Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Investments

v3.19.2
Fair Value of Investments
6 Months Ended
Jun. 30, 2019
Fair Value of Investments  
Fair Value of Investments

5.

Fair Value of Investments

The Company has elected the Fair Value Option for all investments in debt securities. Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for classification and disclosure of fair value measurements as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, 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 Company classifies cash equivalents and investments according to the hierarchy of techniques used to determine fair value based on the types of inputs.

The following table represents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of June 30, 2019:

(Level 1)

(Level 2)

(Level 3)

Total

June 30, 2019

Assets:

Money market funds

$

13,421

$

$

$

13,421

U.S. government securities

14,943

14,943

Corporate bonds

16,089

16,089

Commercial paper

31,977

31,977

Asset-backed securities

15,176

15,176

Total assets

$

28,364

$

63,242

$

$

91,606

(Level 1)

(Level 2)

(Level 3)

Total

December 31, 2018

Assets:

Money market funds

$

12,947

$

$

$

12,947

U.S. government securities

15,923

15,923

Corporate bonds

31,495

31,495

Commercial paper

27,869

27,869

Asset-backed securities

17,025

17,025

Total assets

$

28,870

$

76,389

$

$

105,259

There were no changes in the levels or methodology of the measurement of financial assets or liabilities during the three months ended June 30, 2019. The maturity date of the Company’s investments is less than one year.