Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

3. Fair Value Measurements

The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis by level within the fair value hierarchy:

	December 31, 2021
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Money market funds	$	115,410	$	—	$	—	$	115,410
US treasuries		24,053		—		—		24,053
Government treasury and agency securities		—		7,600		—		7,600
Corporate securities and commercial paper		—		171,842		—		171,842
Total assets	$	139,463	$	179,442	$	—	$	318,905

	December 31, 2020
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Money market funds	$	5,508	$	—	$	—	$	5,508
Liabilities:
Convertible preferred unit warrant liability	$	—	$	—	$	314	$	314

The fair value and amortized cost of investments in marketable securities by major security type are as follows:

	December 31, 2021
	Amortized Cost		Unrealized Gain		Unrealized Loss			Fair Value
	(In thousands)
Assets:
Money market funds	$	115,410	$	—	$	—		$	115,410
US treasuries		24,056	1			(4	)		24,053
Government treasury and agency securities		7,606		—		(6	)		7,600
Corporate securities and commercial paper		171,891		3		(52	)		171,842
Total financial assets	$	318,963	$	4	$	(62	)	$	318,905

	December 31, 2020
	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
	(In thousands)
Assets:
Money market funds	$	5,508	$	—	$	—	$	5,508

As of December 31, 2021, the fair value of the Company’s marketable securities, by maturity date, were as follows:

	(In thousands)
2022	$	132,436
2023		63,934
2024		—
2025		7,125
Total	$	203,495

During the years ended December 31, 2021 and 2020, there have been no significant realized gains or losses on available-for-sale investments, no investments had been in a continuous unrealized loss position for more than 12 months, and the Company did not recognize any other-than-temporary impairment losses on these securities.

Warrant Liability

Upon the closing of the IPO in September 2021, the convertible preferred stock warrants were converted into warrants to purchase common stock. All of the outstanding common stock warrants were net exercised in September 2021. The related warrant liabilities were remeasured using the value of the net shares issued on the date of settlement.  

The following table presents the changes in fair values of the Company’s convertible preferred stock warrants and common stock warrants, classified as level 3 financial liabilities:

	Year Ended December 31,
	2021			2020
	(In thousands)
Beginning balance	$	314		$	170
Fair value of warrants issued in connection with    debt financing		127			—
Change in fair value		1,318			144
Conversion of convertible preferred stock    warrants to common stock warrants    upon the closing of the IPO		(535	)		—
Reclassification of fair value of warrants to    equity upon the net exercise of warrants		(1,224	)		—
Ending balance	$	—		$	314

Prior to settlement, the fair value of the warrant liability was estimated using a hybrid approach between a probability-weighted expected return method (PWERM) and an option pricing model (OPM), which estimated the probability weighted value across multiple liquidity scenarios, while using OPM to estimate the allocation of value within one or more of those scenarios. The Company considered various scenarios, including a scenario in which the Company completes an IPO, a scenario in which the Company stays private, and a scenario contemplating a merger or acquisition.