Fair Value of Financial Assets and Liabilities

6 Months Ended

Jun. 30, 2022

Fair Value of Financial Assets and Liabilities

Fair Value of Financial Assets and Liabilities

3.           Fair Value of Financial Assets and Liabilities

Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

● Level 1—Quoted prices in active markets for identical assets or liabilities.

● Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

● Level 3—Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The following tables present information about the Company’s financial instruments measured at fair value on a recurring basis and indicate the level of the fair value hierarchy used to determine such fair values:

	Fair Value Measurements
	as of June 30, 2022 Using:
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents — money market funds	$	33,238	$	—	$	—	$	33,238
Cash equivalents — U.S. Treasury notes		—		6,997		—		6,997
Short-term investments — U.S. Treasury notes		—		43,901		—		43,901
	$	33,238	$	50,898	$	—	$	84,136

	Fair Value Measurements
	as of December 31, 2021 Using:
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents — money market funds	$	94,324	$	—	$	—	$	94,324
Short-term investments — U.S. Treasury notes		—		59,731		—		59,731
	$	94,324	$	59,731	$	—	$	154,055

During the six months ended June 30, 2022 and the year ended December 31, 2021 there were no transfers between Level 1, Level 2 and Level 3. The money market funds were valued using quoted prices in active markets, which represent a Level 1 measurement in the fair value hierarchy. The Company’s cash equivalents and short-term investments as of June 30, 2022 and December 31, 2021 included U.S. Treasury notes, which are not traded on a daily basis and, therefore, represent a Level 2 measurement in the fair value hierarchy at each period end.

			Gross		Gross
	Amortized		Unrealized		Unrealized		Credit		Fair
	Cost		Gains		Losses		Losses		Value
June 30, 2022
Cash Equivalents - U.S. Treasury notes	$	6,998	$	—	$	(1)	$	—	$	6,997
Short-term investments — U.S. Treasury notes		43,939		—		(38)		—		43,901
	$	50,937	$	—	$	(39)	$	—	$	50,898

			Gross		Gross
	Amortized		Unrealized		Unrealized		Credit		Fair
	Cost		Gains		Losses		Losses		Value
December 31, 2021
Short-term investments — U.S. Treasury notes	$	59,745	$	1	$	(15)	$	—	$	59,731
	$	59,745	$	1	$	(15)	$	—	$	59,731

As of June 30, 2022, the Company held 14 securities that were in an unrealized loss position. The aggregate fair value of securities held by the Company in an unrealized loss position was $43,901 at June 30, 2022. As of December 31, 2021, the Company held 11 securities that were in an unrealized loss position. The aggregate fair value of securities held by the Company in an unrealized loss position was $49,739 at December 31, 2021. As of June 30, 2022 and December 31, 2021, these securities were held by the Company in an unrealized loss position for less than 12 months. The Company determined that there was no material change in the credit risk of these securities. As a result, the Company determined it did not hold any investments with an other-than-temporary impairment as of June 30, 2022 and December 31, 2021.