Investment Securities

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

5. Investment Securities

The Company’s investment policy defines allowable investment securities and establishes guidelines relating to credit quality, diversification, and maturities of its investments to preserve principal and maintain liquidity. In accordance with the Company’s investment policy, it has invested funds in marketable securities. The cost, gross unrealized holding gains, gross unrealized holding

losses, allowances for credit losses and fair value of available-for-sale investments by types, maturities and classes of securities at June 30, 2022 and December 31, 2021 consisted of the following (in thousands):


		As of June 30, 2022
											Estimated
									Allowance		Fair
		Amortized		Unrealized		Unrealized			for Credit		Market
	Maturity	Cost		Gains		Losses			Losses		Value
Certificates of deposits	Within 1 year	$	3,817	$	—	$	(50	)	$	—	$	3,767
U.S. Treasury securities	Within 1 year		162,295		—		(1,241	)		—		161,054
Certificates of deposits	1 year to 2 years		1,951		—		(26	)		—		1,925
U.S. Treasury securities	1 year to 2 years		73,975		—		(998	)		—		72,977
Total		$	242,038	$	—	$	(2,315	)	$	—	$	239,723

		As of December 31, 2021
											Estimated
									Allowance		Fair
		Amortized		Unrealized		Unrealized			for Credit		Market
	Maturity	Cost		Gains		Losses			Losses		Value
Certificates of deposits	Within 1 year	$	2,896	$	—	$	(3	)	$	—	$	2,893
U.S. Treasury securities	Within 1 year	$	15,045		—		(23	)			$	15,022
Certificates of deposits	1 year to 2 years	$	2,887		—		(9	)			$	2,878
U.S. Treasury securities	1 year to 2 years		64,911		—		(209	)		—		64,702
Total		$	85,739	$	—	$	(244	)	$	—	$	85,495

The Company reviews its investments at each reporting date to identify and evaluate whether a decline in fair value below the amortized cost basis of available-for-sale securities is due to credit-related factors and determines if such unrealized losses are the result of credit losses that require impairment. Factors considered in determining whether an unrealized loss is the result of a credit loss or other factors include the extent to which the fair value is less than the cost basis, any changes to the rating of the security by a rating agency, the financial condition and near-term prospects of the issuer, any historical failure of the issuer to make scheduled interest or principal payments, any adverse legal or regulatory events affecting the issuer or issuer’s industry, any significant deterioration in economic condition and the Company’s intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value.

At June 30, 2022 there were 67 securities in an unrealized loss position. The Company determined that there was no material change in the credit risk of the securities and considered the decline in market value to be primarily attributable to changes in interest rates. Each security remained at a high credit quality rating and the unrealized losses of each security was immaterial. Further, there had been no adverse conditions noted for any of the issuers and Company does not intend to sell any of the securities prior to maturity. As such, an allowance for credit losses has not been recognized. At December 31, 2021, there were 38 securities in an unrealized loss position.

As of June 30, 2022, the Company held 24 domestic certificates of deposit with amortized costs below the Federal Deposit Insurance Corporation (“FDIC”) insured limit. Accrued interest receivable on available-for-sale investment securities, included in prepaids and other current assets on the Company’s balance sheets, was $0.7 million and $0.1 million at June 30, 2022 and December 31, 2021, respectively.