% |
|
30 |
% |
| KIO-104 |
Multi-Period Excess Earnings Method |
|
Probability of success for next development phase |
17% to 18% |
|
25 |
% |
| KIO-201 |
Relief from Royalty Method |
|
Probability of success for next development phase |
17% to 47% |
|
30 |
% |
| KIO-301 |
Multi-Period Excess Earnings Method |
|
Probability of success for next development phase |
17% to 67% |
|
25 |
% |
|