v3.24.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements

3. Fair Value Measurements

Fair value accounting is applied for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Financial instruments include cash and cash equivalents, marketable securities, accounts payable and accrued expenses that approximate fair value due to their relatively short maturities.

Assets and liabilities recorded at fair value on a recurring basis in the balance sheet are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows:

Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 2—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities 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 related assets or liabilities; and

Level 3—Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.

The Company estimates the fair values of investments in corporate debt securities, commercial paper and U.S. government agency securities using 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.

Cash equivalents and marketable securities, all of which are classified as available-for-sale securities and measured at fair value on a recurring basis, consisted of the following (in thousands):

 

 

 

 

 

As of September 30, 2024

 

 

 

Fair Value
Hierarchy
Level

 

Amortized
Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Fair
Value

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

4,367

 

 

$

—

 

 

$

—

 

 

$

4,367

 

Corporate debt

 

Level 2

 

 

19,571

 

 

 

50

 

 

 

—

 

 

 

19,621

 

Asset-backed securities

 

Level 2

 

 

3,714

 

 

 

8

 

 

 

—

 

 

 

3,722

 

Commercial paper

 

Level 2

 

 

17,453

 

 

 

—

 

 

 

—

 

 

 

17,453

 

U.S. government agency securities

 

Level 2

 

 

52,564

 

 

 

51

 

 

 

(2

)

 

 

52,613

 

Subtotal

 

 

 

 

97,669

 

 

 

109

 

 

 

(2

)

 

 

97,776

 

Less: Cash equivalents

 

 

 

 

(37,771

)

 

 

—

 

 

 

—

 

 

 

(37,771

)

Marketable securities

 

 

 

$

59,898

 

 

$

109

 

 

$

(2

)

 

$

60,005

 

 

 

 

 

 

As of December 31, 2023

 

 

 

Fair Value
Hierarchy
Level

 

Amortized
Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

10,869

 

 

$

—

 

 

$

—

 

 

$

10,869

 

Corporate debt

 

Level 2

 

 

19,531

 

 

 

37

 

 

 

(9

)

 

 

19,559

 

Asset-backed securities

 

Level 2

 

 

5,242

 

 

 

7

 

 

 

(4

)

 

 

5,245

 

Commercial paper

 

Level 2

 

 

59,828

 

 

 

7

 

 

 

(8

)

 

 

59,827

 

U.S. government agency securities

 

Level 2

 

 

63,206

 

 

 

91

 

 

 

(18

)

 

 

63,279

 

Subtotal

 

 

 

 

158,676

 

 

 

142

 

 

 

(39

)

 

 

158,779

 

Less: Cash equivalents

 

 

 

 

(47,395

)

 

 

—

 

 

 

—

 

 

 

(47,395

)

Marketable securities

 

 

 

$

111,281

 

 

$

142

 

 

$

(39

)

 

$

111,384

 

 

As of September 30, 2024, the unrealized losses on the Company’s securities that were in an unrealized loss position were caused by interest rate changes and were not attributable to credit losses. As of September 30, 2024, the Company held marketable securities with an aggregate unrealized loss position of $2,000 that had an aggregate fair value of $2.0 million. The Company does not intend to sell the securities that are in an unrealized loss position and the Company believes it is more likely than not that the investments will be held until recovery of the amortized cost bases. The Company did not record an allowance for credit losses or other impairment charges related to its marketable securities as of September 30, 2024.

The following table presents the remaining contractual maturities of the Company’s marketable securities as of September 30, 2024 (in thousands):

September 30, 2024

 

Maturing in one year or less

$

60,005

 

Maturing after one year through five years

 

—

 

Total

$

60,005