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Fair Value of Financial Assets and Liabilities
12 Months Ended
Dec. 31, 2021
Fair Value of Financial Assets and Liabilities  
Fair Value of Financial Assets and Liabilities

3. Fair Value of Financial Assets and Liabilities

The following tables summarize the assets and liabilities measured at fair value on a recurring basis at December 31, 2021 and 2020 (in thousands):

Fair Value Measurements at December 31, 2021

    

Total

    

Level 1

    

Level 2

    

Level 3

Assets:

  

  

  

  

Money market funds, included in cash and cash equivalents

$

188,493

$

188,493

$

$

Marketable securities:

 

  

 

  

 

  

 

  

U.S. Treasury obligations

40,159

40,159

Total assets

$

228,652

$

228,652

$

$

Fair Value Measurements at December 31, 2020

    

Total

    

Level 1

    

Level 2

    

Level 3

Assets:

  

  

  

  

Money market funds, included in cash and cash equivalents

$

119,841

$

119,841

$

$

U.S. Treasury obligations, included in cash and cash equivalents

9,998

9,998

Marketable securities:

 

  

 

  

 

  

 

  

U.S. Treasury obligations

 

180,673

 

180,673

 

 

Total assets

$

310,512

$

310,512

$

$

Cash, cash equivalents and marketable securities are Level 1 assets and include investments in money market funds and U.S. government securities that are valued using quoted market prices. Accordingly, money market funds and government funds are categorized as Level 1 as of December 31, 2021 and 2020. There were no transfers of assets between fair value measurement levels during the years ended December 31, 2021 and 2020.

The carrying amounts reflected in the balance sheets for prepaid expenses and other current assets, accounts payable, and accrued expenses approximate their fair values at December 31, 2021 and 2020, due to their short-term nature.

The Company believes the terms of its debt reflect current market conditions for an instrument with similar terms and maturity, therefore the carrying value of the Company's debt approximates its fair value based on Level 3 of the fair value hierarchy.