Investments

3 Months Ended

Mar. 31, 2024

2. 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 prepaid expenses and other current assets in the condensed consolidated balance sheets. Available-for-sale investments are subsequently measured at fair value with realized gains and losses reported in other income (expense) in the condensed consolidated statements of operations. Unrealized holding gains and losses are excluded from earnings and reported in other comprehensive income (loss) until realized. The Company determines the fair value of its available-for-sale investments using level 3 inputs and evaluates the fair value of its investment in Thirona by applying a scenario based method. For the three months ended March 31, 2023, the Company recognized $0.1 million of interest income on investment. No interest income on investment was recognized during the three months ended March 31, 2024. The Company's investment in Thirona is comprised of two notes with aggregate face value of $8.0 million and stated interest rate of 6%. As of March 31, 2024 and December 31, 2023, the fair value of the Company's investment in Thirona was $6.9 million. No gains or losses from credit risk or unrealized holding gains or losses were recognized during the three months ended March 31, 2024 or 2023.

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 in the condensed consolidated statements of operations as interest income, which was approximately $3.4 million and $1.2 million for the three months ended March 31, 2024 and 2023, respectively. No allowance for credit losses on held-to-maturity securities was required as of March 31, 2024 or December 31, 2023.

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


	March 31, 2024				December 31, 2023
	Amortized Cost Basis		Aggregate Fair Value		Amortized Cost Basis		Aggregate Fair Value
Due in one year or less(1)	$	241,962	$	241,970	$	115,263	$	115,374
Due after one year through five years		3,726		3,771		7,155		7,197
Total	$	245,688	$	245,741	$	122,418	$	122,571

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(1)

The investments due in one year or less include cash equivalents of $134.5 million as of March 31, 2024 and $58.6 million as of December 31, 2023.

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


	March 31, 2024
	Investment Level	Amortized Cost (Carrying Value)			Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Money market funds and other	Level 1	$	95,389		$	—	$	—		$	95,389
Commercial bonds and paper	Level 2		51,485			93		(71	)		51,507
U.S. Treasury Securities	Level 2		98,814			56		(25	)		98,845
Total cash equivalents and investments			245,688			149		(96	)		245,741
Less: cash equivalents			(134,505	)		—		—			(134,505	)
Total Investments		$	111,183		$	149	$	(96	)	$	111,236


	December 31, 2023
	Investment Level	Amortized Cost (Carrying Value)			Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Money market funds	Level 1	$	69,611		$	—	$	—		$	69,611
Commercial bonds and paper	Level 2		43,251			135		(38	)		43,348
U.S. Treasury Securities	Level 2		9,556			56		—			9,612
Total cash equivalents and investments			122,418			191		(38	)		122,571
Less: cash equivalents			(58,644	)		—		—			(58,644	)
Total Investments		$	63,774		$	191	$	(38	)	$	63,927

As of March 31, 2024 and December 31, 2023, there was $0.6 million and $0.5 million, respectively, of accrued interest receivable on investments which is included in prepaid expense and other current assets in our condensed consolidated balance sheets.