0000950170-23-018927.txt : 20230508 0000950170-23-018927.hdr.sgml : 20230508 20230508172946 ACCESSION NUMBER: 0000950170-23-018927 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 61 CONFORMED PERIOD OF REPORT: 20230331 FILED AS OF DATE: 20230508 DATE AS OF CHANGE: 20230508 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ACADIA PHARMACEUTICALS INC CENTRAL INDEX KEY: 0001070494 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 061376651 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-50768 FILM NUMBER: 23899096 BUSINESS ADDRESS: STREET 1: 3611 VALLEY CENTRE DRIVE STREET 2: SUITE 300 CITY: SAN DIEGO STATE: CA ZIP: 92130 BUSINESS PHONE: 858-558-2871 MAIL ADDRESS: STREET 1: 3611 VALLEY CENTRE DRIVE STREET 2: SUITE 300 CITY: SAN DIEGO STATE: CA ZIP: 92130 10-Q 1 acad-20230331.htm 10-Q 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 000-50768

 

ACADIA PHARMACEUTICALS INC.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Delaware

06-1376651

(State of Incorporation)

(I.R.S. Employer Identification No.)

 

12830 El Camino Real, Suite 400

San Diego, California

92130

(Address of Principal Executive Offices)

(Zip Code)

 

(858) 558-2871

(Registrant’s Telephone Number, Including Area Code)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Common Stock, par value $0.0001 per share

ACAD

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

 

 

 

 

Non-accelerated filer

Smaller reporting company

 

 

 

 

Emerging growth company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

Total shares of common stock outstanding as of the close of business on April 26, 2023:

 

Class

 

Number of Shares Outstanding

Common Stock, $0.0001 par value

 

162,625,379

 

 


 

ACADIA PHARMACEUTICALS INC.

FORM 10-Q

TABLE OF CONTENTS

 

 

 

PAGE NO.

 

 

 

PART I. FINANCIAL INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Financial Statements

 

1

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

1

 

 

 

 

 

 

 

Condensed Consolidated Statements of Operations

 

2

 

 

 

 

 

 

 

Condensed Consolidated Statements of Comprehensive Loss

 

3

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows

 

4

 

 

 

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity

 

5

 

 

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements

 

6

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

17

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

24

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

24

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

26

 

 

 

 

 

Item 1A.

 

Risk Factors

 

26

 

 

 

 

 

Item 6.

 

Exhibits

 

61

 

 

 

SIGNATURES

 

62

 

i


 

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ACADIA PHARMACEUTICALS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

 

 

 

March 31,
2023

 

 

December 31,
2022

 

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

290,895

 

 

$

114,846

 

Investment securities, available-for-sale

 

 

111,978

 

 

 

301,977

 

Accounts receivable, net

 

 

65,915

 

 

 

62,195

 

Interest and other receivables

 

 

4,335

 

 

 

885

 

Inventory

 

 

6,095

 

 

 

6,636

 

Prepaid expenses

 

 

23,632

 

 

 

21,398

 

Total current assets

 

 

502,850

 

 

 

507,937

 

Property and equipment, net

 

 

5,595

 

 

 

6,021

 

Operating lease right-of-use assets

 

 

54,151

 

 

 

55,573

 

Intangible assets, net

 

 

69,583

 

 

 

 

Restricted cash

 

 

5,770

 

 

 

5,770

 

Long-term inventory

 

 

4,924

 

 

 

4,924

 

Other assets

 

 

12,432

 

 

 

7,587

 

Total assets

 

$

655,305

 

 

$

587,812

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

Accounts payable

 

$

17,422

 

 

$

12,746

 

Accrued liabilities

 

 

206,879

 

 

 

112,884

 

Total current liabilities

 

 

224,301

 

 

 

125,630

 

Operating lease liabilities

 

 

51,441

 

 

 

52,695

 

Other long-term liabilities

 

 

5,305

 

 

 

9,074

 

Total liabilities

 

 

281,047

 

 

 

187,399

 

Commitments and contingencies (Note 9)

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 5,000,000 shares authorized at March 31, 2023
   and December 31, 2022;
no shares issued and outstanding at March 31, 2023 and
   December 31, 2022

 

 

 

 

 

 

Common stock, $0.0001 par value; 225,000,000 shares authorized at March 31, 2023
   and December 31, 2022;
162,384,178 shares and 162,064,872 shares issued and
   outstanding at March 31, 2023 and December 31, 2022, respectively

 

 

16

 

 

 

16

 

Additional paid-in capital

 

 

2,787,034

 

 

 

2,770,923

 

Accumulated deficit

 

 

(2,412,572

)

 

 

(2,369,551

)

Accumulated other comprehensive loss

 

 

(220

)

 

 

(975

)

Total stockholders’ equity

 

 

374,258

 

 

 

400,413

 

Total liabilities and stockholders’ equity

 

$

655,305

 

 

$

587,812

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

1


 

ACADIA PHARMACEUTICALS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Revenues

 

 

 

 

 

 

Product sales, net

 

$

118,462

 

 

$

115,468

 

Total revenues

 

 

118,462

 

 

 

115,468

 

Operating expenses

 

 

 

 

 

 

Cost of product sales

 

 

1,667

 

 

 

2,950

 

Research and development

 

 

69,144

 

 

 

128,855

 

Selling, general and administrative

 

 

101,235

 

 

 

96,679

 

Total operating expenses

 

 

172,046

 

 

 

228,484

 

Loss from operations

 

 

(53,584

)

 

 

(113,016

)

Interest income, net

 

 

3,800

 

 

 

105

 

Other income

 

 

4,845

 

 

 

340

 

Loss before income taxes

 

 

(44,939

)

 

 

(112,571

)

Income tax (benefit) expense

 

 

(1,918

)

 

 

485

 

Net loss

 

$

(43,021

)

 

$

(113,056

)

Net loss per common share, basic and diluted

 

$

(0.27

)

 

$

(0.70

)

Weighted average common shares outstanding, basic and diluted

 

 

162,263

 

 

 

161,231

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

2


 

ACADIA PHARMACEUTICALS INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Net loss

 

$

(43,021

)

 

$

(113,056

)

Other comprehensive income (loss):

 

 

 

 

 

 

Unrealized gain (loss) on investment securities

 

 

757

 

 

 

(422

)

Foreign currency translation adjustments

 

 

(2

)

 

 

2

 

Comprehensive loss

 

$

(42,266

)

 

$

(113,476

)

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

3


 

ACADIA PHARMACEUTICALS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Cash flows from operating activities

 

 

 

 

 

 

Net loss

 

$

(43,021

)

 

$

(113,056

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Stock-based compensation

 

 

14,705

 

 

 

14,963

 

Amortization of premiums and accretion of discounts on investment securities

 

 

(2,267

)

 

 

447

 

Gain on strategic investment

 

 

(4,845

)

 

 

(339

)

Loss on sale of investment securities

 

 

505

 

 

 

 

Depreciation

 

 

426

 

 

 

516

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

(3,720

)

 

 

1,653

 

Interest and other receivables

 

 

(3,450

)

 

 

209

 

Inventory

 

 

481

 

 

 

833

 

Prepaid expenses

 

 

(2,234

)

 

 

(1,863

)

Operating lease right-of-use assets

 

 

1,726

 

 

 

1,522

 

Accounts payable

 

 

4,676

 

 

 

3,892

 

Accrued liabilities

 

 

24,510

 

 

 

19,672

 

Operating lease liabilities

 

 

(1,656

)

 

 

(2,117

)

Long-term liabilities

 

 

(3,769

)

 

 

(2,661

)

Net cash used in operating activities

 

 

(17,933

)

 

 

(76,329

)

Cash flows from investing activities

 

 

 

 

 

 

Purchases of investment securities

 

 

(66,892

)

 

 

 

Sale and maturity of investment securities

 

 

259,410

 

 

 

131,345

 

Net cash provided by investing activities

 

 

192,518

 

 

 

131,345

 

Cash flows from financing activities

 

 

 

 

 

 

Proceeds from issuance of common stock, net of issuance costs

 

 

1,466

 

 

 

2,467

 

Net cash provided by financing activities

 

 

1,466

 

 

 

2,467

 

Effect of exchange rate changes on cash

 

 

(2

)

 

 

2

 

Net increase in cash, cash equivalents and restricted cash

 

 

176,049

 

 

 

57,485

 

Cash, cash equivalents and restricted cash

 

 

 

 

 

 

Beginning of period

 

 

120,616

 

 

 

153,205

 

End of period

 

$

296,665

 

 

$

210,690

 

Supplemental disclosure of noncash information:

 

 

 

 

 

 

Accrued milestone and contingent payments in connection with asset acquisition

 

$

69,583

 

 

$

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

4


 

ACADIA PHARMACEUTICALS INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

(Unaudited)

 

 

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Total stockholders’ equity, beginning balances

 

$

400,413

 

 

$

540,894

 

Common stock:

 

 

 

 

 

 

Beginning balance

 

 

16

 

 

 

16

 

Ending balance

 

 

16

 

 

 

16

 

Additional paid-in capital:

 

 

 

 

 

 

Beginning balance

 

 

2,770,923

 

 

 

2,694,646

 

Issuance of common stock from exercise of stock options
   and units

 

 

1,466

 

 

 

2,467

 

Stock-based compensation

 

 

14,645

 

 

 

14,912

 

Ending balance

 

 

2,787,034

 

 

 

2,712,025

 

Accumulated deficit:

 

 

 

 

 

 

Beginning balance

 

 

(2,369,551

)

 

 

(2,153,576

)

Net loss

 

 

(43,021

)

 

 

(113,056

)

Ending balance

 

 

(2,412,572

)

 

 

(2,266,632

)

Other comprehensive (loss) income:

 

 

 

 

 

 

Beginning balance

 

 

(975

)

 

 

(192

)

Other comprehensive income (loss)

 

 

755

 

 

 

(420

)

Ending balance

 

 

(220

)

 

 

(612

)

 

 

 

 

 

 

Total stockholders’ equity, ending balances

 

$

374,258

 

 

$

444,797

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

5


 

ACADIA PHARMACEUTICALS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Organization and Business

Acadia Pharmaceuticals Inc. (the Company), based in San Diego, California, is a biopharmaceutical company focused on the development and commercialization of innovative medicines to address unmet medical needs in central nervous system (CNS) disorders and rare diseases.

In April 2016, the U.S. Food and Drug Administration (FDA) approved the Company’s first drug, NUPLAZID® (pimavanserin), for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis (PDP). NUPLAZID became available for prescription in the United States in May 2016.

In March 2023, the FDA approved the Company’s second drug, DAYBUE™ (trofinetide), for the treatment of Rett syndrome. DAYBUE became available for prescription in the United States in April, 2023.

2. Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company should be read in conjunction with the audited financial statements and notes thereto as of and for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K (Annual Report) filed with the Securities and Exchange Commission (the SEC). The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements reflect all adjustments (consisting of normal recurring adjustments) that are necessary for a fair statement of the financial position, results of operations, cash flows, and stockholders’ equity for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ materially from those estimates.

 

Risk and Uncertainties

The global pandemic resulting from the disease known as COVID-19, caused by a novel strain of coronavirus, SARS-CoV-2, has caused national and global economic and financial market disruptions and has adversely impacted the Company’s business. Since the beginning of the pandemic, the growth of sales of NUPLAZID have been negatively impacted by ongoing conditions related to the pandemic. At this time the Company cannot predict the magnitude of the pandemic or the full impact that it may have on the Company’s financial condition, operations, suppliers, and workforce.

In addition to the ongoing COVID-19 pandemic, global economic and business activities continue to face widespread macroeconomic uncertainties, including labor shortages, inflation and monetary supply shifts, recession risks, recent and potential future disruptions in access to bank deposits or lending commitments due to bank failures, and potential disruptions from the Russia-Ukraine conflict. The Company continues to actively monitor the impact of these macroeconomic factors on its financial condition, liquidity, operations and workforce. The extent of the impact of these factors on the Company’s operational and financial performance, including its ability to execute its business strategies and initiatives in the expected time frame, will depend on future developments, which are uncertain and cannot be predicted; however, any continued or renewed disruption resulting from these factors could negatively impact the Company’s business.

6


 

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated statements of cash flows that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows (in thousands):

 

 

 

March 31, 2023

 

 

March 31, 2022

 

 

 

Beginning of
period

 

 

End of
period

 

 

Beginning of
period

 

 

End of
period

 

Cash and cash equivalents

 

$

114,846

 

 

$

290,895

 

 

$

147,435

 

 

$

204,920

 

Restricted cash

 

 

5,770

 

 

 

5,770

 

 

 

5,770

 

 

 

5,770

 

Total cash, cash equivalents and restricted cash shown in
   the condensed consolidated statements of cash flows

 

$

120,616

 

 

$

296,665

 

 

$

153,205

 

 

$

210,690

 

 

Accounts Receivable

Accounts receivable are recorded net of customer allowances for distribution fees, prompt payment discounts, chargebacks, and credit losses. Allowances for distribution fees, prompt payment discounts and chargebacks are based on contractual terms. The Company estimated the current expected credit losses of its accounts receivable by assessing the risk of loss and available relevant information about collectability, including historical credit losses, existing contractual payment terms, actual payment patterns of its customers, individual customer circumstances, and reasonable and supportable forecast of economic conditions expected to exist throughout the contractual life of the receivable. The Company has not historically experienced significant credit losses. Based on its assessment, as of March 31, 2023 the Company determined that an allowance for credit loss was not required.

License Fees and Royalties

The Company expenses amounts paid to acquire licenses associated with products under development when the ultimate recoverability of the amounts paid is uncertain and the technology has no alternative future use when acquired. Acquisitions of technology licenses are charged to expense or capitalized based upon management’s assessment regarding the ultimate recoverability of the amounts paid and the potential for alternative future use. The Company has determined that technological feasibility for its product candidates is reached when the requisite regulatory approvals are obtained to make the product available for sale.

Intangible Assets

Finite-lived intangible assets are recorded at cost, net of accumulated amortization, and, if applicable, impairment charges. Amortization of finite-lived intangible assets is recorded over the assets’ estimated useful lives on a straight-line basis or based on the pattern in which economic benefits are consumed, if reliably determinable. We review our finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such intangible assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of intangible the assets exceeds the estimated fair value of the intangible assets. No impairment loss was recorded on intangible assets during the three months ended March 31, 2023 and 2022.

3. Net Loss Per Share

Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common stock equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, stock options, employee stock purchase plan rights, restricted stock units, and warrants are considered to be common stock equivalents but are not included in the calculations of diluted net loss per share for the periods presented as their effect would be anti-dilutive. The Company incurred net losses for all periods presented and there were no reconciling items for potentially dilutive securities. More specifically, at March 31, 2023 and 2022, stock options, employee stock purchase plan rights, restricted stock units, and warrants totaling approximately 20,764,000 shares and 17,540,000 shares, respectively, were excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive.

7


 

4. Stock-Based Compensation

The following table summarizes the total stock-based compensation expense included in the Company’s statements of operations for the periods presented (in thousands):

 

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Cost of product sales

 

$

168

 

 

$

323

 

Research and development

 

 

3,972

 

 

 

5,464

 

Selling, general and administrative

 

 

10,565

 

 

 

9,176

 

 

 

$

14,705

 

 

$

14,963

 

The fair value of each employee stock option and each employee stock purchase plan right granted is estimated on the grant date under the fair value method using the Black-Scholes valuation model, which requires the Company to make a number of assumptions including the estimated expected life of the award and related volatility. The fair value of restricted stock units is estimated based on the market price of the Company’s common stock on the date of grant. The estimated fair values of stock options, purchase plan rights, and restricted stock units are then expensed over the requisite service period, which is generally the vesting period. For restricted stock units requiring satisfaction of both market and service conditions, the estimated fair values are generally expensed over the longest of the explicit, implicit and derived service periods. Performance-based stock awards vest upon the achievement of certain pre-defined company-specific performance-based criteria. Expense related to these performance-based stock awards is generally recognized ratably over the expected performance period once the pre-defined performance-based criteria for vesting becomes probable.

5. Balance Sheet Details

Inventory consisted of the following (in thousands):

 

 

 

March 31,
2023

 

 

December 31,
2022

 

Finished goods

 

$

1,594

 

 

$

1,926

 

Work in process

 

 

4,251

 

 

 

4,427

 

Raw material

 

 

5,174

 

 

 

5,207

 

 

 

$

11,019

 

 

$

11,560

 

Reported as:

 

 

 

 

 

 

    Inventory

 

$

6,095

 

 

$

6,636

 

    Long-term inventory

 

 

4,924

 

 

 

4,924

 

    Total

 

$

11,019

 

 

$

11,560

 

Amount reported as long-term inventory consisted of raw materials as of March 31, 2023 and December 31, 2022. The Company has raw materials beyond a one year production plan that help limit the exposures from potential supply interruption. Those raw materials beyond the one year production plan were classified as long-term inventory.

Accrued liabilities consisted of the following (in thousands):

 

 

 

March 31,
2023

 

 

December 31,
2022

 

Accrued milestone and contingent payments

 

$

69,583

 

 

$

 

Accrued sales allowances

 

 

50,137

 

 

 

26,046

 

Accrued research and development services

 

 

33,656

 

 

 

35,048

 

Accrued compensation and benefits

 

 

21,192

 

 

 

28,023

 

Accrued consulting and professional fees

 

 

12,876

 

 

 

11,377

 

Current portion of lease liabilities

 

 

9,173

 

 

 

9,305

 

Other

 

 

10,262

 

 

 

3,085

 

 

 

$

206,879

 

 

$

112,884

 

 

8


 

6. Investments

The carrying value and amortized cost of the Company’s investments, summarized by major security type, consisted of the following (in thousands):

 

 

 

March 31, 2023

 

 

 

Amortized
Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Estimated
Fair
Value

 

Government sponsored enterprise securities

 

$

104,852

 

 

$

27

 

 

$

(231

)

 

$

104,648

 

Municipal bonds

 

 

7,360

 

 

 

 

 

 

(30

)

 

 

7,330

 

 

 

$

112,212

 

 

$

27

 

 

$

(261

)

 

$

111,978

 

 

 

 

December 31, 2022

 

 

 

Amortized
Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Estimated
Fair
Value

 

U.S. Treasury notes

 

$

15,956

 

 

$

 

 

$

(11

)

 

$

15,945

 

Government sponsored enterprise securities

 

 

81,216

 

 

 

16

 

 

 

(291

)

 

 

80,941

 

Corporate debt securities

 

 

20,873

 

 

 

 

 

 

(98

)

 

 

20,775

 

Commercial paper

 

 

184,923

 

 

 

30

 

 

 

(637

)

 

 

184,316

 

 

 

$

302,968

 

 

$

46

 

 

$

(1,037

)

 

$

301,977

 

The Company has classified all of its available-for-sale investment securities as current assets on its condensed consolidated balance sheets based on the highly liquid nature of the investment securities and because these investment securities are considered available for use in current operations. The Company has classified all equity securities as other assets on its condensed consolidated balance sheets.

At March 31, 2023 and December 31, 2022, the Company had 17 and 43 available-for-sale investment securities, respectively, in an unrealized loss position. The following table presents gross unrealized losses and fair value for those available-for-sale investment securities that were in an unrealized loss position as of March 31, 2023 and December 31, 2022, aggregated by investment category and length of time that the individual securities have been in a continuous loss position (in thousands):

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

 

Estimated
Fair Value

 

 

Unrealized
Losses

 

 

Estimated
Fair Value

 

 

Unrealized
Losses

 

 

Estimated
Fair Value

 

 

Unrealized
Losses

 

 

March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government sponsored enterprise securities

 

$

87,812

 

 

$

(231

)

 

$

 

 

$

 

 

$

87,812

 

 

$

(231

)

 

Municipal bonds

 

 

7,330

 

 

 

(30

)

 

 

 

 

 

 

 

 

7,330

 

 

 

(30

)

 

Total

 

$

95,142

 

 

$

(261

)

 

$

 

 

$

 

 

$

95,142

 

 

$

(261

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

 

Estimated
Fair Value

 

 

Unrealized
Losses

 

 

Estimated
Fair Value

 

 

Unrealized
Losses

 

 

Estimated
Fair Value

 

 

Unrealized
Losses

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury notes

 

$

15,945

 

 

$

(11

)

 

$

 

 

$