Company: TEM
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025603
Chunk: 274

Company: Tempus AI, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1
Chunk 274
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), net. For the year ended December 31, 2024, the Company recognized a gain of $18.3 million in Other income (expense), net due to the change in fair value of the warrant asset. The Company classified the warrant asset as Level 2 as they are valued using observable market prices of Personalis Class A common stock. Warrant liability—As discussed in Note 9, the Company issued a $100 million warrant to AstraZeneca. The warrant liability is measured at fair value each reporting period, using a Black-Scholes option pricing model. The Company classified the warrant liability as Level 3 due to the lack of relevant observable market data over fair value inputs such as the expected term. The warrant was terminated for no consideration on December 31, 2024. The Company recognized a net gain of $39.1 million in Other income (expense), net associated with the warrant termination, as a result of the gain recognized from the warrant liability and warrant contract asset termination.

173

The Term Loan Facility and the Note were not recorded at fair value. The fair values of the Term Loan Facility and the Note approximated their carrying values as of December 31, 2024 and 2023. Estimates of the fair values of the Term Loan Facility and the Note are classified as Level 3 due to the lack of relevant observable market data over fair value inputs. The following tables summarize assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2024 and 2023 (in thousands):  

        Fair Value Measurement at Reporting Date Using

        December 31, 2024

        Quoted Pricein ActiveMarket forIdenticalAssets(Level 1)

        SignificantOtherObservableInputs(Level 2)

        SignificantUnobservableInputs(Level 3)

        Assets

        Marketable equity securities
         
        $
        107,309

        $
        107,309

        $
        —

        $
        —

        Fair Value Measurement at Reporting Date Using

        December 31,2023

        Quoted Pricein ActiveMarket forIdenticalAssets(Level 1)

        SignificantOtherObservableInputs(Level 2)

        SignificantUnobservableInputs(Level 3)

        Assets

        Marketable equity securities
         
        $
        31,807

        $
        31,807

        $
        —

        $
        —

        Warrant asset
         
        $
        10,000

        $
        —

        $