Fair Value Measurements

9 Months Ended

Sep. 30, 2023

3. Fair Value Measurements

During the third quarter of 2023, the Company purchased $60.0 million of U.S. treasury bills with original maturities of six months or less. The Company classified these short-term investments as available-for-sale and are carried at fair value. The fair value of these securities approximate amortized cost as of September 30, 2023. The Company did not hold any marketable securities at December 31, 2022.

The following tables set forth by level, within the fair value hierarchy, the assets carried at fair value (in thousands):


	Fair value measurements at September 30, 2023 using
	Level 1		Level 2		Level 3		Total
Cash Equivalents:
Government securities	$	108,438	$	-	$	-	$	108,438
Money market funds		41,568		-		-		41,568
Marketable Securities:
Government securities		60,230		-		-		60,230
Total	$	210,236	$	-	$	-	$	210,236


	Fair value measurements at December 31, 2022 using
	Level 1		Level 2		Level 3		Total
Cash Equivalents:
Money market funds	$	116,946	$	-	$	-	$	116,946
Total	$	116,946	$	-	$	-	$	116,946

Money market funds and government securities are valued by the Company based on quoted market prices, which represent a Level 1 measurement within the fair value hierarchy. There were no transfers among Level 1, Level 2, or Level 3 categories in the periods presented.

The carrying value of cash, accounts payable and accrued expenses that are reported on the condensed consolidated balance sheets approximate their fair value due to the short-term nature of these assets and liabilities. The Company entered into long-term debt in September 2022; given the short period to maturity of the debt, the carrying value approximates fair value.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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