Sutro Biopharma, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements and Short-Term Investments (Tables)

Fair Value Measurements and Short-Term Investments (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following table sets forth the fair value of the Company’s financial assets and liabilities measured on a recurring basis by level within the fair value hierarchy:

	December 31, 2018
	Total		Level 1		Level 2		Level 3
	(in thousands)
Assets:
Money market funds	$	116,202	$	116,202	$	-	$	-
Commercial paper		26,625		-		26,625		-
Corporate debt securities		11,774		-		11,774		-
Asset-backed securities		16,899		-		16,899		-
U.S. government agency securities		23,896		-		23,896		-
Total	$	195,396	$	116,202	$	79,194	$	-

	December 31, 2017
	Total		Level 1		Level 2		Level 3
	(in thousands)
Assets:
Money market funds	$	6,578	$	6,578	$	-	$	-
Commercial paper		7,689		-		7,689		-
Corporate debt securities		800		-		800		-
U.S. government agency securities		3,893		-		3,893		-
Total	$	18,960	$	6,578	$	12,382		-
Liabilities:
Redeemable convertible preferred stock warrant liability	$	1,708	$	-	$	-	$	1,708
Total	$	1,708	$	-	$	-	$	1,708

Summary of Changes in Estimated Fair Value of Redeemable Convertible Preferred Stock Warrant Liability

Upon closing of the IPO on October 1, 2018, a majority of the outstanding redeemable convertible preferred stock warrants either expired or were converted into common stock warrants, which resulted in the reclassification of the redeemable convertible preferred stock warrant liability to other income and additional paid-in-capital. The following table sets forth a summary of the changes in the estimated fair value of the Company’s redeemable convertible preferred stock warrant liability:

	Redeemable Convertible Preferred Stock Warrant Liability
	(in thousands)
Balance as of December 31, 2016	$	1,193
Estimated fair value of warrants issued		329
Changes in estimated fair value of warrant liability included in other income (expense), net		186
Balance as of December 31, 2017		1,708
Change in estimated fair value of warrant liability included in other income (expense), net, immediately prior to conversion of redeemable convertible preferred stock warrants to common stock warrants.		(841	)
Reclassification of redeemable convertible preferred stock warrant liability to other income upon expiration		(133	)
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in-capital due to conversion to common stock warrants upon completion of IPO		(734	)
Balance as of December 31, 2018	$	-