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Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2024
Fair Value of Financial Instruments  
Fair Value of Financial Instruments

5. Fair Value of Financial Instruments

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Fair value measurements and disclosures describe the fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, as follows:

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Level 1 inputs:

Quoted prices (unadjusted) in active markets for identical assets or liabilities. An active market is defined as a market where transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 inputs:

Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.

Level 3 inputs:

Unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability.

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The Company invests in instruments within defined credit parameters to minimize credit risk while ensuring liquidity.

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There were no transfers between Levels 1, 2, and 3 during the six months ended June 30, 2024 and 2023.

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The following table presents the Company’s financial instruments carried at fair value using the lowest level input applicable to each financial instrument as of June 30, 2024 and December 31, 2023:

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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Significant

​

​

​

​

​

​

​

​

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Quoted Prices

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​

other

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Significant

​

​

​

​

​

​

in active

​

​

observable

​

​

unobservable

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​

​

​

​

​

markets

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​

inputs

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​

inputs

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Total

    

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(Level 1)

    

​

(Level 2)

    

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(Level 3)

June 30, 2024

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​

​

​

​

​

​

​

​

​

​

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Cash equivalents:

​

​

​

​

​

​

​

​

​

​

​

​

Money market funds

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$

21,208

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$

21,208

​

$

—

​

$

—

Commercial paper

​

​

997

​

​

—

​

​

997

​

​

—

Marketable securities:

​

​

​

​

​

​

​

​

​

​

​

​

Corporate debt securities

​

​

62,428

​

​

—

​

​

62,428

​

​

—

U.S. Treasury securities

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​

22,935

​

​

—

​

​

22,935

​

​

—

Government-sponsored securities

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​

7,491

​

​

—

​

​

7,491

​

​

—

Commercial paper

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​

5,883

​

​

—

​

​

5,883

​

​

—

Total assets measured at fair value

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$

120,942

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$

21,208

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$

99,734

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

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​

​

​

​

​

​

​

​

​

​

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Cash equivalents:

​

​

​

​

​

​

​

​

​

​

​

​

Money market funds

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$

77,299

​

$

77,299

​

$

—

​

$

—

U.S. Treasury securities

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​

4,729

​

​

—

​

​

4,729

​

​

—

Marketable securities:

​

​

​

​

​

​

​

​

​

​

​

​

Corporate debt securities

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​

41,612

​

​

—

​

​

41,612

​

​

—

U.S. Treasury securities

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​

25,468

​

​

—

​

​

25,468

​

​

—

Government-sponsored securities

​

​

4,521

​

​

—

​

​

4,521

​

​

—

Total assets measured at fair value

​

$

153,629

​

$

77,299

​

$

76,330

​

$

—

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The Company’s cash equivalents, which consist of money market funds, are measured at fair value on a recurring basis using quoted market prices. Accordingly, these securities are categorized as Level 1.

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Assets and Liabilities Not Carried at Fair Value

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The Company’s convertible senior notes fall into the Level 2 category within the fair value level hierarchy. The fair value was determined based on data points other than quoted prices that are observable, either directly or indirectly, such as broker quotes in a non-active market. As of June 30, 2024, the fair value of the Company's 2.875% convertible senior notes due in 2029 was $269,652 and the net carrying value was $236,650.

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The Company’s term notes fall into the Level 2 category within the fair value level hierarchy and the fair value was determined using quoted prices for similar liabilities in active markets, as well as inputs that are observable for the liability (other than quoted prices), such as interest rates that are observable at commonly quoted intervals. As of June 30, 2024, the carrying amount of the term notes reasonably approximated the estimated fair value.

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As of June 30, 2024, and December 31, 2023, the carrying amounts of cash and cash equivalents, accounts receivable, inventory, prepaid expenses and other current assets, accounts payable, accrued liabilities, and accrued rebates, returns and discounts reasonably approximated their estimated fair values.