Investments

12 Months Ended

Dec. 31, 2024

4. 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 Investments Portfolio —The Company's investments portfolio consists of highly liquid money market funds, commercial bonds and paper, and U.S. Treasury securities (collectively, the "Investments") for which the Company has historically accounted as held-to-maturity. Effective October 1, 2024, the Company has reclassified its held-to-maturity investments to available-for-sale to align with potential business needs. Cumulative unrealized gains were recorded in other comprehensive income.

The amortized cost basis, net unrealized gains transferred to accumulated other comprehensive income, and resulting fair market value of the Investments as of the October 1, 2024 reclassification date were as follows (in thousands):


	October 1, 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	$	31,298		$	—	$	—		$	31,298
Commercial bonds and paper	Level 2		57,477			268		(12	)		57,733
U.S. Treasury Securities	Level 2		158,818			700		(2	)		159,516
Total cash equivalents and investments			247,593			968		(14	)		248,547
Less: cash equivalents			(41,582	)		—		—			(41,582	)
Total Investments		$	206,011		$	968	$	(14	)	$	206,965

The contractual maturities of the Investments are summarized below (in thousands):


	December 31, 2024				December 31, 2023
	Available-for-Sale Investments				Held-to-Maturity Investments
	Amortized Cost Basis		Aggregate Fair Value		Amortized Cost Basis		Aggregate Fair Value
Due in one year or less(1)	$	165,466	$	165,662	$	115,263	$	115,374
Due after one year through five years		5,498		5,482		7,155		7,197
Total	$	170,964	$	171,144	$	122,418	$	122,571

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(1)

The investments due in one year or less include cash equivalents of $14.7 million as of December 31, 2024 and $58.6 million as of December 31, 2023.

The fair values of the Investments are disclosed below (in thousands):


	December 31, 2024
Available-for-Sale Investments	Investment Level	Amortized Cost (Carrying Value)			Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Money market funds and other	Level 1	$	14,745		$	—	$	—		$	14,745
Commercial bonds and paper	Level 2		44,145			49		(24	)		44,170
U.S. Treasury Securities	Level 2		112,074			184		(29	)		112,229
Total cash equivalents and investments			170,964			233		(53	)		171,144
Less: cash equivalents			(14,745	)		—		—			(14,745	)
Total Investments		$	156,219		$	233	$	(53	)	$	156,399


	December 31, 2023
Held-to-Maturity Investments	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

The accretion of the Investments, net of amortization, was recognized as interest income in the consolidated statements of operations and was approximately $7.3 million, $1.6 million, and $0.7 million for the years ended December 31, 2024, 2023, and 2022, respectively. As of December 31, 2024 and 2023, there was $1.0 million and $0.5 million, respectively, of accrued interest receivable on the Investments included in prepaid expense and other current assets in the Company's consolidated balance sheets. No allowance for credit losses on the Investments was required as of December 31, 2024 or 2023.

Available-for-Sale Investment – Thirona — In June 2021, the Company purchased a $3.0 million convertible promissory note issued by Thirona. In January 2022, the Company purchased an additional $5.0 million convertible promissory note issued by Thirona (the "Thirona convertible notes"). The Thirona convertible notes are general unsecured obligations of Thirona and initially accrued interest at a rate of 6% per annum. Unless earlier converted into conversion shares pursuant to the note purchase agreement, the aggregate principal of $8.0 million and accrued interest shall be due and payable by Thirona on demand by the Company at any time after the maturity date. The Thirona convertible notes were amended in February 2023 to extend the maturity date from December 31, 2022 to June 30, 2024, and again on June 27, 2024 to extend the maturity date to June 30, 2026 and increase the interest rate to 10% per annum. The Thirona convertible notes were included in other assets as of December 31, 2024 and prepaid expenses and other current assets as of December 31, 2023 in the consolidated balance sheets.

The Company evaluates the fair value of its investment in Thirona by applying a scenario based model with hypothetical yield of 28.0% and 35.0%, and volatility of 70.0% and 90.0% at December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the fair value of the Company's investment in Thirona was $6.3 million and $6.9 million, respectively. For the year ended December 31, 2024, the Company recorded an unrealized holding gain of $0.9 million. Additionally, for the year ended December 31, 2024, the Company recognized a loss of $1.6 million on its investment in Thirona as a result of modification of the Thirona convertible notes. For the years ended December 31, 2023 and 2022, the Company determined that there were credit losses on the investment of $0.2 million and $0.9 million, respectively, which were recognized in the consolidated statements of operations. No unrealized holding gains or losses were recognized in accumulated other comprehensive income (loss) during the years ended December 31, 2023 or 2022. No interest income on the Company's investment in Thirona was recognized for the year ended December 31, 2024. For each of the years ended December 31, 2023 and 2022, the Company recognized $0.5 million of interest income on investment.