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Note 4 - Investments and Fair-value Measurements
3 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

Note 4Investments and Fair-Value Measurements

 

All of our investments are held in our name and are classified as short-term and held-to-maturity on the accompanying condensed consolidated balance sheets. Interest income is included as a component of other income on our condensed consolidated statement of operations and comprehensive loss. Interest and other income for the three months ended  March 31, 2024 and March 31, 2023 consists primarily of interest earned of $2.8 million and $3.4 million, respectively. 

 

The following tables summarize our investments:

 

 

March 31, 2024

 

         

Gross Unrealized

         
   

Amortized Cost

   

Gains/(Losses)

   

Estimated Fair Value

 

 

(In thousands)

 

 

   

   

 

U.S. government securities classified as short-term investments

  $ 180,971     $ (20 )   $ 180,951  

Money-market funds classified as short-term investments

    47,532             47,532  

Total short-term investments

    228,503       (20 )     228,483  

Certificate of deposit classified as non-current restricted investments

    1,054             1,054  

Total investments

  $ 229,557     $ (20 )   $ 229,537  

 

 

December 31, 2023

 

         

Gross Unrealized

         
   

Amortized Cost

   

Gains/(Losses)

   

Estimated Fair Value

 

 

(In thousands)

 

 

   

   

 

U.S. government securities classified as short-term investments

  $ 102,100     $ 19     $ 102,119  

Money-market funds classified as short-term investments

    62,643             62,643  

Total short-term investments

    164,743       19       164,762  

Certificate of deposit classified as non-current restricted investments

    1,054             1,054  

Total investments

  $ 165,797     $ 19     $ 165,816  

 

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting standard establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required:

 

Level 1—Observable inputs for identical assets or liabilities, such as quoted prices in active markets;

 

Level 2—Inputs other than quoted prices in active markets that are either directly or indirectly observable; and

 

Level 3—Unobservable inputs in which little or no market data exists, therefore they are developed using estimates and assumptions developed by us, which reflect those that a market participant would use.

 

Our fair value hierarchy for our financial assets and liabilities are as follows:

 

 

March 31, 2024

 

 

Level 1

   

Level 2

   

Level 3

   

Total

 

 

(In thousands)

 

Assets:

 

   

   

   

 

U.S. government securities classified as short-term investments

  $     $ 180,951     $     $ 180,951  

Money-market funds classified as short-term investments

    47,532                   47,532  

Total short-term investments

    47,532       180,951             228,483  

Certificate of deposit classified as non-current restricted investments

    1,054                   1,054  

Total investments

  $ 48,586     $ 180,951     $     $ 229,537  

 

 

December 31, 2023

 

 

Level 1

   

Level 2

   

Level 3

   

Total

 

 

(In thousands)

 

Assets:

 

   

   

   

 

U.S. government securities classified as short-term investments

  $     $ 102,119     $     $ 102,119  

Money-market funds classified as short-term investments

    62,643                   62,643  

Total short-term investments

    62,643       102,119             164,762  

Certificate of deposit classified as non-current restricted investments

    1,054                   1,054  

Total investments

  $ 63,697     $ 102,119     $     $ 165,816  

 

Cash held in demand deposit accounts of $1.8 million and $7.1 million is excluded from our fair-value hierarchy disclosure as of  March 31, 2024 and December 31, 2023, respectively. The carrying amounts reported in the accompanying condensed consolidated balance sheets for receivables, accounts payable and accrued liabilities, and other current monetary assets and liabilities approximate fair value.

 

See “Note 6 — Convertible Senior Notes” and “Note 8 — OMIDRIA Royalty Obligation” for the carrying amount and estimated fair value of our outstanding convertible senior notes and the OMIDRIA royalty obligation.