Investments

3 Months Ended

Mar. 31, 2023

3. Investments

Cash Equivalents — Cash equivalents consist of highly liquid investments with original or remaining maturities of 90 days or less at the time of purchase that are readily convertible into cash.

Available-for-Sale Investment — The Thirona convertible notes are classified as available-for-sale securities and are included in other assets in the condensed consolidated balance sheet. Available-for-sale investments are subsequently measured at fair value. Unrealized holding gains and losses are excluded from earnings and reported in other comprehensive income until realized. The Company determines fair value of its available-for-sale investments using level 3 inputs. The Company evaluates the fair value of its investment in Thirona by applying a Monte Carlo simulation model. As of March 31, 2023 and December 31, 2022, the fair value of the Company's investment in Thirona was $7.1 million.

Held-to-Maturity Investments — Investments consist of highly liquid investments that are intended to facilitate liquidity and capital preservation. The amortization or accretion of the Company’s investments is recognized as interest income in the condensed consolidated statements of operations. For the three months ended March 31, 2023, the Company recognized $1.2 million of interest income on investments and a de minimis amount of amortization on certain investments. For the three months ended March 31, 2022, the Company recognized $0.4 million of interest income on investments and $0.3 million of amortization on certain investments. No allowance for credit losses on held-to-maturity securities was required as of March 31, 2023.

The contractual maturities of the Company’s held to maturity investments are summarized below (in thousands):


	March 31, 2023				December 31, 2022
	Amortized Cost Basis		Aggregate Fair Value		Amortized Cost Basis		Aggregate Fair Value
Due in one year or less(1)	$	154,569	$	154,314	$	152,862	$	156,976
Due after one year through five years		492		496		1,961		1,948
Total	$	155,061	$	154,810	$	154,823	$	158,924

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(1)

The investments due in one year or less include cash equivalents of $74.3 million as of March 31, 2023 and $51.8 million as of December 31, 2022.

The fair value of the cash equivalents, long-term and short-term investments are disclosed below (dollars in thousands).


	March 31, 2023
	Investment Level	Amortized Cost (Carrying Value)		Gross Unrealized Holding Losses			Estimated Fair Value
Commercial bonds and paper	Level 2	$	56,832	$	(269	)	$	56,563
Money market funds	Level 1		74,295		—			74,295
U.S. Treasuries	Level 2		23,934		(317	)		23,617
Total cash equivalents and investments			155,061		(586	)		154,475
Less: cash equivalents			74,296		—			74,296
Total Investments		$	80,765	$	(586	)	$	80,179


	December 31, 2022
	Investment Level	Amortized Cost (Carrying Value)		Gross Unrealized Holding Losses			Estimated Fair Value
Commercial bonds and paper	Level 2	$	66,762	$	(594	)	$	66,168
Money market funds	Level 1		51,783		—			51,783
U.S. Treasuries	Level 2		36,278		(587	)		35,691
Total cash equivalents and investments			154,823		(1,181	)		153,642
Less: cash equivalents			51,783		—			51,783
Total Investments		$	103,040	$	(1,181	)	$	101,859

As of March 31, 2023, there was $0.7 million of amounts receivable included in our condensed consolidated balance sheets as prepaid expenses and other current assets, which consisted of $0.6 million of accrued interest receivable and $0.1 million of amount receivable on matured investment. As of December 31, 2022, there was $0.6 million of accrued interest receivable and $5.1 million of amount receivable on matured investment.