Note 9 - Cash, Cash Equivalents, Investments and Restricted Cash

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Financial Instruments Disclosure [Text Block]

9. CASH, CASH EQUIVALENTS, INVESTMENTS AND RESTRICTED CASH

The following is a summary of the Company’s cash, cash equivalents and debt investments (in thousands):

	June 30,		December 31,
	2023		2022
Cash	$	459,145	$	273,145
Money market funds		47,814		15,462
Certificates of deposit		124,043		130,467
Corporate debt securities		183,695		292,586
Commercial paper		11,376		17,928
U.S. treasuries and government agency bonds		114,413		8,285
Auction-rate securities backed by student-loan notes		649		1,711
Total	$	941,135	$	739,584

	June 30,		December 31,
	2023		2022
Reported as:
Cash and cash equivalents	$	506,959	$	288,607
Short-term investments		433,527		449,266
Investment within other long-term assets		649		1,711
Total	$	941,135	$	739,584

The following table summarizes the contractual maturities of the short-term and long-term available-for-sale investments as of June 30, 2023 (in thousands):

	Amortized Cost		Fair Value
Due in less than 1 year	$	250,915	$	248,256
Due in 1 - 5 years		187,435		185,271
Due in greater than 5 years		650		649
Total	$	439,000	$	434,176

Gross realized gains and losses recognized on the sales of available-for-sale investments were not material for the periods presented.

The following tables summarize the unrealized gain and loss positions related to the available-for-sale investments (in thousands):

	June 30, 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Money market funds	$	47,814	$	-	$	-		$	47,814
Certificates of deposit		124,043		-		-			124,043
Corporate debt securities		187,961		1		(4,267	)		183,695
Commercial paper		11,376		-		-			11,376
U.S. treasuries and government agency bonds		114,970		11		(568	)		114,413
Auction-rate securities backed by student-loan notes		650		-		(1	)		649
Total	$	486,814	$	12	$	(4,836	)	$	481,990

	December 31, 2022
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Money market funds	$	15,462	$	-	$	-		$	15,462
Certificates of deposit		130,467		-		-			130,467
Corporate debt securities		300,529		18		(7,961	)		292,586
Commercial paper		17,928		-		-			17,928
U.S. treasuries and government agency bonds		8,487		-		(202	)		8,285
Auction-rate securities backed by student-loan notes		1,770		-		(59	)		1,711
Total	$	474,643	$	18	$	(8,222	)	$	466,439

The following tables present information about the available-for-sale investments that had been in a continuous unrealized loss position for less than 12 months and for greater than 12 months (in thousands):

	June 30, 2023
	Less than 12 Months					Greater than 12 Months					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Corporate debt securities	$	30,126	$	(103	)	$	151,567	$	(4,164	)	$	181,693	$	(4,267	)
U.S. treasuries and government agency bonds		106,771		(530	)		3,461		(38	)		110,232		(568	)
Auction-rate securities backed by student-loan notes		-		-			649		(1	)		649		(1	)
Total	$	136,897	$	(633	)	$	155,677	$	(4,203	)	$	292,574	$	(4,836	)

	December 31, 2022
	Less than 12 Months					Greater than 12 Months					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Corporate debt securities	$	72,943	$	(973	)	$	202,074	$	(6,988	)	$	275,017	$	(7,961	)
U.S. treasuries and government agency bonds		987		(2	)		7,298		(200	)		8,285		(202	)
Auction-rate securities backed by student-loan notes		-		-			1,711		(59	)		1,711		(59	)
Total	$	73,930	$	(975	)	$	211,083	$	(7,247	)	$	285,013	$	(8,222	)

An impairment exists when the fair value of an investment is less than its amortized cost basis. As of June 30, 2023 and December 31, 2022, the Company did not consider the impairment of its investments to be a result of credit losses. The Company typically invests in highly rated securities, with the primary objective of minimizing the potential risk of principal loss. The Company’s investment policy generally requires securities to be investment grade and limits the amount of credit exposure to any one issuer. When evaluating a debt security for impairment, management reviews factors such as the Company’s intent to sell, or whether it will more likely than not be required to sell, the security before recovery of its amortized cost basis, the extent to which the fair value of the security is less than its cost, the financial condition of the issuer and the credit quality of the investment.

Non-Marketable Equity Investment

In November 2020, the Company made an equity investment in a privately held Swiss company (the “Investee”) that was accounted for under the measurement alternative. In April 2022, the Company made an additional investment in the form of a convertible loan. One member of the Company’s Board of Directors is an executive officer of a company that has a commercial relationship with the Investee. In addition, the Company’s Chief Executive Officer had a personal investment in the Investee and was on the Investee’s board of directors. In May 2023, the Company sold all its investments in the Investee for $7.4 million and recorded a gain of $1.4 million, which was included as a component of other income (expense), net, in the Condensed Consolidated Statements of Operations.

Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Condensed Consolidated Balance Sheets to the amounts reported on the Condensed Consolidated Statements of Cash Flows (in thousands):

	June 30,		December 31,
	2023		2022
Cash and cash equivalents	$	506,959	$	288,607
Restricted cash included in other long-term assets		125		122
Total cash, cash equivalents and restricted cash reported on the Condensed Consolidated Statements of Cash Flows	$	507,084	$	288,729

As of June 30, 2023 and December 31, 2022, restricted cash included a security deposit that is set aside in a bank account and cannot be withdrawn by the Company under the terms of a lease agreement. The restriction will end upon the expiration of the lease.