Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2021

The Company applies the provisions of ASC Topic 820, Fair Value Measurements (“ASC 820”) for its financial assets and liabilities that are re-measured and reported at fair value each reporting period and the non-financial assets and liabilities that are re-measured and reported at fair value on a non-recurring basis. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which it would transact and consider assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. Financial assets and liabilities are categorized within the valuation hierarchy based upon the lowest level of input that is significant to the measurement of fair value. The three levels of the hierarchy are defined as follows:


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

Level 2			Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3			Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

In accordance with the fair value hierarchy, the following table shows the fair value as of December 31, 2021 and December 31, 2020 of those financial assets and liabilities that are measured at fair value on a recurring basis, according to the valuation techniques the Company used to determine their fair value. No financial assets or liabilities are measured at fair value on a nonrecurring basis at December 31, 2021 and December 31, 2020.


	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Fair Value
(in thousands)
As of December 31, 2021
Cash equivalents:
Money market funds	$	33,944	$	—	$	—	$	33,944



Short-term investments:
Corporate commercial paper, bonds and notes	—		75,870		—		75,870
Long-term investments:
Corporate commercial paper, bonds and notes	—		23,964		—		23,964
Total assets at fair value	$	33,944	$	99,834	$	—	$	133,778


	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Fair Value
(in thousands)
As of December 31, 2020
Cash equivalents:
Money market funds	$	115,278	$	—	$	—	$	115,278



Short-term investments:
Corporate commercial paper, bonds and notes	—		38,884		—		38,884
Long-term investments:
Corporate commercial paper, bonds and notes	—		14,564		—		14,564
Total assets at fair value	$	115,278	$	53,448	$	—	$	168,726

Accrued interest receivable on the Company's available-for-sale debt securities totaled $0.4 million and $0.3 million as of December 31, 2021 and 2020, respectively. No accrued interest receivable was written off for the years ended December 31, 2021 and 2020.