Investments

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Note 3. Investments

During the three months ended June 30, 2024, the Company invested in a diversified portfolio of highly rated marketable debt securities, all of which are classified as available-for-sale. Available-for-sale securities with remaining maturities of greater than three months but less than one year and those identified by management at the time of purchase to be used to fund operations within one year are classified as short-term. All other available-for-sale securities are classified as long-term. Available-for-sale debt securities with readily determinable market values are recorded at fair value, and unrealized holding gains and temporary losses are recorded as a component of accumulated other comprehensive income (loss), net of related estimated tax.

The Company evaluates its available-for-sale debt securities for other-than-temporary impairment on a quarterly basis. When a decline in fair value is determined to be other-than-temporary, the cost of the investment is adjusted to fair value by recording a loss on investments in the condensed consolidated statements of operations and comprehensive loss. Gains and losses on investments are calculated on the basis of specific identification. The Company reviews several factors to determine whether a loss is other-than-temporary, such as the length and extent of the fair value decline, the financial condition and near-term prospects of the issuer, market conditions and trends and whether the Company has the intent to sell or will more likely than not be required to sell before the securities' anticipated recovery, which may be at maturity.

The following table summarizes the estimated fair value of available-for-sale debt securities included within short-term and long-term investments as of June 30, 2024 (in thousands):


	June 30, 2024
	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses		Accrued Interest Receivable		Aggregate Fair Value
Short-term investments
Corporate bonds	$	16,791	$	—	$	(8	)	$	—	$	134	$	16,917
U.S. Government obligations		14,729		—		(7	)		—		55		14,777
Total short-term investments	$	31,520	$	—	$	(15	)	$	—	$	189	$	31,694
Long-term investments
Corporate bonds	$	19,351	$	3	$	(8	)	$	—	$	203	$	19,549
U.S. Government obligations		3,625		1		—			—	28			3,654
Asset-backed Securities		3,549		1		(35	)		—	3			3,518
Total long-term investments	$	26,525	$	5	$	(43	)	$	—	$	234	$	26,721

The following table summarizes fair value of the Company's available-for-sale debt securities by remaining contractual maturity as of June 30, 2024 (in thousands):


Due within one year	$	31,694
Due after one year through five years		26,721
Total investments	$	58,415

As of June 30, 2024, approximately 28 out of approximately 35 investments in available-for-sale debt securities were in an unrealized loss position. The following table shows fair values and gross unrealized losses for available-for-sale debt securities that were in an unrealized loss position, for which an allowance for credit losses has not been recorded, as of June 30, 2024 (in thousands):


	June 30, 2024
	Less than 12 Months					12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Short-term investments
Corporate bonds	$	15,897	$	(8	)	$	—	$	—	$	15,897	$	(8	)
U.S. Government obligations		14,777		(7	)		—		—		14,777		(7	)
Total short-term investments	$	30,674	$	(15	)	$	—	$	—	$	30,674	$	(15	)
Long-term investments
Corporate bonds	$	14,677	$	(8	)	$	—	$	—	$	14,677	$	(8	)
U.S. Government obligations		292		—			—		—		292		—
Asset-backed Securities		2,327		(35	)		—		—		2,327		(35	)
Total long-term investments	$	17,296	$	(43	)	$	—	$	—	$	17,296	$	(43	)

Unrealized losses have not been recognized into loss as the Company neither intends to sell, nor anticipates that it is more likely than not that the Company will be required to sell, the securities before recovery of their amortized cost basis. The decline in fair value is due primarily to changes in market interest rates, rather than credit losses. Based on the evaluation of available evidence, the Company does not believe any unrealized losses represent other than temporary impairments.

During the three and six months ended June 30, 2024, the Company received $0.2 million from the sale of long-term investments. There have been no significant realized gains or losses on the sale of long-term investments during the three and six months ended June 30, 2024.