Fair Value Measurements and Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements and Fair Value of Financial Instruments

3.FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS

The following tables set forth the fair value of the Company’s financial assets that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands).

	September 30, 2024
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	36,871	$	—	$	—	$	36,871
Total cash equivalents		36,871		—		—		36,871
Investments:
U.S. Treasury securities		—		128,836		—		128,836
Commercial paper		—		24,122		—		24,122
Corporate debt securities		—		121,914		—		121,914
Total investments		—		274,872		—		274,872
Total assets measured at fair value	$	36,871	$	274,872	$	—	$	311,743

	December 31, 2023
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	22,646	$	—	$	—	$	22,646
Corporate debt securities		—		1,550		—		1,550
U.S. Treasury securities		—		4,985		—		4,985
Total cash equivalents		22,646		6,535		—		29,181
Investments:
U.S. Treasury securities		—		225,180		—		225,180
U.S. Non-Treasury securities		—		11,901		—		11,901
Commercial paper		—		18,186		—		18,186
Corporate debt securities		—		85,316		—		85,316
Total investments		—		340,583		—		340,583
Total assets measured at fair value	$	22,646	$	347,118	$	—	$	369,764

There were no financial liabilities measured at fair value. The Company classifies money market funds within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The Company classifies its investments in U.S. Treasury securities (Treasury bills, Treasury notes, and Treasury bonds), U.S. Non-Treasury securities (government agency debt), commercial paper, and corporate debt securities as Level 2 instruments and obtains fair value from an independent pricing service, which may use quoted market prices for identical or comparable instruments or model-driven valuations using observable market data or inputs corroborated by observable market data.

The carrying amount of the Company’s accounts receivable, other receivables, prepaid expenses and other current assets, accounts payable and accrued expenses approximate fair value due to their short maturities.

The following is a summary of the Company’s cash equivalents and investments and the gross unrealized holding gains and losses (in thousands):

	September 30, 2024
	Amortized Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
Assets:
Cash equivalents:
Money market funds	$	36,871	$	—	$	—		$	36,871
Total cash equivalents		36,871		—		—			36,871
Investments:
U.S. Treasury securities		128,514		364		(42	)		128,836
Commercial paper		24,090		32		—			24,122
Corporate debt securities		121,479		443		(8	)		121,914
Total investments		274,083		839		(50	)		274,872
Total assets measured at fair value	$	310,954	$	839	$	(50	)	$	311,743

	December 31, 2023
	Amortized Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
Assets:
Cash equivalents:
Money market funds	$	22,646	$	—	$	—		$	22,646
Corporate debt securities		1,549		1		—			1,550
U.S. Treasury securities		4,984		1		—			4,985
Total cash equivalents		29,179		2		—			29,181
Investments:
U.S. Treasury securities		225,517		55		(392	)		225,180
U.S. Non-Treasury securities		11,904		2		(5	)		11,901
Commercial paper		18,166		26		(6	)		18,186
Corporate debt securities		85,190		142		(16	)		85,316
Total investments		340,777		225		(419	)		340,583
Total assets measured at fair value	$	369,956	$	227	$	(419	)	$	369,764

As of September 30, 2024 and December 31, 2023, unrealized losses on available-for-sale investments are not attributable to credit risk and are considered to be temporary. As of September 30, 2024, approximately $29.5 million of the Company's investments have been in a continuous unrealized loss position for twelve months or longer. The Company believes it is more likely than not that investments in an unrealized loss position will be held until maturity or the recovery of the cost basis of the investment. To date, the Company has not recorded any impairment charges on marketable securities related to other-than-temporary declines in market value. As of September 30, 2024, $64.9 million of available-for-sale investments had remaining maturities between one and two years. The remainder of the available-for-sale investments have a remaining maturity of one year or less. As of September 30, 2024 and December 31, 2023, the Company recorded $1.5 million and $1.3 million, respectively, of accrued interest related to its available-for-sale investments and is presented as other receivables on the unaudited condensed consolidated balance sheets.