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Fair Value Measurements
3 Months Ended
Apr. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements

 

4.

Fair Value Measurements

The following table presents information about our financial instruments that are measured at fair value on a recurring basis using the input categories further discussed in Note 1. “Summary of Business and Significant Accounting Policies” in the Notes to Consolidated Financial Statements in our Prospectus:

 

 

 

April 30, 2019

 

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(in thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

202,605

 

 

$

202,605

 

 

$

 

 

$

 

Treasury bills

 

 

253,796

 

 

 

 

 

 

253,796

 

 

 

 

Cash equivalents

 

 

456,401

 

 

 

202,605

 

 

 

253,796

 

 

 

 

Corporate bonds

 

 

53,739

 

 

 

 

 

 

53,739

 

 

 

 

Agency bonds

 

 

21,458

 

 

 

 

 

 

21,458

 

 

 

 

U.S. government agency securities

 

 

32,192

 

 

 

 

 

 

32,192

 

 

 

 

Marketable securities

 

 

107,389

 

 

 

 

 

 

107,389

 

 

 

 

Certificate of deposit

 

 

200

 

 

 

 

 

 

200

 

 

 

 

Prepaid expenses and other current assets

 

 

200

 

 

 

 

 

 

200

 

 

 

 

Certificates of deposit

 

 

2,144

 

 

 

 

 

 

2,144

 

 

 

 

Other assets, non-current

 

 

2,144

 

 

 

 

 

 

2,144

 

 

 

 

Total financial assets

 

$

566,134

 

 

$

202,605

 

 

$

363,529

 

 

$

 

 

 

 

January 31, 2019

 

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(in thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

78

 

 

$

78

 

 

$

 

 

$

 

Cash equivalents

 

 

78

 

 

 

78

 

 

 

 

 

 

 

Commercial paper

 

 

1,243

 

 

 

 

 

 

1,243

 

 

 

 

Corporate bonds

 

 

53,214

 

 

 

 

 

 

53,214

 

 

 

 

Agency bonds

 

 

32,604

 

 

 

 

 

 

32,604

 

 

 

 

U.S. government agency securities

 

 

24,017

 

 

 

 

 

 

24,017

 

 

 

 

Treasury bills

 

 

1,699

 

 

 

 

 

 

1,699

 

 

 

 

Marketable securities

 

 

112,777

 

 

 

 

 

 

112,777

 

 

 

 

Certificate of deposit

 

 

200

 

 

 

 

 

 

200

 

 

 

 

Prepaid expenses and other current assets

 

 

200

 

 

 

 

 

 

200

 

 

 

 

Certificates of deposit

 

 

2,144

 

 

 

 

 

 

2,144

 

 

 

 

Other assets, non-current

 

 

2,144

 

 

 

 

 

 

2,144

 

 

 

 

Total financial assets

 

$

115,199

 

 

$

78

 

 

$

115,121

 

 

$

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible promissory notes – derivative

   liabilities

 

$

163

 

 

$

 

 

$

 

 

$

163

 

Other liabilities, non-current

 

 

163

 

 

 

 

 

 

 

 

 

163

 

Total financial liabilities

 

$

163

 

 

$

 

 

$

 

 

$

163

 

 

We classify our highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. We classify our commercial paper, agency bonds, corporate bonds, U.S. government agency securities, treasury bills, and certificates of deposit within Level 2 because they are valued using inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. We classify the derivative liabilities as Level 3 due to the lack of relevant observable market data over fair value inputs such as the probability-weighting of the various scenarios that can impact settlement of the arrangement. There were no transfers of financial instruments between Level 1, Level 2, and Level 3 during the periods presented.

 

As discussed in Note 6 below, in connection with the IPO, the fair value of our derivative liabilities associated with our convertible promissory notes were extinguished. The following table sets forth a summary of the changes in the fair value of our Level 3 financial instruments as follows:

 

 

 

Derivative

Liabilities

 

 

 

(in thousands)

 

Balance - January 31, 2019

 

$

163

 

Extinguishment of derivative liabilities from the convertible

   promissory notes in connection with the IPO

 

 

(163

)

Balance - April 30, 2019

 

$