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Note 4 - Investments and Fair-Value Measurements
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

Note 4—Investments and Fair-Value Measurements

 

All of our investments are held in our name and are classified as short-term and held-to-maturity on the accompanying condensed consolidated balance sheets. Interest income is included as a component of other income on our condensed consolidated statement of operations and comprehensive loss. Interest and other income for the three months ended September 30, 2024 and September 30, 2023 consists primarily of interest earned of $1.8 million and $4.0 million, respectively. Interest and other income for the nine months ended September 30, 2024 and September 30, 2023 consists primarily of interest earned of $7.1 million and $11.7 million, respectively.

 

The following tables summarize our investments:

 

​

  

September 30, 2024

  

​

          

Gross Unrealized

          
   

Amortized Cost

    

Gains/(Losses)

    

Estimated Fair Value

  

​

  

(In thousands)

  

​

  

​

    

​

    

​

  

U.S. government securities classified as short-term investments

   $ 19,924     $ 4     $ 19,928  

Money-market funds classified as short-term investments

     101,712       —       101,712  

Total short-term investments

     121,636       4       121,640  

Certificate of deposit classified as non-current restricted investments

     1,054       —       1,054  

Total investments

   $ 122,690     $ 4     $ 122,694  

 

​

  

December 31, 2023

  

​

          

Gross Unrealized

          
   

Amortized Cost

    

Gains/(Losses)

    

Estimated Fair Value

  

​

  

(In thousands)

  

​

  

​

    

​

    

​

  

U.S. government securities classified as short-term investments

   $ 102,100     $ 19     $ 102,119  

Money-market funds classified as short-term investments

     62,643       —       62,643  

Total short-term investments

     164,743       19       164,762  

Certificate of deposit classified as non-current restricted investments

     1,054       —       1,054  

Total investments

   $ 165,797     $ 19     $ 165,816  

 

Fair value is defined 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. The accounting standard establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required:

 

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

 

Level 2—Inputs other than quoted prices in active markets that are either directly or indirectly observable; and

 

Level 3—Unobservable inputs in which little or no market data exists, therefore they are developed using estimates and assumptions developed by us, which reflect those that a market participant would use.

 

Our fair value hierarchy for our financial assets and liabilities are as follows:

 

​

  

September 30, 2024

  

​

  

Level 1

    

Level 2

    

Level 3

    

Total

  

​

  

(In thousands)

  

Assets:

  

​

    

​

    

​

    

​

  

U.S. government securities classified as short-term investments

   $ —     $ 19,928     $ —     $ 19,928  

Money-market funds classified as short-term investments

     101,712       —       —       101,712  

Total short-term investments

     101,712       19,928       —       121,640  

Certificate of deposit classified as non-current restricted investments

     1,054       —       —       1,054  

Total investments

   $ 102,766     $ 19,928     $ —     $ 122,694  

 

​

  

December 31, 2023

  

​

  

Level 1

    

Level 2

    

Level 3

    

Total

  

​

  

(In thousands)

  

Assets:

  

​

    

​

    

​

    

​

  

U.S. government securities classified as short-term investments

   $ —     $ 102,119     $ —     $ 102,119  

Money-market funds classified as short-term investments

     62,643       —       —       62,643  

Total short-term investments

     62,643       102,119       —       164,762  

Certificate of deposit classified as non-current restricted investments

     1,054       —       —       1,054  

Total investments

   $ 63,697     $ 102,119     $ —     $ 165,816  

 

Cash held in demand deposit accounts of $1.5 million and $7.1 million is excluded from our fair-value hierarchy disclosure as of September 30, 2024 and December 31, 2023, respectively. The carrying amounts reported in the accompanying condensed consolidated balance sheets for receivables, accounts payable and accrued liabilities, and other current monetary assets and liabilities approximate fair value.

 

See “Note 6 — Debt” and “Note 8 — OMIDRIA Royalty Obligation” for the carrying amount and estimated fair value of our outstanding term loan, convertible senior notes and the OMIDRIA royalty obligation.