Investments

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

3. INVESTMENTS

The Company invests its available cash primarily in U.S. Treasury securities, investment grade commercial paper, FDIC guaranteed certificates of deposit, equity-related securities and corporate notes. Investments classified as available-for-sale debt securities are carried at fair value with unrealized gains and losses recorded in accumulated other comprehensive income/(loss). Investments in equity securities are reported at fair value, with both realized and unrealized gains and losses recorded in other income (expense), in the consolidated statements of operations.

The following table presents the amortized cost and gross unrealized losses on all securities at June 30, 2021:

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
	(in thousands)
Short-term investments:
U.S. Treasury securities	$	14,749	$	—	$	—	$	14,749

The following table presents the amortized cost and gross unrealized losses on all securities at December 31, 2020:

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
	(in thousands)
Short-term investments:
U.S. Treasury securities	$	14,748	$	—	$	—	$	14,748

The Company values its investments at fair value, defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following:

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

● Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, 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.

The Company’s fixed-income available-for-sale debt securities consist of U.S. Treasury securities, high-quality investment grade commercial paper, FDIC guaranteed certificates of deposit, equity-related securities and corporate notes. The Company values these securities based on pricing from pricing vendors, who may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. The valuation techniques used to measure the fair value of the Company’s financial instruments having Level 2 inputs were derived from non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques.

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2021:

	Level 1		Level 2		Level 3		Total
	(in thousands)
Cash equivalents:
Money market funds	$	3,137	$	—	$	—	$	3,137
Investments:
Available-for-sale securities — current:
U.S. Treasury securities		—		14,749		—		14,749
Total	$	3,137	$	14,749	$	—	$	17,886

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
	(in thousands)
Cash equivalents:
Money market funds	$	3,136	$	—	$	—	$	3,136
Investments:
Available-for-sale securities — current:
U.S. Treasury securities		—		14,748		—		14,748
Total	$	3,136	$	14,748	$	—	$	17,884

There are no terms or conditions restricting the Company from redeeming any of its investments.

In addition to the debt securities noted above, the Company had approximately $7,564,000 and $7,994,000 of time deposits included in cash and cash equivalents as of June 30, 2021 and December 31, 2020, respectively.