Fair Value Measurements

12 Months Ended

Dec. 31, 2023

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


	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
As of December 31, 2023
Money market funds	$	49,374	$	—	$	—	$	49,374
U.S. Treasury securities	47,901		23		(1)		47,923
Corporate and agency bonds	20,820		8		(7)		20,821
Commercial paper	19,630		1		(6)		19,625
Totals	$	137,725	$	32	$	(14)	$	137,743
Classified as:
Cash and cash equivalents							$	49,374
Short-term marketable securities (amortized cost of $88,351)							88,369
Total							$	137,743


	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
As of December 31, 2022
U.S. Treasury securities	$	89,039	$	7	$	(160)	$	88,886
Money market funds	62,844		—		—		62,844
Corporate and agency bonds	46,300		—		(200)		46,100
Commercial paper	42,746		—		—		42,746
U.S. government agency securities	20,253		51		—		20,304
Totals	$	261,182	$	58	$	(360)	$	260,880
Classified as:
Cash and cash equivalents							$	62,844
Short-term marketable securities (amortized cost of $198,338)							198,036
Total							$	260,880

The cash and cash equivalents amount in the table above excludes cash on deposit with banks of $6.4 million and $10.6 million as of December 31, 2023 and 2022, respectively.

To date, the Company has not recorded any impairment charges against the market value of its marketable securities. In determining whether an investment is impaired, 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 time period sufficient to allow for any anticipated recovery in market value.

As of December 31, 2023 and 2022, all of the Company’s marketable securities had remaining contractual maturities of less than one year. As of December 31, 2023, the Company had nine marketable securities in an unrealized loss position compared to 19 marketable securities in an unrealized loss position as of December 31, 2022. Marketable securities that were in unrealized loss positions as of December 31, 2023 and 2022 had been in an unrealized loss position for less than twelve months. The Company does not need to, nor does it 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, the Company's 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 December 31, 2023	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	49,374	$	—	$	—	$	49,374
U.S. Treasury securities	47,923		—		—		47,923
Corporate and agency bonds	—		20,821		—		20,821
Commercial paper	—		19,625		—		19,625
Totals	$	97,297	$	40,446	$	—	$	137,743


	Fair Value Measurements
As of December 31, 2022	Level 1		Level 2		Level 3		Total
Assets:
U.S. Treasury securities	$	88,886	$	—	$	—	$	88,886
Money market funds	62,844		—		—		62,844
Corporate and agency bonds	—		46,100		—		46,100
Commercial paper	—		42,746		—		42,746
U.S. government agency securities	—		20,304		—		20,304
Totals	$	151,730	$	109,150	$	—	$	260,880

The Level 1 fair values are based on quoted prices in active markets for identical assets or liabilities. The Company estimates the fair values of investments in commercial paper, corporate and agency bond securities and U.S. government agency 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 years ended December 31, 2023 and 2022.

- 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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