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Fair Value Measurements and Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Fair Value of Financial Instruments Fair Value Measurements and Fair Value of Financial Instruments
The authoritative guidance on the fair value hierarchy for disclosure of fair value measurements is as follows:
Level 1:    Quoted prices in active markets for identical assets or liabilities.
Level 2:    Observable inputs other than Level 1 prices, 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 and that are significant to the fair value of the assets or liabilities.
The fair value of Level 1 securities is determined using quoted prices in active markets for identical assets. Level 1 securities consist of highly liquid money market funds. Financial assets and liabilities are considered Level 2 when their fair values are determined using inputs that are observable in the market or can be derived principally from or corroborated by observable market data such as pricing for similar securities, recently executed transactions, cash flow models with yield curves, and benchmark securities. In addition, Level 2 financial instruments are valued using comparisons to like-kind financial instruments and models that use readily observable market data as their basis. U.S. government and agency securities, commercial paper, and corporate bonds are valued primarily using market prices of comparable securities, bid/ask quotes, interest rate yields and prepayment spreads and are included in Level 2.
The following is a summary of the Company’s cash equivalents and short-term investments:
June 30, 2023
Amortized
Cost Basis
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
(In thousands)
Level 1:
Money market funds
$10,541 $— $— $10,541 
Level 2:
Commercial paper
101,677 — (27)101,650 
U.S. government and agency securities
24,418 2 (143)24,277 
Total cash equivalents and short-term investments136,636 2 (170)136,468 
Less: cash equivalents
(106,218)(2)18 (106,202)
Total short-term investments$30,418 $— $(152)$30,266 
December 31, 2022
Amortized
Cost Basis
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
(In thousands)
Level 1:
Money market funds$10,235 $— $— $10,235 
Level 2:
Commercial paper102,722 — (246)102,476 
U.S. government and agency securities59,487 — (824)58,663 
Corporate bonds2,059 — (35)2,024 
Total cash equivalents and short-term investments174,503 — (1,105)173,398 
Less: cash equivalents(56,256)— 16 (56,240)
Total short-term investments$118,247 $— $(1,089)$117,158 
As of June 30, 2023, all marketable securities have a remaining maturity of less than one year. The aggregate fair value of debt securities in an unrealized loss position at June 30, 2023 and December 31, 2022 was $116.0 million and $155.5 million, respectively, which are highly liquid funds with high credit ratings that have final maturity of less than two years from date of purchase. The Company has not recorded an allowance for credit losses as of June 30, 2023 and December 31, 2022 related to these securities. The accrued interest receivable on available-for-sale marketable securities was immaterial at June 30, 2023 and December 31, 2022. The Company held 27 securities that were in unrealized loss positions as of June 30, 2023. There were no individual securities that were in a significant unrealized loss position as of June 30, 2023 and December 31, 2022. The Company regularly reviews the securities in an unrealized loss position and evaluates the current expected credit loss by considering factors such as historical experience, market data, issuer-specific factors, and current economic conditions. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. The Company has not recorded any impairment charges on available-for-sale securities.