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Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2023

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

3.	Fair Value of Financial Instruments

The Company measures certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market.

Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows:

	●	Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

	●	Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

	●	Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.

The following tables present the Company’s financial assets and liabilities that are measured and carried at fair value and indicate the level within the fair value hierarchy of valuation techniques it utilizes to determine such fair value:

		September 30, 2023
		Level 1				Level 2				Level 3				Total
Cash equivalents:
Money market funds^(a)		$	33,213			$	-			$	-			$	33,213
Restricted cash, non-current:
Money market funds^(b)			745				-				-				745
Marketable debt securities:
Corporate bonds^(c)			-				40,266				-				40,266
Total		$	33,958			$	40,266			$	-			$	74,224

		December 31, 2022
		Level 1				Level 2				Level 3				Total
Cash equivalents:
Money market funds^(a)		$	13,284			$	-			$	-			$	13,284
Corporate bonds^(a)			-				2,523				-				2,523
Restricted cash, non-current:
Money market funds^(b)			745				-				-				745
Marketable debt securities:
Corporate bonds^(c)			-				78,129				-				78,129
Total		$	14,029			$	80,652			$	-			$	94,681

(a)

Money market funds and corporate debt securities with original maturities of 90 days or less are included within Cash and cash equivalents in the condensed consolidated balance sheets.

(b)

Restricted Money market funds are included within Restricted Cash, non-current in the condensed consolidated balance sheets.

(c)

Corporate debt securities with original maturities greater than 90 days are included within Marketable securities in the condensed consolidated balance sheets and classified as current or noncurrent based upon whether the maturity of the financial asset is less than or greater than 12 months.

Money market funds are classified as Level 1 within the fair value hierarchy, because they are valued using quoted prices in active markets. Corporate debt securities classified as Level 2 within the fair value hierarchy are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. Prices of these securities are obtained through independent, third-party pricing services and include market quotations that may include both observable and unobservable inputs. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships between investments. There were no transfers of financial instruments among Level 1, Level 2, and Level 3 during the period presented.

Cash equivalents, prepaid expenses and other current assets, accounts payable and accrued expenses at September 30, 2023 and December 31, 2022 are carried at amounts that approximate fair value due to their short-term maturities.

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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