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Fair Value of Financial Assets and Liabilities
6 Months Ended
Jun. 30, 2023
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 June 30, 2023 and December 31, 2022 (in thousands):

Fair Value Measurements at June 30, 2023

    

Total

    

Level 1

    

Level 2

    

Level 3

Assets:

  

  

  

  

Money market funds, included in cash and cash equivalents

$

89,663

$

89,663

$

$

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

12,973

12,973

Marketable securities:

 

  

 

  

 

  

 

  

U.S. Treasury obligations

140,670

140,670

Total assets

$

243,306

$

243,306

$

$

Fair Value Measurements at December 31, 2022

    

Total

    

Level 1

    

Level 2

    

Level 3

Assets:

  

  

  

  

Money market funds, included in cash and cash equivalents

$

98,073

$

98,073

$

$

Marketable securities:

 

  

 

  

 

  

 

  

U.S. Treasury obligations

 

212,086

 

212,086

 

 

Total assets

$

310,159

$

310,159

$

$

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 June 30, 2023 and December 31, 2022. There were no transfers of assets between fair value measurement levels during the three and six months ended June 30, 2023 or 2022.

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 June 30, 2023 and December 31, 2022, 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.