FAIR VALUES OF ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2022

FAIR VALUES OF ASSETS AND LIABILITIES

FAIR VALUES OF ASSETS AND LIABILITIES

5. FAIR VALUES OF ASSETS AND LIABILITIES

The Company groups its assets and liabilities generally measured at fair value in 3 levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Refer to Note 2, "Significant Accounting Policies," for additional information on the accounting policies related to fair value.

Assets and liabilities measured at fair value on a recurring basis are summarized below:

	As of December 31, 2022
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Cash equivalents	$	16,296	$	—	$	—	$	16,296

	As of December 31, 2021
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Cash equivalents	$	19,026	$	—	$	—	$	19,026

During the years ended December 31, 2022 and 2021, there were no transfers between levels. The fair value of the Company’s cash equivalents, consisting of a money market fund, is based on quoted market prices in active markets with no valuation adjustment.

The Company believes the carrying amounts of its prepaid expenses and other current assets, restricted cash, accounts payable and accrued expenses approximate their fair value due to the short-term nature of these amounts.