Fair Value Measurements

9 Months Ended

Sep. 30, 2022

The Company’s assets and liabilities measured at fair value on a recurring basis consisted of the following as of September 30, 2022, and December 31, 2021 (in thousands):


	Fair value measured at September 30, 2022
	Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets at fair value:
Cash and cash equivalents	$	201,221	$	—	$	—	$	201,221
Short-term investments	$	100,000	$	—	$	—	$	100,000
Total assets at fair value	$	301,221	$	—	$	—	$	301,221


	Fair value measured at December 31, 2021
	Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets at fair value:
Cash and cash equivalents	$	374,294	$	—			$	374,294
Total assets at fair value	$	374,294	$	—	$	—	$	374,294

Liabilities at fair value:
Warrant liabilities	$	—	$	—	$	3,548	$	3,548
Total liabilities at fair value	$	—	$	—	$	3,548	$	3,548

The Company's cash and cash equivalents, and time-based deposits are recorded at carrying value, which generally approximates fair value based on Level 1 measurements. These instruments are valued using quoted market prices for identical unrestricted instruments in active markets. As of September 30, 2022, the Company held $50.0 million in a money market account classified as cash and cash equivalents and $100.0 million of time-based deposits classified as short-term investments in the condensed consolidated balance sheet. There were no time-based deposits as of December 31, 2021. See Note 3 for further discussion of the Company’s accounting policies relating to its money market accounts and time-based deposits.

Certain of the Company’s warrants are classified as liabilities and measured at fair value on the issuance date, with changes in fair value recognized as other income (expense) in the condensed consolidated statements of operations and comprehensive loss. As of September 30, 2022, there were no warrant liabilities outstanding.

The following table presents changes in Level 3 liabilities measured at fair value (in thousands) for the nine months ended September 30, 2022. Unobservable inputs were used to determine the fair value of positions that the Company has classified within the Level 3 category.


	Warrant liabilities
Fair value at December 31, 2021	$	3,548
Change in fair value	1,701
Redemption	(5,249)


Fair value at September 30, 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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