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Fair Value of Financial Assets and Liabilities

3 Months Ended

Mar. 31, 2023

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIESAs of March 31, 2023, and December 31, 2022, the Company’s cash equivalents consisted of highly liquid investments with original maturities of 90 days or less from the date of purchase. These investments are classified as

available-for-sale and consist of Level 1 financial assets, which include money market funds and U.S. Treasury securities, and Level 2 financial assets, which include commercial paper.

Assets and liabilities measured at fair value are classified into the following categories:

•Level 1: Quoted market prices in active markets for identical assets or liabilities.

•Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.

The Company's cash equivalents are classified within Level 1 or Level 2 of the fair value hierarchy because their fair values are derived from quoted market prices or alternative pricing sources and models utilizing observable market inputs.

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis (in thousands):


	Fair Value Measurement as of March 31, 2023
	Level 1		Level 2		Level 3		Total
Assets
Money market funds	$	83,623	$	—	$	—	$	83,623
U.S. Treasury securities	21,123		—		—		21,123
Corporate paper	—		29,279		—		29,279
	$	104,746	$	29,279	$	—	$	134,025


	Fair Value Measurement as of December 31, 2022
	Level 1		Level 2		Level 3		Total
Assets
Money market funds	$	102,908	$	—	$	—	$	102,908
	$	102,908	$	—	$	—	$	102,908

Gross unrealized gains and gross unrealized losses related to the Company's short-term investments were not material as of March 31, 2022.

There have been no transfers of assets between fair value levels during the periods presented. The carrying values of other current assets, accounts payable and accrued expenses approximate their fair values due to the short-term nature of these assets and liabilities.

- 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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