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Fair Value Measurements
9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements

3. Fair Value Measurements

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:

 

Level 1: Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.

 

Level 2: Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

 

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values (in thousands):

 

 

 

September 30, 2021

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

8,133

 

 

 

 

 

 

 

 

$

8,133

 

Total cash equivalents

 

 

8,133

 

 

 

 

 

 

 

 

 

8,133

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

 

 

 

1,123

 

 

 

 

 

 

1,123

 

Commercial paper

 

 

 

 

 

56,478

 

 

 

 

 

 

56,478

 

U.S. Treasury notes

 

 

 

 

 

3,501

 

 

 

 

 

 

3,501

 

Total short-term investments

 

 

 

 

 

61,102

 

 

 

 

 

 

61,102

 

Total assets measured at fair value

 

$

8,133

 

 

$

61,102

 

 

$

 

 

$

69,235

 

 

 

 

 

December 31, 2020

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

15,677

 

 

$

 

 

$

 

 

$

15,677

 

Corporate debt securities

 

 

 

 

 

2,500

 

 

 

 

 

 

2,500

 

Commercial paper

 

 

 

 

 

13,499

 

 

 

 

 

 

13,499

 

Total cash equivalents

 

 

15,677

 

 

 

15,999

 

 

 

 

 

 

31,676

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

 

 

 

11,588

 

 

 

 

 

 

11,588

 

Commercial paper

 

 

 

 

 

50,027

 

 

 

 

 

 

50,027

 

Total short-term investments

 

 

 

 

 

61,615

 

 

 

 

 

 

61,615

 

Total assets measured at fair value

 

$

15,677

 

 

$

77,614

 

 

$

 

 

$

93,291

 

 

The following tables present information as to cost, unrealized gains and losses and fair value determination of the Company’s financial assets measured at fair value on a recurring basis (in thousands):

 

 

 

September 30, 2021

 

 

 

Amortized

Cost

 

 

Unrealized

Gains

 

 

Unrealized

Losses

 

 

Aggregate

Fair Value

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

8,133

 

 

$

 

 

$

 

 

$

8,133

 

Total cash equivalents

 

 

8,133

 

 

 

 

 

 

 

 

 

8,133

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

1,123

 

 

 

 

 

 

 

 

 

1,123

 

Commercial paper

 

 

56,472

 

 

 

6

 

 

 

 

 

 

56,478

 

U.S. Treasury notes

 

 

3,501

 

 

 

 

 

 

 

 

 

3,501

 

Total short-term investments

 

 

61,096

 

 

 

6

 

 

 

 

 

 

61,102

 

Total assets measured at fair value

 

$

69,229

 

 

$

6

 

 

$

 

 

$

69,235

 

 

 

 

December 31, 2020

 

 

 

Amortized

Cost

 

 

Unrealized

Gains

 

 

Unrealized

Losses

 

 

Aggregate

Fair Value

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

15,677

 

 

$

 

 

$

 

 

$

15,677

 

Corporate debt securities

 

 

2,502

 

 

 

 

 

 

(2

)

 

 

2,500

 

Commercial paper

 

 

13,498

 

 

 

1

 

 

 

 

 

 

13,499

 

Total cash equivalents

 

 

31,677

 

 

 

1

 

 

 

(2

)

 

 

31,676

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

11,588

 

 

 

1

 

 

 

(1

)

 

 

11,588

 

Commercial paper

 

 

50,030

 

 

 

2

 

 

 

(5

)

 

 

50,027

 

Total short-term investments

 

 

61,618

 

 

 

3

 

 

 

(6

)

 

 

61,615

 

Total assets measured at fair value

 

$

93,295

 

 

$

4

 

 

$

(8

)

 

$

93,291

 

 

Money market funds are highly liquid investments which are actively traded. The pricing information on the Company’s money market funds are based on quoted prices in active markets for identical securities. This approach results in the classification of these securities as Level 1 of the fair value hierarchy.

The fair value of investments is determined from market pricing and other observable market inputs for similar securities obtained from various third-party data providers. The pricing services utilize industry-standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities; issuer credit spreads; benchmark securities; prepayment/default projections based on historical data; and other observable inputs. This approach results in the classification of these securities as Level 2 of the fair value hierarchy.

As of September 30, 2021, the contractual maturities of all available-for-sale investments were less than 12 months. The Company periodically reviews the available-for-sale investments for other-than-temporary impairment loss. All investments with unrealized losses have been in a loss position for less than 12 months. As a result, the Company did not recognize any other-than-temporary impairment losses as of September 30, 2021 and December 31, 2020.

There were no transfers between Levels 1, 2 or 3 for the periods presented.