Achieve Life Sciences, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis, and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair value (in thousands):


March 31, 2024	Level 1		Level 2		Level 3		Total
Assets
Money market securities (cash equivalents)	$	64,927	$	—	$	—	$	64,927
Restricted cash		20		—		—		20
Total assets	$	64,947	$	—	$	—	$	64,947
Liabilities
Convertible debt	$	—		17,084	$	—	$	17,084
Contingent consideration		—		—		580		580
Total liabilities	$	—	$	17,084	$	580	$	17,664

Summary of Cash Equivalents

Cash equivalents consist of the following (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
March 31, 2024	Cost		Gains		Losses		Fair Value
Money market securities	$	64,927	$	—	$	—	$	64,927
Total cash equivalents	$	64,927	$	—	$	—	$	64,927
Money market securities (restricted cash)	$	20	$	—	$	—	$	20
Total restricted cash	$	20	$	—	$	—	$	20

Schedule of Aggregate Fair Value of Principal Amount of Convertible Debt

The aggregate fair value of the principal amount of the convertible debt is a Level 2 fair value measurement.


	March 31, 2024						December 31, 2023
	Principal		Carrying		Fair		Principal		Carrying		Fair
	Amount		Value		Value		Amount		Value		Value
December 2021 Convertible Debt	$	15,000	$	17,141	$	17,084	$	15,000	$	16,662	$	16,652

As of March 31, 2024 and December 31, 2023, the Convertible Term Loan balance, including the Convertible Debt balance, was comprised of the following:


	March 31,			December 31,
	2024			2023
Convertible Term Loan Information
Principal	$	15,000		$	15,000
Transaction Costs		2			(5	)
Accrued paid-in-kind interest		2,622			2,311
Discount on modification of debt		(1,074	)		(1,074	)
Accretion of discount on modification of debt		591			430
		17,141			16,662

Schedule of Changes in Fair Value of Liabilities

The following table presents the changes in fair value of our total Level 3 financial liabilities for the three months ended March 31, 2024:


	Balance at		Change in		Balance at
(in thousands)	December 31, 2023		Fair Value		March 31, 2024
Contingent consideration	$	528	$	52	$	580