Marketable Debt Securities

9 Months Ended

Sep. 30, 2023

Marketable Debt Securities [Abstract]

Marketable Debt Securities

4. Marketable Debt Securities

Marketable debt securities, all of which were classified as available-for-sale, consist of the following:

	September 30, 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses(a)			Estimated Fair Value
Corporate bonds - presented in marketable debt securities	$	40,431	$	-	$	(165	)	$	40,266
Total	$	40,431	$	-	$	(165	)	$	40,266

(a) The unrealized loss of $165 is comprised of bonds with losses sustained for greater than 12 months of $77 and of bonds with losses sustained for less than 12 months of $88.

	December 31, 2022
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
Corporate bonds - presented in marketable debt securities	$	60,790	$	-	$	(547	)	$	60,243
Corporate bonds - presented in marketable debt securities, non-current		18,027		-		(141	)		17,886
Total	$	78,817	$	-	$	(688	)	$	78,129

The Company has recorded the securities at fair value in its condensed consolidated balance sheets and unrealized gains and losses are reported as a component of accumulated other comprehensive income (loss). The amount of realized gains and losses reclassified into earnings are based on the specific identification of the securities sold or securities that reached maturity date. The amount of realized gains and losses reclassified into earnings have not been material to the Company’s condensed consolidated statements of operations and comprehensive loss.

At the time of purchase, the Company determines the appropriate classification of investments based upon its intent with regard to such investments. The Company classifies investments in marketable debt securities with remaining maturities when purchased of greater than three months as available-for-sale. Investments with a remaining maturity date greater than one year are classified as non-current. The contractual maturities of all securities held at September 30, 2023 was 7 months or less. There were no sales of securities in the periods presented.

The Company periodically evaluates the need for an allowance for credit losses. This evaluation includes consideration of several qualitative and quantitative factors, including whether it plans to sell the security, whether it is more likely than not it will be required to sell any marketable debt securities before recovery of its amortized cost basis, and if the entity has the ability and intent to hold the security to maturity, and the portion of any unrealized loss that is the result of a credit loss. Factors considered in making these evaluations include quoted market prices, recent financial results, operating trends, and implied values from any recent transactions or offers of investee securities, credit quality of debt instrument issuers, expected cash flows from securities, other publicly available information that may affect the value of the marketable debt security, duration and severity of decline in value and the Company’s strategy and intentions for holding the marketable debt security.

Securities with an amortized cost basis in excess of estimated fair value are assessed to determine what amount of the excess, if any, is caused by expected credit losses. For the period ended September 30, 2023, it was determined that none of the unrealized loss is related to expected credit losses as the Company has the ability and intent to hold all marketable securities that have been in a continuous loss position until maturity or recovery. Further, the entire portfolio is held with investment grade high credit quality institutions. The Company intends to continue investing only in such securities. Expected credit losses, if they existed, would be recognized in other income (expense), net within the Company’s condensed consolidated statements of operations and comprehensive loss. The remaining unrealized losses, not related to credit losses, net of taxes, are included in accumulated other comprehensive loss in stockholders’ equity within the Company’s condensed consolidated balance sheets.

Investment Income

Investment income consists of the following:

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2023		2022			2023		2022
Interest income	$	710	$	557		$	2,025	$	1,598
Dividend income		2		-			6		-
Accretion of discount (amortization of premium), net		128		(274	)		342		(1,030	)
Total interest and investment income	$	840	$	283		$	2,373	$	568