FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

12 Months Ended

Sep. 30, 2024

Dec. 31, 2023

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

(3)

FAIR VALUE OF FINANCIAL INSTRUMENTS

The following tables summarize the Company’s financial assets measured at fair value on a recurring basis and their respective input levels based on the fair value hierarchy (in thousands):


					Fair Value Measurements Using
					Quoted Prices in
					Active Markets			Significant Other			Significant
					for Identical			Observable			Unobservable
		September 30,			Assets			Inputs			Inputs
		2024			(Level 1)			(Level 2)			(level 3)
Assets:
Cash equivalents
Money market funds		$	28,265		$	28,265		$	—		$	—
Total cash equivalents			28,265			28,265			—			—

Short-term investments
Agency bonds			27,168			—			27,168			—
Corporate debt securities			11,926			—			11,926			—
Commercial paper			9,443			—			9,443			—
U.S. Treasury bills			9,078			9,078			—			—
Total short-term investments			57,615			9,078			48,537			—

Total fair value of assets		$	85,880		$	37,343		$	48,537		$	—


					Fair Value Measurements Using
					Quoted Prices in
					Active Markets			Significant Other			Significant
					for Identical			Observable			Unobservable
		December 31,			Assets			Inputs			Inputs
		2023			(Level 1)			(Level 2)			(level 3)
Assets:
Cash equivalents
Money market funds		$	19,787		$	19,787		$	—		$	—
Total cash equivalents			19,787			19,787			—			—

Short-term investments
Agency bonds			42,255			—			42,255			—
Commercial paper			38,386			—			38,386			—
U.S. Treasury bills			10,362			10,362			—			—
Corporate debt securities			7,945			—			7,945			—
Total short-term investments			98,948			10,362			88,586			—

Total fair value of assets		$	118,735		$	30,149		$	88,586		$	—

Cash Equivalents and Short-Term Investments

Financial assets measured at fair value on a recurring basis consist of the Company’s cash equivalents and short-term investments. Cash equivalents consisted of money market funds and commercial paper, and short-term investments consisted of U.S. Treasury bills, agency bonds, corporate debt securities, and commercial paper. The Company obtains pricing information from its investment manager and generally determines the fair value of investment securities using standard observable inputs, including reported trades, broker/dealer quotes, and bids and/or offers.

The following tables summarize the Company’s short-term investments (in thousands):


				As of September 30, 2024
							Gross			Gross
				Amortized			unrealized			unrealized			Estimated fair
		Maturity		cost			gains			losses			value
Agency bonds		1 year or less			27,029			139			—			27,168
Corporate debt securities		1 year or less			11,866			60			—			11,926
Commercial paper		1 year or less			9,438			5			—			9,443
U.S. Treasury bills		1 year or less			9,058			20			—			9,078
				$	57,391		$	224		$	—		$	57,615


				As of December 31, 2023
							Gross			Gross
				Amortized			unrealized			unrealized			Estimated fair
		Maturity		cost			gains			losses			value
Agency bonds		2 years or less		$	42,090			179			(14)		$	42,255
Commercial paper		2 years or less			38,362			29			(5)			38,386
U.S. Treasury bills		2 years or less			10,334			31			(3)			10,362
Corporate debt securities		2 years or less			7,925			21			(1)			7,945
				$	98,711		$	260		$	(23)		$	98,948

The following tables summarize the Company’s short-term investments with unrealized losses for less than 12 months and 12 months or greater (in thousands):


		As of December 31, 2023
		Less than 12 months					12 months or Greater
				Unrealized						Unrealized			Total			Total Unrealized
		Fair Value		Losses			Fair Value			Losses			Fair Value			Losses
Commercial paper	$	6,042		$	(5)		$	—		$	—		$	6,042		$	(5)
Agency bonds		3,760			(6)			6,579			(8)			10,339			(14)
U.S. Treasury bills		488			(2)			1,007			(1)			1,495			(3)
Corporate debt securities		3,110			(1)			—			—			3,110			(1)
	$	13,400		$	(14)		$	7,586		$	(9)		$	20,986		$	(23)

The Company did not hold any short-term investments in a loss position as of September 30, 2024. The Company considers whether unrealized losses have resulted from a credit loss or other factors. The unrealized losses on the Company’s short-term investments as of December 31, 2023, were caused by fluctuations in market value and interest rates as a result of the economic environment and not credit risk. As of September 30, 2024 and December 31, 2023, no allowance for credit losses was recorded. During the nine months ended September 30, 2024, the Company did not recognize any impairment losses related to its short-term investments. It is neither management’s intention to sell nor is it more likely than not that the Company will be required to sell these investments prior to recovery of their cost basis or recovery of fair value. Unrealized gains and losses are included in accumulated other comprehensive gain (loss).

Accrued interest receivable is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected to default on payment. Accrued interest receivable related to short-term investments was $0.3 million as of September 30, 2024 and $0.6 million as of December 31, 2023.

(3)	FAIR VALUE OF FINANCIAL INSTRUMENTS

The following tables summarize the Company’s financial assets measured at fair value on a recurring basis and their respective input levels based on the fair value hierarchy (in thousands):


					Fair Value Measurements Using
					Quoted Prices in
					Active Markets			Significant Other			Significant
					for Identical			Observable			Unobservable
		December 31,			Assets			Inputs			Inputs
		2023			(Level 1)			(Level 2)			(level 3)
Assets:
Cash equivalents
Money market funds		$	19,787		$	19,787		$	—		$	—
Total cash equivalents			19,787			19,787			—			—

Short-term investments
Agency bonds			42,255			—			42,255			—
Commercial Paper			38,386			—			38,386			—
U.S. Treasury bills			10,362			10,362			—			—
Corporate debt securities			7,945			—			7,945			—
Total short-term investments			98,948			10,362			88,586			—

Total fair value of assets		$	118,735		$	30,149		$	88,586		$	—


					Fair Value Measurements Using
					Quoted Prices in
					Active Markets			Significant Other			Significant
					for Identical			Observable			Unobservable
		December 31,			Assets			Inputs			Inputs
		2022			(Level 1)			(Level 2)			(level 3)
Assets:
Cash equivalents
Money market funds		$	18,436		$	18,436		$	—		$	—
Total cash equivalents			18,436			18,436			—			—

Short-term investments
Commercial paper			55,577			—			55,577			—
U.S. Treasury bills			26,841			26,841			—			—
Agency Bonds			24,405			—			24,405			—
Total short-term investments			106,823			26,841			79,982			—

Total fair value of assets		$	125,259		$	45,277		$	79,982		$	—

Cash Equivalents and Short-Term Investments

Financial assets measured at fair value on a recurring basis consist of the Company’s cash equivalents and short-term investments. Cash equivalents consisted of cash, money market funds and commercial paper, and short-term investments consisted of U.S. Treasury bills, agency bonds, corporate debt securities and commercial paper. The Company obtains pricing information from its investment manager and generally determines the fair value of investment securities using standard observable inputs, including reported trades, broker/dealer quotes, and bids and/or offers.

The following tables summarize the Company’s short-term investments (in thousands):


				As of December 31, 2023
							Gross			Gross
				Amortized			unrealized			unrealized			Estimated fair
		Maturity		cost			gains			losses			value
Agency bonds		2 years or less			42,090			179			(14)			42,255
Commercial paper		2 years or less			38,362			29			(5)			38,386
U.S. Treasury bills		2 years or less			10,334			31			(3)			10,362
Corporate debt securities		2 years or less			7,925			21			(1)			7,945
				$	98,711		$	260		$	(23)		$	98,948


				As of December 31, 2022
							Gross			Gross
				Amortized			unrealized			unrealized			Estimated fair
		Maturity		cost			gains			losses			value
Commercial paper		1 year or less		$	55,645		$	16		$	(84)		$	55,577
U.S. Treasury bills		1 year or less			27,108			—			(267)			26,841
Agency bonds		2 years or less			24,536			2			(133)			24,405
				$	107,289		$	18		$	(484)		$	106,823

The following tables summarize the Company’s short-term investments with unrealized losses for less than 12 months and 12 months or greater:


	As of December 31, 2023
	Less than 12 months						12 months or Greater
				Unrealized						Unrealized			Total			Total Unrealized
	Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
Commercial paper	$	6,042		$	(5)		$	—		$	—		$	6,042		$	(5)
Agency bonds		3,760			(6)			6,579			(8)			10,339			(14)
U.S. Treasury bills		488			(2)			1,007			(1)			1,495			(3)
Corporate debt securities		3,110			(1)			—			—			3,110			(1)
	$	13,400		$	(14)		$	7,586		$	(9)		$	20,986		$	(23)


	As of December 31, 2022
	Less than 12 months						12 months or Greater
				Unrealized						Unrealized			Total			Total Unrealized
	Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
Commercial paper	$	34,928		$	(84)		$	—		$	—		$	34,928		$	(84)
U.S. Treasury bills		1,971			(6)			24,833			(261)			26,804			(267)
Agency bonds		22,964			(133)			—			—			22,964			(133)
	$	59,863		$	(223)		$	24,833		$	(261)		$	84,696		$	(484)

The Company considers whether unrealized losses have resulted from a credit loss or other factors. The unrealized losses on the Company’s available-for-sale securities as of December 31, 2023 were caused by fluctuations in market value and interest rates as a result of the economic environment and not credit risk. The Company concluded that an allowance for credit losses was unnecessary as of December 31, 2023. It is neither management’s intention to sell nor is it more likely than not that the Company will be required to sell these investments prior to recovery of their cost basis or recovery of fair value. Unrealized gains and losses are included in accumulated other comprehensive loss.

Accrued interest receivable is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected to default on payment. Accrued interest receivable related to short-term investments was $0.6 million and $0.3 million as of December 31, 2023 and December 31, 2022, respectively.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details