Cash, Cash Equivalents and Investments

12 Months Ended

Dec. 31, 2023

Note 4: Cash, Cash Equivalents and Investments

The following tables categorize the fair values of cash, cash equivalents, short-term investments and long-term investments measured at fair value on a recurring basis on our balance sheets (in thousands):


	December 31,
	2023		2022
Cash and cash equivalents:
Cash	$	1,521	$	3,986
Money market funds		4,285		10,988
Repurchase agreements		—		9,000
Government and agency notes		14,946		20,605
Total cash and cash equivalents	$	20,752	$	44,579

Short-term investments:
Certificates of deposit	$	729	$	5,390
Municipal notes		—		506
Corporate notes		—		12,411
Government and agency notes		53,578		27,295
Total short-term investments	$	54,307	$	45,602

Long-term investments
Certificates of deposit	$	—	$	712
Government and agency notes		—		2,866
Total long-term investments	$	—	$	3,578

The investments are classified as available-for-sale securities. As of December 31, 2023, the weighted average remaining contractual maturities of available-for-sale securities was approximately 2 months. At December 31, 2023 and 2022, the unrealized gain (loss) activity related to the Company’s available-for-sale securities is included in the Company’s accumulated other comprehensive loss. There were no significant realized gains or losses recognized on the sale or maturity of available-for-sale securities for the years ended December 31, 2023 and 2022 and as a result, the Company did not reclassify any amounts out of accumulated other comprehensive loss. Based on the Company’s review of its available-for-sale securities, the Company has a limited number of available-for-sale securities in insignificant loss positions as of December 31, 2023. No other-than-temporary impairments on these securities were recognized for the years ended as of December 31, 2023 and 2022.

For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value and recognized in interest and other income, net in the statement of operations and comprehensive loss. If neither criteria is met, the Company evaluates whether the decline in fair value is related to credit-related factors or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. Credit-related impairment losses, limited by the amount that the fair value is less than the amortized cost basis, are recorded through an allowance for credit losses in interest and other income, net.

Any unrealized losses from declines in fair value below the amortized cost basis as a result of non-credit factors are recognized in accumulated other comprehensive loss, net of tax as a separate component of stockholders’ equity, along with unrealized gains. Realized gains and losses and declines in fair value, if any, on available-for-sale securities are included in interest and other income, net in the statement of operations and comprehensive loss.

For purposes of identifying and measuring credit-related impairments, the Company’s policy is to exclude applicable accrued interest from both the fair value and amortized cost basis of the related security. The Company has elected to write-off uncollectible accrued interest receivable balances in a timely manner, which is defined by the Company as when interest due becomes 90 days delinquent. The accrued interest write-off will be recorded by reversing interest income. Accrued interest receivable is recorded in other current assets on the balance sheets.

The following table summarizes the available-for-sale securities (in thousands):


	Fair Value Measurements at December 31, 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Money market funds	$	4,285	$	—	$	—		$	4,285
Certificates of Deposit		735		—		(6	)		729
Government and agency notes		68,528		13		(17	)		68,524
Total cash equivalents and investments	$	73,548	$	13	$	(23	)	$	73,538

Classified as:
Cash equivalents (original maturities within 90 days)								$	19,231
Short-term investments (maturities within 1 year)									54,307
Total cash equivalents and investments								$	73,538


	Fair Value Measurements at December 31, 2022
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Money market funds	$	10,988	$	—	$	—		$	10,988
Certificates of Deposit		6,237		1		(136	)		6,102
Repurchase Agreements		9,000		—		—			9,000
Corporate notes		12,575		—		(164	)		12,411
Government and agency notes		51,020		4		(258	)		50,766
Municipal notes		510		—		(4	)		506
Total cash equivalents and investments	$	90,330	$	5	$	(562	)	$	89,773

Classified as:
Cash equivalents (original maturities within 90 days)								$	40,593
Short-term investments (maturities within 1 year)									45,602
Long-term investments (maturities beyond 1 year)									3,578
Total cash equivalents and investments								$	89,773

The table below summarizes the unrealized losses of the Company's investments in debt securities measured at fair value as of December 31, 2023 (in thousands):


	Less than twelve months				Twelve months or greater					Total
	Fair value		Gross unrealized loss		Fair value		Gross unrealized loss			Fair value		Gross unrealized loss
Certificates of deposit	$	—	$	—	$	729	$	(6	)	$	729	$	(6	)
Government and agency notes		3,966		—		2,975		(17	)		6,941		(17	)
Total cash equivalents and investments	$	3,966	$	—	$	3,704	$	(23	)	$	7,670	$	(23	)

There were no transfers between Levels 1, 2 or 3 for the period presented.

The table below summarizes the contractual maturities of the Company's investments in debt securities measured at fair value as of December 31, 2023 (in thousands):


	Maturities by Period
	Total		Less Than 1 Year		1-5 Years		6-10 Years		More Than 10 Years
Fair value of debt securities	$	54,307	$	54,307	$	—	$	—	$	—