Fair Value Measurements and Investments in Marketable Securities

3 Months Ended

Mar. 31, 2022

Investments Debt And Equity Securities [Abstract]

Fair Value Measurements and Investments in Marketable Securities

Note 3 – Fair Value Measurements and Investments in Marketable Securities

The carrying amounts of cash equivalents and marketable securities approximate their fair value based upon quoted market prices. Certain of the Company’s financial instruments are not measured at fair value on a recurring basis, but are recorded at amounts that approximate their fair value due to their liquid or short-term nature, such as cash, accounts receivable, accounts payable and accrued expenses.

The Company uses the following three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs to value its financial instruments:

Level 1: Observable inputs such as unadjusted quoted prices in active markets for identical instruments.

Level 2: Quoted prices for similar instruments that are directly or indirectly observable in the marketplace.

Level 3: Significant unobservable inputs that are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.

Investments in marketable securities consisted of the following (in thousands):

	March 31, 2022
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
Cash equivalents
Money market fund	$	48,361	$	—	$	—		$	48,361
Total cash equivalents		48,361		—		—			48,361
Short-term marketable securities
U.S. and foreign corporate debt securities		4,097		—		(63	)		4,034
Asset-backed securities		21,978		—		(97	)		21,881
U.S. and foreign commercial paper		45,913		—		(2	)		45,911
Total short-term marketable securities		71,988		—		(162	)		71,826
Long-term marketable securities
U.S. and foreign corporate debt securities		14,966		—		(280	)		14,686
U.S. treasury securities		8,966		—		(193	)		8,773
Total long-term marketable securities		23,932		—		(473	)		23,459
Total cash equivalents and marketable securities	$	144,281	$	—	$	(635	)	$	143,646

	December 31, 2021
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
Cash equivalents
Money market fund	$	42,507	$	—	$	—		$	42,507
Total cash equivalents		42,507		—		—			42,507
Short-term marketable securities
U.S. and foreign corporate debt securities		7,015		—		(2	)		7,013
Asset-backed securities		29,097		—		(38	)		29,059
U.S. and foreign commercial paper		64,929		—		(1	)		64,928
Total short-term marketable securities		101,041		—		(41	)		101,000
Long-term marketable securities
U.S. and foreign corporate debt securities		19,117		—		(74	)		19,043
U.S. treasury securities		8,960		—		(31	)		8,929
Total long-term marketable securities		28,077		—		(105	)		27,972
Total cash equivalents and marketable securities	$	171,625	$	—	$	(146	)	$	171,479

Short-term marketable securities held as of March 31, 2022 had contractual maturities of less than one year. Long-term marketable securities held as of March 31, 2022 had contractual maturities of at least one year but less than two years.

Realized gains and losses for the three months ended March 31, 2022 and 2021 were not significant. None of the Company’s investments have been in a continuous unrealized loss position for more than 12 months as of March 31, 2022.

The following tables present the fair value of the Company’s financial assets measured at fair value on a recurring basis (in thousands):

	March 31, 2022
	Level 1		Level 2		Level 3		Fair Value
Cash equivalents
Money market fund	$	48,361	$	—	$	—	$	48,361
Total cash equivalents		48,361		—		—		48,361
Short-term marketable securities
U.S. and foreign corporate debt securities		—		4,034		—		4,034
Asset-backed securities		—		21,881		—		21,881
U.S. and foreign commercial paper		—		45,911		—		45,911
Total short-term marketable securities		—		71,826		—		71,826
Long-term marketable securities
U.S. and foreign corporate debt securities		—		14,686		—		14,686
U.S. treasury securities		—		8,773		—		8,773
Total long-term marketable securities		—		23,459		—		23,459
Total assets measured at fair value	$	48,361	$	95,285	$	—	$	143,646

	December 31, 2021
	Level 1		Level 2		Level 3		Fair Value
Cash equivalents
Money market fund	$	42,507	$	—	$	—	$	42,507
Total cash equivalents		42,507		—		—		42,507
Short-term marketable securities
U.S. and foreign corporate debt securities		—		7,013		—		7,013
Asset-backed securities		—		29,059		—		29,059
U.S. and foreign commercial paper		—		64,928		—		64,928
Total short-term marketable securities		—		101,000		—		101,000
Long-term marketable securities
U.S. and foreign corporate debt securities		—		19,043		—		19,043
U.S. treasury securities		—		8,929		—		8,929
Total long-term marketable securities		—		27,972		—		27,972
Total assets measured at fair value	$	42,507	$	128,972	$	—	$	171,479

The Company estimates the fair value of its investments in marketable securities by taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities, prepayment/default projections based on historical data, and other observable inputs.

There were no transfers between Level 1, Level 2 or Level 3 during the periods presented.