Fair Value Measurements

3 Months Ended

Mar. 31, 2022

Cash equivalents and marketable securities are classified as available-for-sale securities and consisted of the following (in thousands):


	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
As of March 31, 2022
U.S. treasury securities	$	168,668	$	3	$	(662)	$	168,009
Money market funds	105,292		—		—		105,292
Commercial paper	44,373		—		—		44,373
Corporate and agency bonds	7,596		—		(18)		7,578
Totals	$	325,929	$	3	$	(680)	$	325,252
Classified as:
Cash and cash equivalents							$	105,292
Short-term marketable securities (amortized cost of $220,637)							219,960
Total							$	325,252


	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
As of December 31, 2021
U.S. treasury securities	$	141,093	$	—	$	(116)	$	140,977
Money market funds	129,763		—		—		129,763
Corporate and agency bonds	64,997		7		(20)		64,984
Commercial paper	8,497		—		—		$	8,497
Totals	$	344,350	$	7	$	(136)	$	344,221
Classified as:
Cash and cash equivalents							$	129,763
Short-term marketable securities (amortized cost of $214,587)							214,458
Total							$	344,221

Cash and cash equivalents in the table above excludes cash on deposit with banks of $4.6 million and $22.0 million as of March 31, 2022 and December 31, 2021, respectively.

To date, the Company has not recorded any impairment charges against the market value of its marketable securities. In determining whether a decline is other than temporary, the Company considers various factors including the length of time and extent to which the market value has been less than cost, the financial condition and near-term prospects of the issuer and the Company’s intent and ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value.

As of March 31, 2022 and December 31, 2021, all of the Company’s marketable securities had remaining contractual maturities of less than one year. As of March 31, 2022, the Company had 14 marketable securities in an unrealized loss position compared to 21 marketable securities in an unrealized loss position as of December 31, 2021. Marketable securities that had been in unrealized loss positions as of March 31, 2022 and December 31, 2021 had been in an unrealized loss position for less than twelve months. The Company does not intend to sell marketable securities that are in an unrealized loss position and it is highly unlikely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes, by major security type, our available-for-sale securities that were measured at fair value on a recurring basis and were categorized using the fair value hierarchy (in thousands):


	Fair Value Measurements
As of March 31, 2022	Level 1		Level 2		Level 3		Total
Assets:
U.S. treasury securities	$	168,009	$	—	$	—	$	168,009
Money market funds	105,292		—		—		105,292
Commercial paper	—		44,373		—		44,373
Corporate and agency bonds	—		7,578		—		7,578
Totals	$	273,301	$	51,951	$	—	$	325,252


	Fair Value Measurements
As of December 31, 2021	Level 1		Level 2		Level 3		Total
Assets:
U.S. treasury securities	$	140,977	$	—	$	—	$	140,977
Money market funds	129,763		—		—		129,763
Corporate and agency bonds	—		64,984		—		64,984
Commercial paper	—		8,497		—		8,497
Totals	$	270,740	$	73,481	$	—	$	344,221

The carrying amounts of cash and cash equivalents, the related party receivable and other current assets and liabilities approximate their respective fair values due to their short-term nature.

The Company estimates the fair values of investments in commercial paper and corporate and agency bond securities using Level 2 inputs by taking into consideration valuations obtained from third-party pricing services.

There were no transfers of assets or liabilities between the fair value measurement levels during the three months ended March 31, 2022 and year ended December 31, 2021.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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