Company: ZVRA
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001437749-25-016523
Chunk: 94

Company: ZEVRA THERAPEUTICS, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 94
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  $21,304 
                 
 Securities:                 
 U.S. Treasury securities  $35,711  $35,711  $—  $— 
 Corporate bonds   6,010   —   6,010   — 
 Total assets  $41,721  $35,711  $6,010  $— 

   Warrants
    
   The common stock warrant liabilities were recorded at fair value using the Black-Scholes option pricing model. The following assumptions were used in determining the fair value of the warrant liabilities valued using the Black-Scholes option pricing model as of  March 31, 2025, and  December 31, 2024:

       March 31, 2025    December 31, 2024  
 Risk-free interest rate   3.84% - 4.04%   4.08% - 4.23% 
 Volatility   57.65% - 65.48%   62.14% - 68.68% 
 Dividend yield   0%   0%
 Expected term (years)   0.78 - 3.65   1.02 - 3.89 
 Weighted average fair value  $2.38  $3.25 

       19

   The following table is a reconciliation for the common stock warrant liabilities measured at fair value using Level 3 unobservable inputs (in thousands):

     Balance as of December 31, 2024  $17,804 
 Change in fair value measurement   (4,774)
 Balance as of March 31, 2025  $13,030 

   For the three months ended  March 31, 2025, the changes in fair value of the warrant liabilities primarily resulted from change in the discount rate.
    
   Contingent Consideration
    
   Contingent consideration liabilities relate to the Company's liabilities arising in connection with the CVRs issued as a result of the Merger. The contingent consideration is classified as Level 3 in the fair value hierarchy. The fair value is measured based on a Monte Carlo simulation or a scenario-based method, depending on the earn-out achievement objectives, utilizing projections about future performance. Significant inputs include volatility and projected financial information, including projections representative of a market participant