Fair Value Measurements

9 Months Ended

Sep. 30, 2020

Fair Value Measurements

Fair Value Measurements

Note 3 – Fair Value Measurements

The following table represents the Company's fair value hierarchy for its financial assets and liabilities measured at fair value (in thousands):

	Fair Value at September 30, 2020						Fair Value at December 31, 2019
Assets	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Money market funds(1)	$	79,950	$	―	$	—	$	42,960	$	—	$	—
Government-backed securities(2)		―		43,250		―		―		20,000		―
Treasury securities(3)		—		65,093		—		—		—		—
Corporate debt securities(4)		―		148,583		―		―		—		―
Agency securities	$	―		40,651		—		—		—		—
Total cash equivalents and marketable securities	$	79,950	$	297,577	$	—	$	42,960	$	20,000	$	—
Liabilities
Convertible notes payable	$	―	$	389,217	$	—	$	—	$	125,811	$	—

(1) Classified as cash and cash equivalents as of September 30, 2020 and December 31, 2019, respectively, on the consolidated balance sheets.

(2) Includes $43,250 and $20,000 classified as cash and cash equivalents as of September 30, 2020 and December 31, 2019, respectively, on the consolidated balance sheets.

(3) Includes $24,998 classified as cash and cash equivalents as of September 30, 2020 on the consolidated balance sheets.

(4) Includes $59,468 classified as cash and cash equivalents as of September 30, 2020 on the consolidated balance sheets.

Fixed-income investments categorized as Level 2 are valued at the custodian bank by a third-party pricing vendor's valuation models that use verifiable observable market data, e.g., interest rates and yield curves observable at

commonly quoted intervals and credit spreads, bids provided by brokers or dealers or quoted prices of securities with similar characteristics. Pricing of the Company's Notes (see Note 8) has been estimated using other observable inputs, including the price of the Company's common stock, implied volatility, interest rates and credit spreads among others.

During the nine months ended September 30, 2020 and 2019, the Company did not have any transfers between levels.

The amount recorded in the Company's unaudited consolidated balance sheets for accounts payable and accrued expenses approximates its fair value due to its short-term nature.