Fair Value of Financial Instruments

3 Months Ended

12 Months Ended

Mar. 31, 2022

Dec. 31, 2021

4. Fair Value of Financial Instruments

The fair value of the Company’s financial assets by level within the fair value hierarchy were as follows (in thousands):


	March 31, 2022
	Level 1		Level 2		Level 3
Money market fund (cash equivalent)	$	124,509	$	—	$	—
Money market fund (long-term restricted cash)		199		—		—
Marketable securities:
Commercial paper		—		50,904		—
Corporate debt		—		14,797		—
U.S. government agency		—		15,061		—
Asset-backed securities		—		3,007		—

Total assets measured at fair value	$	124,708	$	83,769	$	—


	December 31, 2021
	Level 1		Level 2		Level 3
Money market fund (cash equivalent)	$	26,472	$	—	$	—
Money market fund (long-term restricted cash)		199		—		—
Marketable securities (1) :
Commercial paper		—		43,969		—
Corporate debt		—		17,072		—
U.S. government agency		—		5,053		—
Asset-backed securities		—		7,690		—

Total assets measured at fair value	$	26,671	$	73,784	$	—

(1)	These items have been reclassified to conform to current period presentation.

The fair value of financial assets categorized within Level 1 of the fair value hierarchy is determined by using unadjusted quoted prices that are available in active markets for identical assets and liabilities. The fair value of financial assets categorized within Level 2 of the fair value hierarchy is determined by using inputs other than Level 1 quoted prices that are directly or indirectly observable. Inputs can include quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets and liabilities in inactive markets. Related inputs can also include those used in valuation or other pricing models, such as interest rates and yield curves that can be corroborated by observable market data.

The Company did not transfer any assets measured at fair value on a recurring basis between levels during the three months ended March 31, 2022 or the year ended December 31, 2021.

4. Fair Value of Financial Instruments

The following table sets forth the fair value of the Company’s financial assets by level within the fair value hierarchy (in thousands):


	December 31, 2021
	Level 1		Level 2		Level 3
Assets
Money market fund (cash equivalent)	$	26,472	$	—	$	—
Money market fund (long-term restricted cash)		199		—		—
Marketable securities		—		73,784		—

Total assets measured at fair value	$	26,671	$	73,784	$	—


	December 31, 2020
	Level 1		Level 2		Level 3
Assets
Money market fund (long-term restricted cash)	$	199	$	—	$	—

Total assets measured at fair value	$	199	$	—	$	—

The Company did not transfer any assets measured at fair value on a recurring basis between levels during the years ended December 31, 2021 or 2020.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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