Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2023

(4) FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table presents the Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2023 and 2022 (in thousands):


	December 31, 2023
	Fair Value Hierarchy Level	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Cash equivalents
Money market funds	Level 1	$	15,591	$	—	$	—		$	15,591
Corporate debt securities	Level 2		4,489		1		—			4,490
Short-term investments
U.S. Treasury securities	Level 1		74,790		80		(20	)		74,850
U.S. government agency securities	Level 2		28,215		—		(38	)		28,177
Corporate debt securities	Level 2		21,881		24		(3	)		21,902
Commercial paper	Level 2		34,967		22		(9	)		34,980
Asset-backed securities	Level 2		423		—		(2	)		421
Long-term investments
U.S. Treasury securities	Level 1		14,737		75		—			14,812
U.S. government agency securities	Level 2		3,009		31		—			3,040
Corporate debt securities	Level 2		17,464		95		—			17,559
Total		$	215,566	$	328	$	(72	)	$	215,822


	December 31, 2022
	Fair Value Hierarchy Level	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Cash equivalents
Money market funds	Level 1	$	36,690	$	—	$	—		$	36,690
U.S. government agency securities	Level 2		3,484		—		—			3,484
Short-term investments
U.S. Treasury securities	Level 1		73,058		3		(438	)		72,623
U.S. government agency securities	Level 2		16,227		36		—			16,263
Corporate debt securities	Level 2		56,318		—		(367	)		55,951
Commercial paper	Level 2		62,087		—		—			62,087
Asset-backed securities	Level 2		10,512		—		(51	)		10,461
Long-term investments
U.S. Treasury securities	Level 1		5,242		2		—			5,244
U.S. government agency securities	Level 2		9,760		—		(15	)		9,745
Asset-backed securities	Level 2		1,725		—		(15	)		1,710
Total		$	275,103	$	41	$	(886	)	$	274,258

The Company did not have any outstanding financial liabilities to be re-measured on a recurring basis as of December 31, 2023 and 2022.

The fair value of cash equivalents and available-for-sale investments by classification included in the consolidated balance sheets was as follows as of December 31, 2023 and 2022 (in thousands):


	December 31,		December 31,
	2023		2022
Cash and cash equivalents	$	20,081	$	40,174
Short-term investments		160,330		217,385
Long-term investments		35,411		16,699
Total	$	215,822	$	274,258

Cash and cash equivalents in the above table excludes bank account cash of $2.3 million and $8.6 million as of December 31, 2023 and 2022, respectively.

The fair value of cash equivalents and available-for-sale investments by contractual maturity was as follows as of December 31, 2023 and 2022 (in thousands):


	December 31,		December 31,
	2023		2022
Maturing in one year or less	$	180,411	$	257,559
Maturing after one year through five years		35,411		16,699
Total	$	215,822	$	274,258

The primary objective of the Company’s investment portfolio is to maintain safety of principal, prudent levels of liquidity and acceptable levels of risk. The Company’s investment policy limits investments to certain types of instruments issued by institutions with investment-grade credit ratings, and it places restrictions on maturities and concentration by asset class and issuer.

There were no transfers of assets or liabilities between the fair value measurement levels during the years ended December 31, 2023 and 2022 and there were no financial instruments classified as Level 3 as of December 31, 2023 and 2022.

As of December 31, 2023 and 2022, accrued interest receivable related to the Company’s investments of $1.0 million and $1.0 million, respectively, was included in prepaid expenses and other current assets as well as other assets on the consolidated balance sheets.

As of December 31, 2023, the unrealized losses for available-for-sale investments were non-credit related and the Company does not intend to sell the investments that were in an unrealized loss position, nor will it be required to sell those investments before recovery of their amortized costs basis, which may be maturity. As of December 31, 2023 and 2022, no allowance for credit losses for the Company’s investments was recorded. As of December 31, 2023 and 2022, securities with a fair value of $5.9 million and zero, respectively, were in a continuous net unrealized loss position for more than 12 months. As of December 31, 2023 and 2022, the Company has not recognized any impairment losses on available-for-sale investments.

- Definition

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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