Fair Value Measurements

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 6 – Fair Value Measurements

The table and disclosures below (in thousands) present information about the Company’s assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value.

Money market funds are liquid investments and are actively traded. The pricing information on these investment instruments is readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy. U.S. Government securities are measured at fair value using Level 2 inputs. The Company reviews trading activity and pricing for these investments as of each measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities obtained from various third-party data providers. These inputs represent quoted prices for similar assets in active markets or these inputs have been derived from observable market data. This approach results in the classification of these securities as Level 2 of the fair value hierarchy.

	As of December 31, 2022
	Level I		Level II		Total
Assets:
Money market securities	$	8,909	$	—	$	8,909
U.S. Treasury securities		—		93,968		93,968
Total assets at fair value	$	8,909	$	93,968	$	102,877

	As of December 31, 2021
	Level I		Level II		Total
Assets:
Money market securities	$	21,390	$	—	$	21,390
U.S. Treasury securities		—		134,971		134,971
Total assets at fair value	$	21,390	$	134,971	$	156,361

During the year ended December 31, 2021, the Series W warrant expired unexercised on March 31, 2021 and the remaining fair value of $5.0 million was recorded at that time in the Consolidated Statement of Operations and Comprehensive Loss.

Upon completion of the Company's IPO in July 2021 all of the 14,376,272 issued and outstanding shares of Convertible Preferred Stock outstanding were converted to common stock and 225,945 warrants to purchase Series H convertible preferred stock were exercised and converted into 100,261 shares of common stock.

The fair value of the preferred stock warrants was determined by management, with input and assistance from a third-party valuation specialist using a probability weighted expected return model/option pricing model (“PWERM/OPM”) hybrid valuation model.
 

The Company did not have any assets or liabilities measured at fair value on a recurring basis within Level 3 fair value measurements as of December 31, 2022 and 2021.

The following table sets forth changes in the estimated fair values for the Company’s warrant liabilities measured using significant unobservable inputs (in thousands):

	Year Ended
	December 31, 2021
Beginning of period	$	8,846
Exercise of preferred stock warrants		(1,111	)
Expiration of common stock warrant		(5,018	)
Change in fair value of preferred stock warrants		(2,717	)
End of period	$	—