Fair Value Measurements

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

3.Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows:

Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2 - Inputs other than quoted market prices included in Level 1 are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.

Level 3 - Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

The following tables summarize the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy:

		June 30, 2024
	Valuation Hierarchy	Amortized Cost		Unrealized Gain		Unrealized Loss			Fair Value
		(In thousands)
Assets:
Cash equivalents:
Money market funds	Level 1	$	264	$	—	$	—		$	264
U.S. treasuries	Level 1		15,967		—		—			15,967
Commercial paper	Level 2		18,940		—		(10	)		18,930
Government agencies bonds	Level 2		21,084		—		(2	)		21,082
Marketable securities:
U.S. treasuries	Level 1		13,302		—		(10	)		13,292
Commercial paper	Level 2		4,963		—		(3	)		4,960
Government agencies bonds	Level 2		22,959		—		(42	)		22,917
Total financial assets		$	97,479	$	—	$	(67	)	$	97,412

		December 31, 2023
	Valuation Hierarchy	Amortized Cost		Unrealized Gain		Unrealized Loss			Fair Value
		(In thousands)
Assets:
Cash equivalents:
Money market funds	Level 1	$	91	$	—	$	—		$	91
U.S. treasuries	Level 1		3,595		—		—			3,595
Commercial paper	Level 2		34,901		—		(18	)		34,883
Government agencies bonds	Level 2		6,389		1		—			6,390
Marketable securities:
U.S. treasuries	Level 1		16,182		4		(15	)		16,171
Commercial paper	Level 2		2,971		—		(2	)		2,969
Government agencies bonds	Level 2		39,897		6		(82	)		39,821
Total financial assets		$	104,026	$	11	$	(117	)	$	103,920

Money market funds and U.S. treasury securities are classified as Level 1 because they are valued using quoted market prices in active markets for identical assets. Financial instruments classified within Level 2 of the fair value hierarchy are valued based on observable inputs or can be derived from non-binding quotes from the Company’s investment managers, which are based on proprietary valuation models of independent pricing services. These models generally use inputs such as observable market data, quoted market prices for similar instruments, or historical pricing trends of a security relative to its peers.

The Company believes it is more likely than not that its marketable securities in an unrealized loss position will be held until maturity or the recovery of the cost basis of the investment. To date, the Company has not recorded any allowance for credit losses on its investment securities. Based upon its quarterly impairment review, the Company determined that the unrealized losses were not attributed to credit risk, but were primarily driven by the broader change in interest rates.

As of June 30, 2024, the fair value of available-for-sale marketable securities was $41.2 million, all of which had remaining maturities of less than one year.

The carrying amount of the Company’s remaining financial assets and liabilities, which include cash, receivables and payables, approximate their fair values due to their short-term nature.