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Fair Value Measurement
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurement

3. Fair Value Measurement

The Company assesses the fair value of financial instruments based on the provisions of ASC 820, Fair Value Measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

•
Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.
•
Level 2 — Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, 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.
•
Level 3 — Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

 

 

 

 

September 30, 2024

 

(in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

 

8,670

 

 

$

 

—

 

 

$

 

—

 

 

$

 

8,670

 

Money market funds

 

 

 

27,319

 

 

 

 

—

 

 

 

 

—

 

 

 

 

27,319

 

Commercial paper

 

 

 

—

 

 

 

 

57,489

 

 

 

 

—

 

 

 

 

57,489

 

Corporate bonds

 

 

 

—

 

 

 

 

22,279

 

 

 

 

—

 

 

 

 

22,279

 

U.S. government treasury bills

 

 

 

82,627

 

 

 

 

—

 

 

 

 

—

 

 

 

 

82,627

 

Government-sponsored enterprise securities

 

 

 

—

 

 

 

 

16,480

 

 

 

 

—

 

 

 

 

16,480

 

Total

 

$

 

118,616

 

 

$

 

96,248

 

 

$

 

—

 

 

$

 

214,864

 

 

 

 

 

December 31, 2023

 

(in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

 

3,570

 

 

$

 

—

 

 

$

 

—

 

 

$

 

3,570

 

Money market funds

 

 

 

59,280

 

 

 

 

—

 

 

 

 

—

 

 

 

 

59,280

 

Commercial paper

 

 

 

—

 

 

 

 

105,017

 

 

 

 

—

 

 

 

 

105,017

 

Corporate bonds

 

 

 

 

 

 

 

12,627

 

 

 

 

 

 

 

 

12,627

 

U.S. government treasury bills

 

 

 

60,012

 

 

 

 

—

 

 

 

 

—

 

 

 

 

60,012

 

Government-sponsored enterprise securities

 

 

 

—

 

 

 

 

21,606

 

 

 

 

—

 

 

 

 

21,606

 

Total

 

$

 

122,862

 

 

$

 

139,250

 

 

$

 

—

 

 

$

 

262,112

 

 

 

 

September 30, 2024

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Estimated

 

(in thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

35,989

 

 

$

 

—

 

 

$

 

—

 

 

$

 

35,989

 

Short-term marketable securities (<12 months to maturity)

 

 

 

168,484

 

 

 

 

350

 

 

 

 

(1

)

 

 

 

168,833

 

Long-term marketable securities (>12 months to maturity)

 

 

 

9,927

 

 

 

 

115

 

 

 

 

—

 

 

 

 

10,042

 

Total

 

$

 

214,400

 

 

$

 

465

 

 

$

 

(1

)

 

$

 

214,864

 

 

 

 

December 31, 2023

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Estimated

 

(in thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

68,844

 

 

$

 

—

 

 

$

 

—

 

 

$

 

68,844

 

Short-term marketable securities (<12 months to maturity)

 

 

 

169,966

 

 

 

 

176

 

 

 

 

(8

)

 

 

 

170,134

 

Long-term marketable securities (>12 months to maturity)

 

 

 

22,955

 

 

 

 

179

 

 

 

 

—

 

 

 

 

23,134

 

Total

 

$

 

261,765

 

 

$

 

355

 

 

$

 

(8

)

 

$

 

262,112

 

 

The Company considers its marketable securities with maturities beyond one year as current assets, based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. The Company considers its investment portfolio of marketable securities to be available-for-sale.

The Company periodically reviews its available-for-sale marketable securities for other-than-temporary impairment. The Company considers factors such as the duration, severity and the reason for the decline in

value, the potential recovery period and its intent to sell. For debt securities, the Company also considers whether (i) it is more likely than not that the Company will be required to sell the debt securities before recovery of their amortized cost basis, and (ii) the amortized cost basis cannot be recovered as a result of credit losses.

There were no marketable securities that had been in a consecutive loss position for more than 12 months as of September 30, 2024. During the three and nine months ended September 30, 2024, the Company did not recognize any other-than-temporary impairment loss. As of September 30, 2024, there was no allowance for losses on available-for-sale debt securities attributable to credit risk.

As of September 30, 2024, all of the Company’s cash and cash equivalents consisted of cash on deposit with U.S. banks denominated in U. S. dollars and Australian dollars.