XML 22 R11.htm IDEA: XBRL DOCUMENT

Fair Value Measurements

6 Months Ended

Jun. 30, 2023

Fair Value Measurements

Fair Value Measurements

4. Fair Value Measurements

The Company determines the fair value of financial and non-financial assets and liabilities using the fair value hierarchy which establishes three levels of inputs that may be used to measure fair value, as follows:

Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities;

Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

Level 3—Unobservable inputs which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.

Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a

particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability.

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine such fair values (in thousands):



		JUNE 30,												DECEMBER 31,
		2023												2022
		LEVEL 1			LEVEL 2			LEVEL 3			TOTAL			LEVEL 1			LEVEL 2			LEVEL 3			TOTAL
Money market funds		$	25,592		$	—		$	—		$	25,592		$	18,994		$	—		$	—		$	18,994
Commercial paper			—			9,975			—			9,975			—			—			—			—
Cash equivalents			25,592			9,975			—			35,567			18,994			—			—			18,994

U.S. government bonds			43,269			—			—			43,269			11,763			—			—			11,763
U.S. government agency bonds			—			33,846			—			33,846			—			1,794			—			1,794
Corporate debt securities			—			106,881			—			106,881			—			51,193			—			51,193
Short-term investments			43,269			140,727			—			183,996			11,763			52,987			—			64,750
Total fair value of financial assets		$	68,861		$	150,702		$	—		$	219,563		$	30,757		$	52,987		$	—		$	83,744



		JUNE 30,												DECEMBER 31,
		2023												2022
			AMORTIZED		GROSS UNREALIZED						FAIR				AMORTIZED		GROSS UNREALIZED						FAIR
		COST			LOSSES			GAINS			VALUE			COST			LOSSES			GAINS			VALUE
Money market funds		$	25,592		$	—		$	—		$	25,592		$	18,994		$	—		$	—		$	18,994
Commercial paper			9,970			—			5			9,975			—			—			—			—
Cash equivalents			35,562			—			5			35,567			18,994			—			—			18,994

U.S. government bonds			43,433			(164)			—			43,269			11,820			(57)			—			11,763
U.S. government agency bonds			33,914			(77)			9			33,846			1,801			(7)			—			1,794
Corporate debt securities			107,044			(166)			3			106,881			51,239			(49)			3			51,193
Short-term investments			184,391			(407)			12			183,996			64,860			(113)			3			64,750
Total fair value of financial assets		$	219,953		$	(407)		$	17		$	219,563		$	83,854		$	(113)		$	3		$	83,744

As of June 30, 2023 and December 31, 2022, the Company did not have any liabilities measured at fair value on a recurring basis. There were no transfers in and out of Level 3 during the three and six months ended June 30, 2023 and 2022.

The unrealized losses for marketable securities related to changes in interest rates and the Company has the intent and ability to hold the underlying securities until the estimated date of recovery of its amortized cost. No allowance for credit losses was recorded as of June 30, 2023 and December 31, 2022, and no impairment losses were recognized for the three and six months ended June 30, 2023 and 2022.

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.

+ References + Details