Investments

9 Months Ended

Sep. 30, 2023

Investments

Investments

Note 4 – Investments

The Company invests in available-for-sale securities consisting of money market funds, commercial paper, U.S. government securities, U.S. agency bonds and corporate debt securities. Available-for-sale securities are classified as either cash and cash equivalents or short-term investments in the condensed consolidated balance sheets.

The following tables summarize, by major types of cash equivalents, and investments that are measured at fair value on a recurring basis (in thousands):

	As of September 30, 2023
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Money market funds	$	8,669	$	—	$	—	$	8,669
Commercial paper		22,979		—		(11)		22,968
U.S. government securities		18,588		1		(11)		18,578
U.S. agency bonds		26,611		1		(44)		26,568
Cash equivalents and short-term investments	$	76,847	$	2	$	(66)	$	76,783

	As of December 31, 2022
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Money market funds	$	8,528	$	—	$	—	$	8,528
Commercial paper		83,479		11		(67)		83,423
U.S. government securities		10,910		—		(73)		10,837
U.S. agency bonds		22,175		4		(36)		22,143
Corporate debt securities		1,002		—		(5)		997
Cash equivalents and short-term investments	$	126,094	$	15	$	(181)	$	125,928

The contractual maturities of the Company’s AFS securities were as follows (in thousands):

	As of September 30, 2023		As of December 31, 2022
Due within one year	$	37,354	$	63,595
Due within one to two years		2,654		4,904
Total	$	40,008	$	68,499

The AFS investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current condensed consolidated balance sheet date, which reflects management’s intention to use the proceeds from sales of these securities to fund the Company’s operations, as necessary. There were no realized gains or losses due to investment sales for the three and nine months ended September 30, 2023 and 2022. As of September 30, 2023, $44.9 million of the Company’s marketable securities were in gross unrealized loss positions, of which none had been in such position for greater than 12 months and $22.5 million will mature within three months of September 30, 2023.

The Company does not intend to sell its AFS investments before maturity, and it is unlikely that the Company will be required to sell such investments before recovery of their amortized cost basis. Based on the Company’s review of these AFS securities, the unrealized losses as of September 30, 2023 were primarily due to changes in interest rates and not due to increased credit risks associated with specific securities. The Company has no allowance for credit losses as of September 30, 2023 and December 31, 2022. Unrealized gains and losses that are not credit-related are included in accumulated other comprehensive loss.

Accrued interest receivables on AFS securities were $0.2 million and $0.1 million as of September 30, 2023 and December 31, 2022, respectively. The Company has not written off any accrued interest receivables for the three and nine months ended September 30, 2023 and 2022.