INVESTMENTS

9 Months Ended

Sep. 30, 2022

INVESTMENTS

INVESTMENTS

4. INVESTMENTS

Marketable Securities

Marketable securities, which the Company classifies as available-for-sale securities, primarily consist of U.S. government debt obligations. Marketable securities with remaining effective maturities of twelve months or less from the balance sheet date are classified as short-term; otherwise, they are classified as long-term on the balance sheets.

The following tables provide the Company’s marketable securities by security type (in thousands):

	As of September 30, 2022								As of December 31, 2021
			Gross		Gross						Gross		Gross
			Unrealized		Unrealized		Estimated				Unrealized		Unrealized		Estimated
(in thousands)	Cost		Gains		Losses		Fair Value		Cost		Gains		Losses		Fair Value
US government agency debt security	$	6,967	$	23	$	—	$	6,990	$	27,042	$	1	$	(108)	$	26,935
Total	$	6,967	$	23	$	—	$	6,990	$	27,042	$	1	$	(108)	$	26,935

As of September 30, 2022, the Company’s investment portfolio reported no unrealized loss. Based on its evaluations, the Company determined that a credit loss allowance is not required since the decline was not related to underlying credit issues of the counterparties. The counterparties to these investments have high credit quality with investment grade ratings of at least AA+ or above, along with a history of no defaults. No single investment in the portfolio had an individually material unrealized loss and in the aggregate. In addition, the Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost bases. Accordingly, based on the foregoing evaluation, the Company did not record any credit losses during the nine months ended September 30, 2022. Unrealized gains are also reflected, net of tax, as other comprehensive income (loss) in the Statements of Comprehensive Loss.

Contractual maturities of the Company’s marketable securities are summarized as follows:

	As of September 30, 2022								As of December 31, 2021
			Gross		Gross						Gross		Gross
			Unrealized		Unrealized		Estimated				Unrealized		Unrealized		Estimated
(in thousands)	Cost		Gains		Losses		Fair Value		Cost		Gains		Losses		Fair Value
Due in one year or less	$	6,967	$	23	$	—	$	6,990	$	27,042	$	1	$	(108)	$	26,935
Due in one through two years		—		—		—		—		—		—		—		—
Total	$	6,967	$	23	$	—	$	6,990	$	27,042	$	1	$	(108)	$	26,935

At September 30, 2022, the Company had $23,000 of gross unrealized gains and $0 of gross unrealized losses primarily due to fluctuations in the fair value of certain U.S. government agency debt securities.

During the three and nine months ended September 30, 2022, the Company recorded gross realized losses of $3,000 and $0.2 million, respectively, and no gross realized gains of from the sale of marketable securities.

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of September 30, 2022 are as follows:

As of September 30, 2022

Securities in an unrealized loss position less than 12 months

Securities in an unrealized loss position greater than 12 months

Total

Unrealized

Estimated

Unrealized

Estimated

Unrealized

Estimated

(in thousands)

Losses

Fair Value

Losses

Fair Value

Losses

Fair Value

US government agency debt security

$

—

$

—

$

—

$

—

$

—

$

—

Total

$

—

$

—

$

—

$

—

$

—

$

—

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2021 are as follows:

	As of December 31, 2021
	Securities in an unrealized loss position less than 12 months				Securities in an unrealized loss position greater than 12 months				Total
	Unrealized		Estimated		Unrealized		Estimated		Unrealized		Estimated
(in thousands)	Losses		Fair Value		Losses		Fair Value		Losses		Fair Value
US government agency debt security	$	(108)	$	17,696	$	—	$	—	$	(108)	$	17,696
Total	$	(108)	$	17,696	$	—	$	—	$	(108)	$	17,696