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Fair Value Measurements
12 Months Ended
Dec. 31, 2022
Fair Value Measurements  
Fair Value Measurements

5. FAIR VALUE MEASUREMENTS

Money market funds are classified as Level 1 fair value instruments. Investments in available-for-sale debt securities are classified as Level 2 and carried at fair value, which we estimate utilizing a third-party pricing service. The pricing service utilizes industry standard valuation models whereby all significant inputs, including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, bids, offers, or other market-related data, are observable. We validate valuations obtained from third-party services by obtaining market values from other pricing sources. The Company did not classify any assets or liabilities as Level 3 as of December 31, 2022 or December 31, 2021.

The Company’s assets measured at fair value consisted of the following:

December 31, 2022

December 31, 2021

Total

Level 1

Level 2

Total

Level 1

Level 2

Assets

Cash equivalents

$

184,977

184,977

$

156,782

156,782

Commercial paper

27,388

27,388

Corporate debt securities

70,608

70,608

U.S. government securities

3,903

3,903

Total

$

286,876

184,977

101,899

$

156,782

156,782

The Company estimated the fair value of the warrant liability using the Black-Scholes option-pricing model at each balance sheet date or when specific events occurred. As discussed in Note 16, in connection with the Company’s IPO the warrant fair value was updated on August 19, 2020 with the change in fair value recorded in current period earnings as other expense in the consolidated statement of operations and reclassified to equity. During the year ended December 31, 2020, a loss of $3,109 was recorded in other expense in the consolidated statements of operations due to the change in the fair value of the warrant liability.

The range of assumptions used to determine the fair value of the warrant liability through August 19, 2020 were as follows:

Dividend yield

    

0.0

%

Expected volatility

 

54.2% - 68.8

%

Risk-free interest rate

 

0.17% - 1.56

%

Lack of marketability discount

 

0.0

%

Expected term (years)

 

1 - 4.5