FAIR VALUE OF FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2025

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

(3) FAIR VALUE OF FINANCIAL INSTRUMENTS

The following tables summarize the Company’s financial assets measured at fair value on a recurring basis and their respective input levels based on the fair value hierarchy (in thousands):

			Fair Value Measurements Using
			Quoted Prices in
			Active Markets		Significant Other		Significant
			for Identical		Observable		Unobservable
	March 31,		Assets		Inputs		Inputs
	2025		(Level 1)		(Level 2)		(level 3)
Assets:
Cash equivalents
Money market funds	$	43,192	$	43,192	$	—	$	—
Total cash equivalents		43,192		43,192		—		—
Short-term investments
Agency bonds		18,527		—		18,527		—
Corporate debt securities		9,025		—		9,025		—
U.S. Treasury bills		4,438		4,438		—		—
Total short-term investments		31,990		4,438		27,552		—
Total fair value of assets	$	75,182	$	47,630	$	27,552	$	—

			Fair Value Measurements Using
			Quoted Prices in
			Active Markets		Significant Other		Significant
			for Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2024		(Level 1)		(Level 2)		(level 3)
Assets:
Cash equivalents
Money market funds	$	33,529	$	33,529	$	—	$	—
Total cash equivalents		33,529		33,529		—		—
Short-term investments
Agency bonds		27,429		—		27,429		—
Corporate debt securities		9,057		—		9,057		—
U.S. Treasury bills		8,386		8,386		—		—
Total short-term investments		44,872		8,386		36,486		—
Total fair value of assets	$	78,401	$	41,915	$	36,486	$	—

Cash Equivalents and Short-Term Investments

Financial assets measured at fair value on a recurring basis consist of the Company’s cash equivalents and short-term investments. Cash equivalents consisted of cash and money market funds, and short-term investments consisted of U.S. Treasury bills, agency bonds, and corporate debt 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.

The following tables summarize the Company’s short-term investments (in thousands):

		As of March 31, 2025
				Gross		Gross
		Amortized		unrealized		unrealized		Estimated fair
	Maturity	cost		gains		losses		value
Agency bonds	1 year or less		18,497		30		—		18,527
Corporate debt securities	1 year or less		9,005		20		—		9,025
U.S. Treasury bills	1 year or less		4,438		—		—		4,438
		$	31,940	$	50	$	—	$	31,990

		As of December 31, 2024
				Gross		Gross
		Amortized		unrealized		unrealized		Estimated fair
	Maturity	cost		gains		losses		value
Agency bonds	1 year or less	$	27,358		71		—	$	27,429
Corporate debt securities	1 year or less		9,031		27		(1)		9,057
U.S. Treasury bills	1 year or less		8,378		8		—		8,386
		$	44,767	$	106	$	(1)	$	44,872

The Company did not hold any short-term investments with unrealized loss positions as of March 31, 2025. The following tables summarize the Company’s short-term investments with unrealized losses for less than 12 months and 12 months or greater as of December 31, 2024 (in thousands):

		As of December 31, 2024
		Less than 12 months			12 months or greater
			Unrealized				Unrealized		Total		Total Unrealized
		Fair Value	Losses		Fair Value		Losses		Fair Value		Losses
Corporate debt securities	$	2,016	$	(1)	$	—	$	—	$	2,016	$	(1)
	$	2,016	$	(1)	$	—	$	—	$	2,016	$	(1)

The Company considers whether unrealized losses have resulted from a credit loss or other factors. The unrealized losses on the Company’s available-for-sale securities as of December 31, 2024 were caused by fluctuations in market value and interest rates as a result of the economic environment and not credit risk. As of March 31, 2025 and December 31, 2024, no allowance for credit losses was recorded. During the three months ended March 31, 2025, the Company did not recognize any impairment losses related to its short-term investments. It is neither management’s intention to sell nor is it more likely than not that the Company will be required to sell these investments prior to recovery of their cost basis or recovery of fair value. Unrealized gains and losses are included in accumulated other comprehensive loss.

Accrued interest receivable is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected to default on payment. Accrued interest receivable related to short-term investments was $0.3 million and $0.5 million as of March 31, 2025 and December 31, 2024, respectively.