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Fair Value Measurements and Marketable Securities
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Marketable Securities
3.
Fair Value Measurements and Marketable Securities

Fair Value Measurements

The Company’s assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023 are measured in accordance with the standards of ASC 820, "Fair Value Measurements and Disclosures", which establishes a three-level valuation hierarchy for measuring fair value and expands financial statement disclosures about fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

 

Level – 1

Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

 

 

Level – 2

Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

 

 

Level – 3

Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company’s financial instruments consist primarily of cash, cash equivalents, marketable securities, accounts payable and accrued liabilities. For accounts payable and accrued liabilities, the carrying amounts of these financial instruments as of September 30, 2024 and December 31, 2023 were considered representative of their fair values due to their short term to maturity.

The following tables summarize the Company’s cash equivalents and marketable securities as of September 30, 2024 and December 31, 2023:

 

 

 

Total

 

 

Quoted
Prices in
Active
Markets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

 

(in thousands)

 

September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds invested in government securities

 

$

31,338

 

 

$

31,338

 

 

$

—

 

 

$

—

 

Total cash equivalents

 

 

31,338

 

 

 

31,338

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Bills

 

 

10,944

 

 

 

10,944

 

 

 

—

 

 

 

—

 

U.S. Government securities

 

 

157,696

 

 

 

—

 

 

 

157,696

 

 

 

—

 

Total marketable securities

 

 

168,640

 

 

 

10,944

 

 

 

157,696

 

 

 

—

 

Total cash equivalents and marketable securities

 

$

199,978

 

 

$

42,282

 

 

$

157,696

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds invested in government securities

 

$

24,701

 

 

$

24,701

 

 

$

—

 

 

$

—

 

Total cash equivalents

 

 

24,701

 

 

 

24,701

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Bills

 

 

17,334

 

 

 

17,334

 

 

 

—

 

 

 

—

 

U.S. Government securities

 

 

35,719

 

 

 

—

 

 

 

35,719

 

 

 

—

 

Corporate bonds

 

 

6,988

 

 

 

—

 

 

 

6,988

 

 

 

—

 

Total marketable securities

 

 

60,041

 

 

 

17,334

 

 

 

42,707

 

 

 

—

 

Total cash equivalents and marketable securities

 

$

84,742

 

 

$

42,035

 

 

$

42,707

 

 

$

—

 

The accrued interest receivable related to the Company’s investments was $0.9 million and $0.3 million as of September 30, 2024 and December 31, 2023, respectively, and is included in prepaid expenses and other current assets on the condensed consolidated balance sheet.

The Company classifies its money market funds and U.S. treasury bills, which are valued based on quoted market prices in active markets with no valuation adjustment, as Level 1 assets within the fair value hierarchy.

The Company classifies its investments in U.S. government and agency securities, corporate commercial paper, and corporate bonds, if any, as Level 2 assets within the fair value hierarchy. The fair values of these investments are estimated by taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income- and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities, prepayment/default projections based on historical data and other observable inputs.

As of September 30, 2024 and December 31, 2023, no allowances for credit losses for the Company’s investments were recorded. During the three and nine months ended September 30, 2024 and 2023, the Company did not recognize any impairment losses related to investments.

Marketable securities

The following table summarizes the Company's marketable securities as of September 30, 2024 and December 31, 2023.

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

 

 

(in thousands)

 

September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Bills

 

$

10,937

 

 

$

7

 

 

$

—

 

 

$

10,944

 

U.S. Government securities

 

 

157,345

 

 

 

351

 

 

 

—

 

 

 

157,696

 

Total marketable securities

 

$

168,282

 

 

$

358

 

 

$

—

 

 

$

168,640

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Bills

 

$

17,330

 

 

$

4

 

 

$

—

 

 

$

17,334

 

U.S. Government securities

 

 

35,653

 

 

 

66

 

 

 

—

 

 

 

35,719

 

Corporate bonds

 

 

6,977

 

 

 

11

 

 

 

—

 

 

 

6,988

 

Total marketable securities

 

$

59,960

 

 

$

81

 

 

$

—

 

 

$

60,041