Financial Instruments

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

NOTE 6 – FINANCIAL INSTRUMENTS

The Company has investments in debt securities which include corporate bonds and notes, treasury and agency notes and bills, commercial paper, certificates of deposit, and in equity securities consisting of money market funds. The Company classifies its debt securities as available-for-sale (“AFS”), which are accounted for at fair value with credit related losses recognized as a provision for credit losses in its Consolidated Statements of Operations and all non-credit related unrealized gains and losses recognized in accumulated other comprehensive income or loss on the Consolidated Balance Sheets. Under ASU 2016-01 (Topic 321), equity securities are measured at fair value with unrealized gains and losses recognized in other income and expense, net, in the Consolidated Statements of Operations.

The following is a summary of marketable securities at December 31, 2022 and December 31, 2021 (in thousands):


	December 31, 2022
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses		Estimated Fair Values
Marketable securities
Corporate bonds and notes	$	29,018	$	3	$	(6	)	$	—	$	29,015
Total debt securities		29,018		3		(6	)				29,015
Money market funds		4,107									4,107
Total equity securities		4,107		—		—			—		4,107
Total marketable securities	$	33,125	$	3	$	(6	)	$	—	$	33,122
Reported in:
Cash and cash equivalents										$	33,122


	December 31, 2021
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses		Estimated Fair Values
Marketable securities
Corporate bonds and notes	$	40,466	$	—	$	(53	)	$	—	$	40,413
Commercial paper		49,609		—		(18	)		—		49,591
Total debt securities		90,075		—		(71	)		—		90,004
Money market funds		12,372		—		—			—		12,372
Total equity securities		12,372		—		—			—		12,372
Total marketable securities	$	102,447	$	—	$	(71	)	$	—	$	102,376
Reported in:
Cash and cash equivalents										$	41,842
Available-for-sale debt securities											60,534
Total marketable securities										$	102,376

At December 31, 2022 and 2021, the Company had $114.6 million and $141.0 million, respectively, in cash, cash equivalents and short-term investments. A significant portion of these amounts were held in marketable securities, as shown above. The remaining balance of $81.5 million and $38.6 million at December 31, 2022 and December 31, 2021, respectively, was cash held in operating accounts not included in the tables above.

Debt Securities

The gross realized gains and losses on sales of marketable debt securities were immaterial during the years ended December 31, 2022, 2021 and 2020. Unrealized losses on AFS debt securities were immaterial as of December 31, 2022 and December 31, 2021. The Company evaluated whether the decline in fair value has resulted from credit losses or other factors and concluded these amounts were related to temporary fluctuations in value of AFS securities and were due primarily to changes in interest rates and market conditions of the underlying securities. In addition, the contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. The Company does not intend to sell the debt securities and it is more-likely-than-not that it will not be required to sell the investments before recovery of their amortized cost bases. The Company did not recognize a provision for credit loss expense related to its AFS debt securities for the years ended December 31, 2022 and 2021, respectively. No impairment charges were recorded on the AFS debt securities for the year ended December 31, 2022.

The following table summarizes the fair value and gross unrealized losses related to individual debt securities at December 31, 2022 and 2021, which have been in a continuous unrealized loss position, aggregated by investment category and length of time (in thousands):


December 31, 2022	Less Than 12 Months					12 Months or More				Total					Fair Value
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses			Cash and Cash Equivalents		AFS Debt Securities
Commercial paper	$	29,015	$	(6	)	$	—	$	—	$	29,015	$	(6	)	$	29,015	$	—


December 31, 2021	Less Than 12 Months					12 Months or More					Total					Fair Value
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Cash and Cash Equivalents		AFS Debt Securities
Corporate bonds and notes	$	29,807	$	(45	)	$	10,382	$	(8	)	$	40,189	$	(53	)	$	-	$	40,189
Commercial paper		48,091		(18	)		—		—			48,091		(18	)		29,470		18,621
Total	$	77,898	$	(63	)	$	10,382	$	(8	)	$	88,280	$	(71	)	$	29,470	$	58,810

The estimated fair value of marketable debt securities by contractual maturity at December 31, 2022 is shown below (in thousands). Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.


	Estimated Fair Value
Due in one year or less	$	29,015