Company: BLLN
Filing Date: 2025-09-17
Form Type: DRS/A
Source: 0001193125-25-206347
Chunk: 340

Company: BillionToOne, Inc.
Filing Date: 2025-09-17
Form: DRS/A
Chunk 340
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 fair value using quoted prices in active markets (Level 1 inputs). The carrying amounts of the Company’s other financial instruments, which include cash, accounts receivable, and accounts payable approximate their fair values due to their short-term nature. The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value, and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows:

| Level 1 input |     | Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.                                                                                         |
| Level 2 input |     | Inputs other than the quoted prices included within Level 1 that are observable for the assets or liability, either directly or indirectly.                                                                                            |
| Level 3 input |     | Unobservable inputs for the assets or liability. Unobservable inputs shall be used to measure fair value to the extent that relevant observable inputs are not available, thereby allowing for situations in which there is little, if 
 any, market activity for the asset or liability at the measurement date.                                                                                                                                                               |

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s money market funds are quoted in an active market and classified within Level 1 of the fair value hierarchy, which are measured at fair value based on the closing price as of the reporting date. The Company’s convertible notes and term loan, which the Company elected the fair value option for, and warrant liabilities are classified as Level 3 of the fair value hierarchy and are recorded at fair value on a recurring basis. During the years ended December 31, 2023 and 2024, there was no change in the fair value of the convertible notes or loan agreement that was related to changes in credit risk. Accounts Receivable and Allowances The Company regularly assesses the collectability of accounts and reviews the allowance by considering factors such as historical experience, the age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. Based on this assessment for credit losses the Company determined an allowance for credit losses was not needed given the payors from whom such receivables