Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

(5) Fair Value Measurements

Various inputs are used in determining the fair value of the Company’s financial assets and liabilities. These inputs are summarized into the following three broad categories:

Level 1 – quoted prices in active markets for identical securities

Level 2 – other significant observable inputs, including quoted prices for similar securities, interest rates, credit risk, etc.

Level 3 – significant unobservable inputs, including the Company’s own assumptions in determining fair value

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Marketable securities, which consist primarily of corporate and U.S. government agency bonds, are classified as available for sale and fair value does not differ significantly from carrying value as of December 31, 2021 and 2020. The following table presents information about the Company’s assets and liabilities measured at fair value as of December 31, 2021:

	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	—	$	456,212	$	—	$	456,212
Equity investments		39,561		—		1,887		41,448
Total	$	39,561	$	456,212	$	1,887	$	497,660

The following table presents information about the Company’s assets and liabilities measured at fair value as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	—	$	440,395	$	—	$	440,395
Equity investments		45,570		—		—		45,570
Total	$	45,570	$	440,395	$	—	$	485,965

Fair value of the Company’s investments in Nimbus Therapeutics, LLC (“Nimbus”) and ShouTi Inc. (“ShouTi”), classified as Level 3 in the fair value hierarchy, was determined under the hypothetical liquidated book value method (“HLBV method”), as further described in Note 12, Equity Investments. Significant unobservable inputs used under the HLBV method include Nimbus’ and ShouTi’s annual financial statements and the Company’s respective liquidation priorities. The following table sets forth changes in fair value of the Company’s Level 3 investments:

	Amount
As of December 31, 2019	$	108
Cash contributions		2,869
Unrealized loss		(2,977	)
As of December 31, 2020		-
Cash contributions		2,000
Unrealized loss		(113	)
As of December 31, 2021	$	1,887

Unrealized gains and losses arising from changes in fair value of the Company’s equity investments are classified within change in fair value in the consolidated statements of operations. During the years ended December 31, 2021 and 2020, there were no transfers between Level 1, Level 2 and Level 3 investments. See Note 12, Equity Investments, for further information.