Fair Value Measurements

9 Months Ended

Oct. 31, 2021

Note 3: Fair Value Measurements

The Company records its financial assets and liabilities at fair value. The Company estimates and categorizes fair value by applying the following hierarchy:

Level 1:

Quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2:

Observable prices based on inputs not quoted in active markets, but are corroborated by market data.

Level 3:

Unobservable inputs that are supported by little or no market activity.

Financial assets measured at fair value on a recurring basis by level were as follows (in thousands):

	Balance as of October 31, 2021
	Level 1		Level 2		Total
Cash and cash equivalents:
Money market funds	$	2,314	$	—	$	2,314
Total cash equivalents	$	2,314	$	—	$	2,314
Cash						17,126
Total cash and cash equivalents					$	19,440

Short-term investments:
U.S. treasury securities	$	6,798	$	—	$	6,798
Commercial paper		—		4,799		4,799
Total short-term investments	$	6,798	$	4,799	$	11,597

	Balance as of January 31, 2021
	Level 1		Level 2		Total
Cash and cash equivalents:
Money market funds	$	1,657	$	—	$	1,657
U.S. agency securities		—		1,000		1,000
U.S. treasury securities		250		—		250
Total cash equivalents	$	1,907	$	1,000	$	2,907
Cash						14,391
Total cash and cash equivalents					$	17,298

Short-term investments:
U.S. treasury securities	$	9,782	$	—	$	9,782
Corporate debt securities		—		929		929
Asset-backed securities		—		302		302
Total short-term investments	$	9,782	$	1,231	$	11,013

The Company classifies its cash equivalents and short-term investments within Level 1 or Level 2 because it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. The Company has no Level 3 assets or liabilities. For the periods presented, the amortized cost of cash equivalents and marketable securities approximated their fair value and there were no material realized or unrealized gains or losses, either individually or in the aggregate.

Contractual maturities of short-term investments were as follows (in thousands):

	As of
	October 31, 2021		January 31, 2021
Due in one year or less	$	9,604	$	11,013
Due after one year to two years		1,993		—
Total	$	11,597	$	11,013

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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