XML 23 R9.htm IDEA: XBRL DOCUMENT v3.23.3
Fair Value Measurement
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurement

Note 3. Fair Value Measurement

 

The following tables summarize the Company’s financial assets and liabilities that are measured at fair value on a recurring basis (in thousands):

 

 

 

As of September 30, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds(1)

 

$

28,622

 

 

$

—

 

 

$

—

 

 

$

28,622

 

Commercial paper (2)

 

 

—

 

 

 

2,991

 

 

 

—

 

 

 

2,991

 

Government bonds

 

 

—

 

 

 

7,964

 

 

 

—

 

 

 

7,964

 

Total financial assets measured at fair value

 

$

28,622

 

 

$

10,955

 

 

$

—

 

 

$

39,577

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities(3):

 

 

 

 

 

 

 

 

 

 

 

 

Public Warrants

 

$

112

 

 

$

—

 

 

$

—

 

 

$

112

 

PIPE Warrants

 

 

—

 

 

 

131

 

 

 

—

 

 

 

131

 

Total financial liabilities measured at fair value

 

$

112

 

 

$

131

 

 

$

—

 

 

$

243

 

 

 

 

 

As of December 31, 2022

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds(1)

 

$

9,194

 

 

$

—

 

 

$

—

 

 

$

9,194

 

Commercial paper

 

 

—

 

 

 

22,549

 

 

 

—

 

 

 

22,549

 

Corporate bonds

 

 

—

 

 

 

10,797

 

 

 

—

 

 

 

10,797

 

Government bonds

 

 

—

 

 

 

17,802

 

 

 

—

 

 

 

17,802

 

Government agency debt securities(1)

 

 

—

 

 

 

3,982

 

 

 

—

 

 

 

3,982

 

Total financial assets measured at fair value

 

$

9,194

 

 

$

55,130

 

 

$

—

 

 

$

64,324

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities(3):

 

 

 

 

 

 

 

 

 

 

 

 

Public Warrants

 

$

151

 

 

$

—

 

 

$

—

 

 

$

151

 

PIPE Warrants

 

 

—

 

 

 

175

 

 

 

—

 

 

 

175

 

Total financial liabilities measured at fair value

 

$

151

 

 

$

175

 

 

$

—

 

 

$

326

 

 

 

(1)
Included in cash and cash equivalents on the condensed consolidated balance sheet.
(2)
Consists of $1.5 million in cash and cash equivalents and $1.5 million in short-term marketable securities.
(3)
See Note 10.

There were no changes to the valuation methods utilized and there were no transfers of financial instruments between Level 1, Level 2, and Level 3 during the nine months ended September 30, 2023.

 

Commercial paper, corporate bonds, government bonds and government agency debt securities are classified as Level 2 as they were valued based upon quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets.

 

The Public Warrants are classified as Level 1 due to the use of an observable market quote in an active market. The PIPE Warrants are classified as Level 2 due to the use of observable market data for identical or similar liabilities. The fair value of each PIPE Warrant was determined to be equivalent to that of a Public Warrant because the PIPE Warrants are also subject to the make-whole redemption feature, which allows the Company to redeem both types of warrants on similar terms when the stock price is in the range of $10 to $18 per share.

 

The following tables provide the Company’s marketable securities by security type (in thousands):

 

 

 

As of September 30, 2023

 

 

 

Amortized Cost

 

 

Gross Unrealized Gains

 

 

Gross Unrealized Losses

 

 

Fair Value

 

Commercial paper

 

$

1,493

 

 

$

—

 

 

$

—

 

 

$

1,493

 

Government bonds

 

 

7,963

 

 

 

1

 

 

 

—

 

 

 

7,964

 

Total short-term marketable securities

 

$

9,456

 

 

$

1

 

 

$

—

 

 

$

9,457

 

 

 

 

As of December 31, 2022

 

 

 

Amortized Cost

 

 

Gross Unrealized Gains

 

 

Gross Unrealized Losses

 

 

Fair Value

 

Commercial paper

 

$

22,549

 

 

$

—

 

 

$

—

 

 

$

22,549

 

Corporate bonds

 

 

10,817

 

 

 

1

 

 

 

(21

)

 

 

10,797

 

Government bonds

 

 

18,023

 

 

 

—

 

 

 

(221

)

 

 

17,802

 

Total short-term marketable securities

 

$

51,389

 

 

$

1

 

 

$

(242

)

 

$

51,148

 

 

The following table indicates the length of the time that individual securities have been in a continuous unrealized loss position (dollars in thousands):

 

 

 

As of December 31, 2022

 

 

 

 

 

 

Less Than 12 Months

 

 

 

Number of Investments

 

 

Fair Value

 

 

Unrealized Losses

 

Corporate bonds

 

 

4

 

 

$

9,719

 

 

$

21

 

Government bonds

 

 

3

 

 

 

17,802

 

 

 

221

 

Total

 

 

7

 

 

$

27,521

 

 

$

242

 

 

As of September 30, 2023 and December 31, 2022, all short-term marketable securities had maturities of one year or less. There have been no significant realized gains or losses on the marketable securities during the three and nine months ended September 30, 2023 and 2022. The Company periodically reviews the available-for-sale investments for credit losses. All investments with unrealized losses have been in a loss position for less than 12 months. The Company determined that the unrealized loss was primarily attributed to changes in current market interest rates and not to credit quality. The Company does not intend to sell the marketable securities that are in an unrealized loss position, nor is it more likely than not that the Company is required to sell the marketable securities before the recovery of the amortized cost basis, which may be at maturity. As of September 30, 2023, there were no securities in an unrealized loss position.