Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.23.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Financial instruments recorded at fair value in the financial statements are categorized as follows:
•Level 1: Observable inputs that reflect quoted prices for identical assets or liabilities in active markets.
•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 reflecting management's assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.
The following table summarizes the assets measured at fair value on a recurring basis by level within the fair value hierarchy as of September 30, 2023 (in thousands):
Level 1 Level 2 Level 3 Total
Cash equivalents
Money market funds $ 49,909  $ —  $ —  $ 49,909 
Short-term investments
US government and agency securities 12,056  19,910  —  31,966 
Commercial paper —  23,182  —  23,182 
Total $ 61,965  $ 43,092  $ —  $ 105,057 
The following table summarizes the assets measured at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2022 (in thousands):
Level 1 Level 2 Level 3 Total
Cash equivalents
Money market funds $ 41,213  $ —  $ —  $ 41,213 
Commercial paper —  8,980  —  8,980 
Short-term investments
US government and agency securities 24,944  11,663  —  36,607 
Commercial paper —  14,733  —  14,733 
Total $ 66,157  $ 35,376  $ —  $ 101,533 
The following tables summarize the Company's short-term investments on the consolidated balance sheets as of September 30, 2023 and December 31, 2022 (in thousands):
September 30, 2023
Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
Short-term investments
US government and agency securities $ 31,989  $ —  $ (23) $ 31,966 
Commercial paper 23,182  —  —  23,182 
Total $ 55,171  $ —  $ (23) $ 55,148 
December 31, 2022
Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
Short-term investments
US government and agency securities $ 36,595  $ 18  $ (6) $ 36,607 
Commercial paper 14,733  —  —  14,733 
Total $ 51,328  $ 18  $ (6) $ 51,340 
The following tables summarize the Company’s cash and cash equivalents on the consolidated balance sheets as of September 30, 2023 and December 31, 2022 (in thousands):
September 30, 2023
Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
Cash $ 13,382  $ —  $ —  $ 13,382 
Cash equivalents
Money market funds 49,909  —  —  49,909 
Total $ 63,291  $ —  $ —  $ 63,291 
December 31, 2022
Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
Cash $ 11,804  $ —  $ —  $ 11,804 
Cash equivalents
Money market funds 41,213  —  —  41,213 
Commercial paper 8,980  —  —  8,980 
Total $ 61,997  $ —  $ —  $ 61,997 
As of September 30, 2023, the weighted-average remaining contractual maturities of available-for-sale securities was approximately seven months.
No available-for-sale securities held as of September 30, 2023 have been in a continuous unrealized loss position for more than 12 months. As of September 30, 2023, unrealized losses on available-for-sale securities are not attributed to credit risk and are considered temporary. The Company believes it is more likely than not that investments in an unrealized loss position will be held until maturity or the cost basis of the investment will be recovered. The Company believes it has no other-than-temporary impairments on its securities as it does not intend to sell these securities and does not believe it is more likely than not that it will be required to sell these securities before the recovery of their amortized cost basis. To date, the Company has not recorded any impairment charges on securities related to other-than-temporary declines in fair value. The Company’s cash equivalents and short-term investments are due within one year from the balance sheet date.
For the three and nine months ended September 30, 2023, both unrealized holding gains and losses are immaterial and the resulting net unrealized holding loss has been included in accumulated other comprehensive income. For the three and nine months ended September 30, 2022, there were no unrealized holding gains or losses recorded in accumulated other comprehensive income.
As of September 30, 2023 and December 31, 2022, the fair value of debt was $10.0 million and $10.4 million, respectively (Level 2). The carrying amounts of certain financial instruments, including accounts receivable, accounts payable, and accrued liabilities approximate fair value due to their short-term maturities and are excluded from the fair value tables above.