Cash, Cash Equivalents and Available for Sale Securities

9 Months Ended

Sep. 30, 2020

Cash, Cash Equivalents, and Short-term Investments [Abstract]

Cash, Cash Equivalents and Available for Sale Securities

The Company considers all highly liquid investments purchased with original maturities of 90 days or less at the date of purchase to be cash equivalents. As of September 30, 2020 and December 31, 2019, the Company had cash and cash equivalents of approximately $122.8 million and $125.7 million, respectively. Cash and cash equivalents included cash of $3.7 million at September 30, 2020 and $3.2 million at December 31, 2019. Cash and cash equivalents at September 30, 2020 and December 31, 2019 included $119.1 million and $122.5 million, respectively, of investments in money market funds and certain investment-grade corporate debt securities with original maturities of 90 days or less.

The Company considers securities with original maturities of greater than 90 days at the date of purchase to be available for sale securities. As of September 30, 2020, the Company held available for sale securities of $108.3 million, all of which have maturities of less than one year. The Company held no available for sale securities at December 31, 2019, respectively.

The Company evaluates securities with unrealized losses, if any, to determine whether the decline in fair value has resulted from credit loss or other factors. The Company has determined that there were no credit losses in fair value of its investments as of September 30, 2020.

The Company classifies these securities as available for sale. However, the Company does not currently intend to sell its investments and the Company believes it is more likely than not that the Company will recover the carrying value of these investments.

The Company believes that its existing cash, cash equivalents and available for sale securities as of September 30, 2020 will be sufficient to fund its currently planned capital expenditure requirements and operating expenses for at least the next 12 months from the filing of this Quarterly Report on Form 10-Q. This estimate is based on the Company’s current business plan, which includes the continuation of its clinical development programs for Zimura, the progression of its IC-100 and IC-200 programs into the clinic, and the advancement of its IC-500 development program. This estimate assumes that the Company will enroll approximately 400 patients in the GATHER2 trial. This estimate does not reflect any additional expenditures resulting from the potential in licensing or acquisition of additional product candidates or technologies, commencement of any new sponsored research programs or any associated development the Company may pursue. The Company has based this estimate on assumptions that may prove to be wrong and the Company could use its available capital resources sooner than it currently expects.

Available for sale securities, including carrying value and estimated fair values, are summarized as follows:


	As of September 30, 2020
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
U.S. Treasury securities	45,220	1	—	45,221
Corporate debt securities	52,862	2	(5)	52,859
Asset-backed securities	10,220	3	—	10,223
Total	108,302	6	(5)	108,303

The Company’s available for sale securities are reported at fair value on the Company’s Balance Sheets. Unrealized gains (losses) are reported within other comprehensive income in the statements of comprehensive loss. The cost of securities sold and any realized gains/losses from the sale of available for sale securities are based on the specific identification method. The changes in other comprehensive income associated with the unrealized gain on available for sale securities during the three and nine months ended September 30, 2020 and 2019, respectively, were as follows:


	Three months ended September 30,				Nine Months Ended September 30, 2020
	2020		2019		2020		2019
Beginning balance	$	—	$	—	$	—	$	—
Current period changes in fair value before reclassifications, net of tax	1		—		1		—
Amounts reclassified from accumulated other comprehensive income, net of tax	—		—		—		—
Total other comprehensive income	1		—		1		—
Ending balance	$	1	$	—	$	1	$	—