Fair Value Measurements

9 Months Ended

Sep. 30, 2023

The Company uses various inputs in determining the fair value of its investments and measures these assets on a recurring basis. Assets and liabilities recorded at fair value in the condensed consolidated balance sheets are categorized by the level of objectivity associated with the inputs used to measure their fair value. The following levels are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities:

•Level 1 - quoted prices in active markets for identical investments, which include U.S. treasury securities

•Level 2 - other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.), which includes corporate debt securities

•Level 3 - significant unobservable inputs

The inputs or methodology used for valuing securities are not necessarily an indication of the credit risk associated with investing in those securities. The following table provides the fair value measurements of applicable Company assets that are measured at fair value on a recurring basis according to the fair value levels defined above as of September 30, 2023 and December 31, 2022. There were no transfers between Level 1 and Level 2 during the periods presented.


	Fair Value as of September 30, 2023
	Level 1		Level 2		Level 3		Total
	(in thousands)

Cash and cash equivalents	$	21,116	$	—	$	—	$	21,116
Short-term investments	191,439		5,872		—		197,311
Total cash and cash equivalents and investments	$	212,555	$	5,872	$	—	$	218,427


	Fair Value as of December 31, 2022
	Level 1		Level 2		Level 3		Total
	(in thousands)

Cash and cash equivalents	$	46,345	$	—	$	—	$	46,345
Short-term investments	73,680		18,332		—		92,012
Total cash and cash equivalents and investments	$	120,025	$	18,332	$	—	$	138,357

The fair value of the Oxford Term Loans (see Note 5) is determined under Level 2 in the fair value hierarchy and approximates carrying value as the loans bear interest at a rate that approximates prevailing market rates for instruments with similar characteristics.