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Fair Value Measurements and Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 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 fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements 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.
Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability.
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 (in thousands):
December 31, 2023
Amortized
Cost Basis		Unrealized
Gains		Unrealized
Losses		Estimated
Fair Value
Level 1
Money market funds$10,204 $— $— $10,204 
Level 2
Commercial paper64,693 — (35)64,658 
U.S. government and agency securities17,616 4 (17)17,603 
Total cash equivalents and short-term investments92,513 4 (52)92,465 
Less: Cash equivalents(70,972)— 33 (70,939)
Total short-term investments$21,541 $4 $(19)$21,526 
December 31, 2022
Amortized
Cost Basis		Unrealized
Gains		Unrealized
Losses		Estimated
Fair Value
Level 1
Money market funds$10,235 $— $— $10,235 
Level 2
U.S. government and agency securities59,487 — (824)58,663 
Commercial paper102,722 — (246)102,476 
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 the Company may sell these securities at any time for use in current operations even if the securities have not yet reached maturity, all marketable securities are classified as current assets in the Company’s consolidated balance sheets. As of December 31, 2023, all marketable securities had a remaining maturity of less than one year. The Company held 19 debt securities in an unrealized loss position with an aggregate fair value at December 31, 2023 of $71.3 million. These are highly liquid funds with high credit ratings with final maturity of less than one year from the balance sheet date. There were no individual securities that were in a significant unrealized loss position as of December 31, 2023 and 2022. The Company has not recorded an allowance for credit losses as of December 31, 2023 and 2022 related to these securities. The accrued interest receivable on available-for-sale marketable securities was immaterial at December 31, 2023 or 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.
During the years ended December 31, 2023 and 2022, the Company performed an impairment test to measure certain laboratory equipment at fair value. The assets are measured at fair value using Level 3 inputs on a non-recurring basis as a result of the occurrence of certain triggering events indicating the carrying value of the assets may not be recoverable.
The analysis was based on a market price in a secondary market place for similar laboratory equipment. The fair value of the assets was lower than the carrying value and as such impairment charges of $0.2 million and $2.1 million were recognized for the years ended December 31, 2023 and 2022, respectively. The assets indicated as impaired were written down to their estimated fair value.
The fair value of the assets was nil and $0.2 million at December 31, 2023 and 2022.