Fair Value Measurements and Marketable Securities

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements and Marketable Securities

3. Fair value measurements and marketable securities

The following tables present information about the Company’s financial assets that have been measured at fair value as of June 30, 2022 and indicate the fair value of the hierarchy of the valuation inputs utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair value determined by Level 2 inputs utilize observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted market prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. During the three and six months ended June 30, 2022 and 2021, there were no transfers between Level 1 and Level 2 financial assets.

The following table summarizes the Company’s cash equivalents and marketable securities as of June 30, 2022 (amounts in thousands):

	Fair Value Measurements at June 30, 2022 Using:
	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	14,739	$	—	$	—	$	14,739
Commercial paper		—		8,991		—		8,991
Total cash equivalents	$	14,739	$	8,991	$	—	$	23,730
Marketable securities
Corporate bonds	$	—	$	41,436	$	—	$	41,436
Commercial paper		—		75,985		—		75,985
Total marketable securities	$	—	$	117,421	$	—	$	117,421
Total	$	14,739	$	126,412	$	—	$	141,151

The following table summarizes the Company’s cash equivalents and marketable securities as of December 31, 2021 (amounts in thousands):

	Fair Value Measurements at December 31, 2021 Using:
	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	21,085	$	—	$	—	$	21,085
Corporate bonds		—		7,321		—		7,321
Commercial paper		—		13,198		—		13,198
Total cash equivalents	$	21,085	$	20,519	$	—	$	41,604
Marketable securities
Corporate bonds	$	—	$	94,794	$	—	$	94,794
Commercial paper				69,401		—		69,401
Total marketable securities	$	—	$	164,195	$	—	$	164,195
Total	$	21,085	$	184,714	$	—	$	205,799

The carrying amount reflected on the condensed consolidated balance sheets for research and development tax incentive receivable, trade receivables, accounts payable, and accrued expenses approximate fair value due to their short-term maturities. The carrying value of the Company’s outstanding notes payable approximates fair value (a Level 2 fair value measurement), reflecting interest rates currently available to the Company.

Marketable securities

The following table summarizes the Company’s level 2 cash equivalents and marketable securities as of June 30, 2022 (amounts in thousands):

	June 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Credit Losses		Fair Value
Corporate bonds	$	41,652	$	—	$	(216	)	$	—	$	41,436
Commercial paper		85,188		—		(212	)		—		84,976
Total	$	126,840	$	—	$	(428	)	$	—	$	126,412

The following table summarizes the Company’s level 2 cash equivalents and marketable securities as of December 31, 2021 (amounts in thousands):

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Credit Losses		Fair Value
Corporate bonds	$	102,224	$	—	$	(109	)	$	—	$	102,115
Commercial paper		82,657		—		(58	)		—		82,599
Total	$	184,881	$	—	$	(167	)	$	—	$	184,714

The following table summarizes the Company’s debt securities by contractual maturity, as of June 30, 2022 and December 31, 2021 (amounts in thousands):

	June 30,		December 31,
	2022		2021
Maturities in one year or less	$	122,192	$	172,575
Maturities between one year and three years		4,220		12,139
Total	$	126,412	$	184,714