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Fair Value of Financial Assets and Liabilities
9 Months Ended
Sep. 30, 2022
Fair Value of Financial Assets and Liabilities  
Fair Value of Financial Assets and Liabilities

3. Fair Value of Financial Assets and Liabilities

The following tables summarize the assets and liabilities measured at fair value on a recurring basis at September 30, 2022 and December 31, 2021 (in thousands):

Fair Value Measurements at September 30, 2022

    

Total

    

Level 1

    

Level 2

    

Level 3

Assets:

  

  

  

  

Money market funds, included in cash and cash equivalents

$

122,040

$

122,040

$

$

Marketable securities:

 

  

 

  

 

  

 

  

U.S. Treasury obligations

210,580

210,580

Total assets

$

332,620

$

332,620

$

$

Fair Value Measurements at December 31, 2021

    

Total

    

Level 1

    

Level 2

    

Level 3

Assets:

  

  

  

  

Money market funds, included in cash and cash equivalents

$

188,493

$

188,493

$

$

Marketable securities:

 

  

 

  

 

  

 

  

U.S. Treasury obligations

 

40,159

 

40,159

 

 

Total assets

$

228,652

$

228,652

$

$

Cash, cash equivalents and marketable securities are Level 1 assets and include investments in money market funds and U.S. government securities that are valued using quoted market prices. Accordingly, money market funds and government funds are categorized as Level 1 as of September 30, 2022 and December 31, 2021. There were no transfers of assets between fair value measurement levels during the three and nine months ended September 30, 2022 or 2021.

The carrying amounts reflected in the balance sheets for prepaid expenses and other current assets, accounts payable, and accrued expenses approximate their fair values at September 30, 2022 and December 31, 2021, due to their short-term nature.

The Company believes the terms of its debt reflect current market conditions for an instrument with similar terms and maturity, therefore the carrying value of the Company's debt approximates its fair value based on Level 3 of the fair value hierarchy.