Fair Value Measurements

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

7. Fair Value Measurements

The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair-value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1: Observable inputs such as quoted prices in active markets;

Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The carrying amounts of the Company’s interest receivable, included in prepaid expenses and other current assets, accounts payable and accrued liabilities are generally considered to be representative of their fair value because of their short-term nature. The Company’s investments, which may include money market funds and available-for-sale investments consisting of U.S. treasury securities, certificates of deposit and high-quality, marketable debt instruments of corporations and government sponsored enterprises, are measured at fair value in accordance with the fair value hierarchy.

Following are the major categories of assets measured at fair value on a recurring basis (in thousands):

	Fair Value Measurements
	Fair Value		Level 1		Level 2		Level 3		Total
June 30, 2023
Money market funds (1)	$	103,683	$	103,683	$	—	$	—	$	103,683
U.S. treasury securities		166,118		166,118		—		—		166,118
U.S. agency bonds		2,479		—		2,479		—		2,479
Certificates of deposit		1,454		1,454		—		—		1,454
Total	$	273,734	$	271,255	$	2,479	$	—	$	273,734
December 31, 2022
Money market funds (1)	$	66,840	$	66,840	$	—	$	—	$	66,840
U.S. treasury securities		154,018		154,018		—		—		154,018
U.S. agency bonds		4,965		—		4,965		—		4,965
Certificates of deposit		2,400		2,400		—		—		2,400
Total	$	228,223	$	223,258	$	4,965	$	—	$	228,223

(1) Included in cash and cash equivalents in accompanying balance sheets.

No transfers between levels occurred during either of the reporting periods presented.