Investments

6 Months Ended

Jun. 30, 2022

Investments

Investments

Note 4 – Investments

Financial assets measured at fair value on a recurring basis consist of the Company’s cash equivalents and AFS securities. The Company obtains pricing information from its investment manager and generally determines the fair value of investment securities using standard observable inputs, including reported trades, broker/dealer quotes, and bids and/or offers.

Investments are classified as Level 1 within the fair value hierarchy if their quoted prices are available in active markets for identical securities. Investments in money market funds and U.S. government securities were classified as Level 1 instruments.

Investments in commercial paper, corporate debt securities and U.S. agency bonds are valued using Level 2 inputs. The Company classifies investments within Level 2 if the investments are valued using model driven valuations using observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Investments are held by custodians who obtain investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models.

The following table summarizes, by major types of cash equivalents, and investments that are measured at fair value on a recurring basis (in thousands):

	June 30, 2022
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Money market funds	$	11,870	$	—	$	—	$	11,870
Commercial paper		56,312		7		(43)		56,276
U.S. government securities		25,283		—		(247)		25,036
U.S. agency bonds		9,507		—		(72)		9,435
Corporate debt securities		2,010		—		(18)		1,992
Cash equivalents and investments	$	104,982	$	7	$	(380)	$	104,609

	December 31, 2021
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Money market funds	$	10,585	$	—	$	—	$	10,585
Commercial paper		84,642		2		(28)		84,616
U.S. government securities		27,870		—		(46)		27,824
U.S. agency bonds		8,546		—		(15)		8,531
Corporate debt securities		8,267		—		(2)		8,265
Cash equivalents and investments	$	139,910	$	2	$	(91)	$	139,821

The contractual maturities of the Company’s AFS securities were as follows (in thousands):

	June 30, 2022		December 31, 2021
Due within one year	$	62,344	$	105,173
Due within one to two years		—		10,265
Total	$	62,344	$	115,438

The available-for-sale investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current condensed consolidated balance sheet date, which reflects management’s intention to use the proceeds from sales of these securities to fund the Company’s operations, as necessary. There were no realized gains or losses due to investment sales for the three and six months ended June 30, 2022 and 2021. As of June 30, 2022, $92.7 million of the Company’s marketable securities were in gross unrealized loss positions, of which none had been in such position for greater than 12 months and $52.6 million will mature within three months of June 30, 2022.

At each reporting date, the Company performs an evaluation of its marketable securities to determine if any unrealized losses are other-than-temporary. Factors considered in determining whether a loss is other-than-temporary include (i) the financial strength of the issuing institution, (ii) the length of time and extent for which fair value has been less than the cost basis and (iii) the Company’s intent and ability to hold its investments in unrealized loss positions until their amortized cost basis has been recovered. Based on the Company’s evaluation, it determined that its unrealized losses were not other-than-temporary at June 30, 2022 and December 31, 2021. The Company does not intend to sell the investments before maturity, and it is unlikely that the Company will be required to sell the investments before recovery of their amortized cost bases.