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Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2023

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

3. Fair Value of Financial Instruments

The tables below present information about the Company’s financial instruments that are measured at fair value on a recurring basis as of December 31, 2023 and 2022 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value, as described under Note 2, Summary of Significant Accounting Policies.

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 the valuation techniques it utilizes to determine such fair value:

		December 31, 2023
		Level 1				Level 2				Level 3				Total
Cash equivalents:
Money market funds^(a)		$	39,031			$	-			$	-			$	39,031
Restricted cash, non-current:
Money market funds^(b)			745				-				-				745
Marketable debt securities:
Corporate bonds^(c)			-				23,495				-				23,495
Agency bonds^(c)			-				2,499				-				2,499
Total		$	39,776			$	25,994			$	-			$	65,770

		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 bonds with original maturities of 90 days or less are included within Cash and cash equivalents in the consolidated balance sheets.

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

(c)	Bonds with original maturities greater than 90 days are included within Marketable debt securities in the 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 and agency bonds 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.

Non-Recurring Fair Value Measurements

During 2022, the Company recorded a goodwill impairment loss of $29.5 million, refer to Note 2 for additional details on the impairment of goodwill. In 2022, the fair value of the Company’s reporting unit was determined using an income approach based on discounted cash flows, or DCF. Determining fair value using a DCF analysis requires the exercise of significant judgment with respect to several assumptions and estimates, including the amount and timing of expected future cash flows and appropriate discount rate to be applied. The expected cash flows used in the DCF analysis were based on the Company’s most recent internal long-range forecast and budget and, for years beyond the budget, the Company’s estimates, which were based, in part, on industry benchmarks and forecasted growth rates. The discount rate used in the DCF analysis was intended to reflect the risks inherent in the expected future cash flows of the respective programs within the Company’s portfolio. The inputs to the DCF model were Level 3 valuation inputs.

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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