Cash, Cash Equivalents and Available for Sale Securities

9 Months Ended

Sep. 30, 2022

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

Cash, Cash Equivalents and Available for Sale Securities

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, 2022 and December 31, 2021, the Company had cash and cash equivalents of approximately $153.1 million and $261.4 million, respectively. Cash and cash equivalents included cash of $9.9 million at September 30, 2022 and $9.9 million at December 31, 2021. Cash and cash equivalents at September 30, 2022 and December 31, 2021 included $143.2 million and $251.5 million, respectively, of investments in money market funds.

The Company considers debt securities with original maturities of greater than 90 days at the date of purchase to be available for sale securities. As of September 30, 2022 and December 31, 2021, the Company held available for sale securities of $167.4 million and $120.3 million, respectively, all of which have maturities of less than one year.

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, 2022. Factors considered in determining whether a loss resulted from a credit loss or other factors included the length of time and extent to which the investment’s fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, the extent of the loss related to credit of the issuer, the expected cash flows from the security, the Company’s intent to sell the security, and whether or not the Company will be required to sell the security before the recovery of its amortized cost.

The Company classifies these securities as available for sale. However, the Company has not sold and 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, 2022 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.

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

	As of September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	48,001	$	—	$	(183)	$	47,818
Corporate debt securities	100,383		—		(172)		100,211
Asset-backed securities	14,472		1		(37)		14,436
Supranational securities	4,974		—		(4)		4,970
Total	$	167,830	$	1	$	(396)	$	167,435

	As of December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	18,201	$	—	$	(16)	$	18,185
Corporate debt securities	82,138		—		(57)		82,081
Asset-backed securities	16,009		—		(14)		15,995
Supranational securities	4,044		—		(3)		4,041
Total	$	120,392	$	—	$	(90)	$	120,302

The Company’s available for sale securities are reported at fair value on the Company’s balance sheet. 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 accumulated other comprehensive income associated with the unrealized gain on available for sale securities during the three months ended September 30, 2022 and 2021, respectively, were as follows:

	Three months ended September 30,				Nine Months Ended September 30, 2022
	2022		2021		2022		2021
Beginning balance	$	(528)	$	3	$	(90)	$	3
Current period changes in fair value before reclassifications, net of tax	133		(14)		(305)		(14)
Amounts reclassified from accumulated other comprehensive income, net of tax	—		—		—		—
Total other comprehensive loss	$	133	$	(14)	(305)		(14)
Ending balance	$	(395)	$	(11)	$	(395)	$	(11)