Fair Value Measurements

3 Months Ended

Mar. 31, 2024

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 assets, 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 tables provide 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 March 31, 2024 and December 31, 2023. There were no transfers between Level 1 and Level 2 during the periods presented.


	Assets at Fair Value as of March 31, 2024
	Level 1		Level 2		Level 3		Total
	(in thousands)

Cash and cash equivalents	$	96,494	$	—	$	—	$	96,494
Short-term investments	245,098		14,006		—		259,104
Total cash and cash equivalents and investments	$	341,592	$	14,006	$	—	$	355,598


	Assets at Fair Value as of December 31, 2023
	Level 1		Level 2		Level 3		Total
	(in thousands)

Cash and cash equivalents	$	22,465	$	—	$	—	$	22,465
Short-term investments	141,596		5,965		—		147,561
Total cash and cash equivalents and investments	$	164,061	$	5,965	$	—	$	170,026

The carrying amount of cash and cash equivalents, prepaid expenses and other assets, accounts payable and accrued expenses are generally considered to be representative of their respective fair values because of the short-term nature of those instruments. 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.