Fair Value Measurements

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

3. Fair Value Measurements

Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the

measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is as follows:

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

Level 2: Inputs, other than the quoted prices included in Level 1 that are either directly or indirectly observable.

Level 3: Unobservable inputs in which there is little or no market activity, which require the reporting entity to develop its own assumptions.

The following tables present information about the fair value measurements of the Company’s financial assets and liabilities which are measured at fair value on a recurring basis, and indicate the level of the fair value hierarchy utilized to determine such fair values (in thousands):

	June 30, 2022
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents
Money market fund	$	23,032	$	—	$	—	$	23,032
Commercial paper		—		13,987		—		13,987
Total cash equivalents		23,032		13,987		—		37,019
Marketable securities
U.S. Treasury securities		55,390		—		—		55,390
U.S. government agency securities		—		11,459		—		11,459
Corporate debt securities		—		2,979		—		2,979
Commercial paper		—		141,860		—		141,860
Asset backed securities		—		1,321				1,321
Total marketable securities		55,390		157,619		—		213,009
Total assets	$	78,422	$	171,606	$	—	$	250,028

	December 31, 2021
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents
Money market fund	$	23,712	$	—	$	—	$	23,712
Corporate debt securities		—		975		—		975
Commercial paper		—		34,248		—		34,248
Total cash equivalents		23,712		35,223		—		58,935
Marketable securities
U.S. Treasury securities		28,148		—		—		28,148
Corporate debt securities		—		4,039		—		4,039
Commercial paper		—		176,735		—		176,735
Asset backed securities		—		7,011		—		7,011
Total marketable securities		28,148		187,785		—		215,933
Total assets	$	51,860	$	223,008	$	—	$	274,868

In determining the fair value of its Level 2 investments, the Company relied on the most recent observable inputs for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or are directly or indirectly observable. These quoted prices were obtained by the Company with the assistance of a third-party pricing service based on available trade, bid and other observable market data for identical or similar securities. During the six months ended June 30, 2022, there were no transfers between Level 1, Level 2 and Level 3.

As of June 30, 2022 and December 31, 2021, the fair value of the Company’s available-for-sale marketable securities by type of security was as follows (in thousands):

	June 30, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
Marketable securities:
U.S. Treasury securities	$	56,077	$	—	$	(687	)	$	55,390
U.S. government agency securities		11,499		—		(40	)		11,459
Corporate debt securities		3,025		—		(46	)		2,979
Commercial paper		142,373		—		(513	)		141,860
Asset backed securities		1,324		—		(3	)		1,321
Total marketable securities	$	214,298	$	—	$	(1,289	)	$	213,009

	December 31, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
Marketable securities:
U.S. Treasury securities	$	28,204	$	—	$	(56	)	$	28,148
Corporate debt securities		4,042		—		(3	)		4,039
Commercial paper		176,742		17		(24	)		176,735
Asset backed securities		7,014		—		(3	)		7,011
Total marketable securities	$	216,002	$	17	$	(86	)	$	215,933

All of the Company’s marketable securities have maturity dates of two years or less.

The Company reviews its marketable securities at each reporting date to determine if any security is other-than-temporarily impaired, which would require the Company to record an impairment charge in that respective period. In making this judgment, the Company considers the intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value and the duration and extent that the market value has been less than cost.

As of June 30, 2022, all available-for-sale marketable securities were in an unrealized loss position, all of which had been in an unrealized loss position for less than 12 months. The Company evaluated the securities individually for other-than-temporary impairment and considered the unrealized losses to be temporary in nature as the Company has no intent to sell these securities and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis. Additionally, each security remained at a high credit quality rating. The decline in market value was primarily attributable to an increase in interest rates during the six months ended June 30, 2022. As such, the Company has classified the losses as temporary in nature.

At December 31, 2021, there were 26 available-for-sale marketable securities in an unrealized loss position, all of which had been in an unrealized loss position for less than 12 months, and the unrealized losses of each security were immaterial individually and in the aggregate.