Fair Value Measurements

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

2. Fair Value Measurements

The carrying amounts of cash equivalents, prepaid and other assets, accounts payable and accrued liabilities are considered to be representative of their respective fair values because of the short-term nature of those instruments. Investment securities are recorded at fair value.

The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1: Observable inputs such as quoted prices in active markets.

Level 2: Inputs, other than the quoted prices in active markets that are observable either directly or indirectly.

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Financial assets measured at fair value on a recurring basis consist of investment securities. Investment securities are recorded at fair value, defined as the exit price in the principal market in which we would transact, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Level 2 securities are valued using quoted market prices for similar instruments, non-binding market prices that are corroborated by observable market data, or discounted cash flow techniques and include our investments in commercial paper, corporate debt securities and asset-bask securities. We have no financial liabilities measured at fair value on a recurring basis. None of our non-financial assets and liabilities are recorded at fair value on a non-recurring basis. No transfers between levels have occurred during the periods presented.

Assets measured at fair value on a recurring basis are as follows (in thousands):

			Fair Value Measurements Using
	Total		QuotedPricesin ActiveMarkets forIdentical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
As of March 31, 2021
Assets:
Current:
Cash equivalents	$	11,958	$	11,958	$	—	$	—
Available-for-sale investments:
Asset-backed securities		1,008		—		1,008		—
Commercial paper		18,183		—		18,183		—
Corporate debt securities		18,859		—		18,859		—
Total available-for-sale investments		38,050		—		38,050		—
Total assets measured at fair value	$	50,008	$	11,958	$	38,050	$	—

			Fair Value Measurements Using
	Total		QuotedPricesin ActiveMarkets forIdentical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
As of December 31, 2020
Assets:
Current:
Cash equivalents	$	13,708	$	13,708	$	—	$	—
Available-for-sale investments:
Asset-backed securities		2,219		—		2,219		—
Commercial paper		5,494		—		5,494		—
Corporate debt securities		7,024		—		7,024		—
Total available-for-sale investments		14,737		—		14,737		—
Total assets measured at fair value	$	28,445	$	13,708	$	14,737	$	—

As of March 31, 2021 and December 31, 2020, available-for-sale investments are detailed as follows (in thousands):

		March 31, 2021
	Contractual Maturity	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Market Value
Available-for-sale investments:
Asset-backed securities	Within 1 year	$	1,008	$	—	$	—		$	1,008
Commercial paper	Within 1 year		18,183		—		—			18,183
Corporate debt securities	1 to 2 years		18,866		—		(7	)		18,859
		$	38,057	$	—	$	(7	)	$	38,050

		December 31, 2020
	Contractual Maturity	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Market Value
Available-for-sale investments:
Asset-backed securities	Within 1 year	$	2,218	$	1	$	—	$	2,219
Commercial paper	Within 1 year		5,491		3		—		5,494
Corporate debt securities	Within 1 year		7,021		3		—		7,024
		$	14,730	$	7	$	—	$	14,737

At each reporting date, we perform an evaluation of impairment to determine if any unrealized losses are other-than-temporary. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition of the issuer, and our intent and ability to hold the investment until recovery of its amortized cost basis. We intend, and have the ability, to hold our investments in unrealized loss positions until their amortized cost basis has been recovered.

As of March 31, 2021, all of our available-for-sale investments had a variety of effective maturity dates of less than two years. As of March 31, 2021, 15 out of 25 of the available-for-sale investments were in gross unrealized loss positions.