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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2021

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission File Number: 001-38890

 

Cortexyme, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

90-1024039

( State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

269 East Grand Ave.

South San Francisco, California

94080

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (415) 910-5717

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.001 per share

 

CRTX

 

Nasdaq Global Select Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of May 3, 2021, the registrant had 29,588,481 shares of common stock, $0.001 par value per share, outstanding.

 

 

 

 


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Consolidated Balance Sheets

1

 

Condensed Consolidated Statements of Operations and Comprehensive Loss

2

 

Condensed Consolidated Statements of Stockholders’ Equity

3

 

Condensed Consolidated Statements of Cash Flows

4

 

Notes to Unaudited Condensed Consolidated Financial Statements

5

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

15

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

23

Item 4.

Controls and Procedures

24

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

25

Item 1A.

Risk Factors

25

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

61

Item 3.

Defaults Upon Senior Securities

62

Item 4.

Mine Safety Disclosures

62

Item 5.

Other Information

62

Item 6.

Exhibits

63

Signatures

64

 

 

 

i


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Cortexyme, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except share and per share amounts)

 

 

 

March 31, 2021

 

 

December 31, 2020 (1)

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

85,315

 

 

$

66,841

 

Short term investments

 

 

61,720

 

 

 

66,979

 

Prepaid expenses and other current assets

 

 

2,850

 

 

 

4,042

 

Total current assets

 

 

149,885

 

 

 

137,862

 

Property and equipment, net

 

 

378

 

 

 

427

 

Operating lease right-of-use assets, net

 

 

500

 

 

 

674

 

Long term investments

 

 

23,720

 

 

 

50,464

 

Other assets

 

 

39

 

 

 

39

 

Total assets

 

$

174,522

 

 

$

189,466

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

2,845

 

 

$

3,555

 

Accrued expenses and other current liabilities

 

 

15,022

 

 

 

13,441

 

Total current liabilities

 

 

17,867

 

 

 

16,996

 

Long-term operating lease liability

 

 

171

 

 

 

208

 

Total liabilities

 

 

18,038

 

 

 

17,204

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value, 10,000,000 authorized, no shares issued and

   outstanding as of March 31, 2021 and December 31, 2020

 

 

 

 

 

 

Common stock, $0.001 par value, 100,000,000 shares authorized,

   29,575,944 and 29,543,222 issued and outstanding as of March 31, 2021 and

   December 31, 2020, respectively

 

 

29

 

 

 

29

 

Additional paid in capital

 

 

326,006

 

 

 

318,574

 

Accumulated other comprehensive income

 

 

189

 

 

 

313

 

Accumulated deficit

 

 

(169,740

)

 

 

(146,654

)

Total stockholders’ equity

 

 

156,484

 

 

 

172,262

 

Total liabilities and stockholders’ equity

 

$

174,522

 

 

$

189,466

 

(1)

The balance sheet as of December 31, 2020 is derived from the audited financial statements as of that date

 

See accompanying notes.

1


Cortexyme, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(In thousands, except share and per share amounts)

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

$

16,824

 

 

$

14,380

 

General and administrative

 

 

6,489

 

 

 

3,478

 

Total operating expenses

 

 

23,313

 

 

 

17,858

 

Loss from operations

 

 

(23,313

)

 

 

(17,858

)

Interest income

 

 

227

 

 

 

682

 

Net loss

 

 

(23,086

)

 

 

(17,176

)

Other comprehensive loss:

 

 

 

 

 

 

 

 

Unrealized loss on available for sales securities

 

 

(124

)

 

 

(97

)

Total comprehensive loss

 

 

(23,210

)

 

 

(17,273

)

Net loss per share - basic and diluted

 

 

(0.78

)

 

 

(0.61

)

Weighted average shares of common stock outstanding - basic and diluted

 

 

29,554,921

 

 

 

28,261,719

 

 

See accompanying notes.

 

 

2


 

Cortexyme, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

(In thousands, except share and per share amounts)

 

 

 

Common Stock

 

 

Additional

Paid in

 

 

Accumulated Other

Comprehensive

 

 

Accumulated

 

 

Total Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income / (Loss)

 

 

Deficit

 

 

Equity

 

Balance January 1, 2021

 

 

29,543,222

 

 

$

29

 

 

$

318,574

 

 

$

313

 

 

$

(146,654

)

 

$

172,262

 

Exercise of stock options

 

 

32,722

 

 

 

 

 

 

441

 

 

 

 

 

 

 

 

 

441

 

Stock based compensation

 

 

 

 

 

 

 

 

6,991

 

 

 

 

 

 

 

 

 

6,991

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(124

)

 

 

 

 

 

(124

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(23,086

)

 

 

(23,086

)

Balance March 31, 2021

 

 

29,575,944

 

 

$

29

 

 

$

326,006

 

 

$

189

 

 

$

(169,740

)

 

$

156,484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance January 1, 2020

 

 

26,869,413

 

 

$

27

 

 

$

185,196

 

 

$

60

 

 

$

(69,805

)

 

$

115,478

 

Issuance of common stock in connection

   with private placement, net of issuance

   costs of $7,310

 

 

2,500,000

 

 

 

2

 

 

 

117,688

 

 

 

 

 

 

 

 

 

117,690

 

Exercise of stock options

 

 

35,127

 

 

 

 

 

 

191

 

 

 

 

 

 

 

 

 

191

 

Stock based compensation

 

 

 

 

 

 

 

 

1,955

 

 

 

 

 

 

 

 

 

1,955

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(97

)

 

 

 

 

 

(97

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(17,176

)

 

 

(17,176

)

Balance March 31, 2020

 

 

29,404,540

 

 

$

29

 

 

$

305,030

 

 

$

(37

)

 

$

(86,981

)

 

$

218,041

 

 

See accompanying notes.

 

 

3


 

 

Cortexyme, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

For the Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net Loss

 

$

(23,086

)

 

$

(17,176

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Non-cash rent expense

 

 

92

 

 

 

92

 

Stock based compensation

 

 

6,991

 

 

 

1,955

 

Depreciation and amortization

 

 

86

 

 

 

83

 

Amortization of premium on available for sale investments

 

 

202

 

 

56

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets

 

 

1,192

 

 

 

49

 

Accounts payable

 

 

(710

)

 

 

1,879

 

Accrued expenses and other current liabilities

 

 

1,623

 

 

 

2,283

 

Net cash used in operating activities

 

 

(13,610

)

 

 

(10,779

)

Cash flow from investing activities:

 

 

 

 

 

 

 

 

Purchase of investments

 

 

(11,980

)

 

 

(95,543

)

Proceeds from maturities of investments

 

 

43,660

 

 

 

22,867

 

Purchase of property and equipment

 

 

(37

)

 

 

(5

)

Net cash provided by / (used in) investing activities

 

 

31,643

 

 

 

(72,681

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Payments of finance leases

 

 

 

 

 

(29

)

Proceeds from issuance of common stock upon exercise of stock options

 

 

441

 

 

 

191

 

Proceeds from private placement offering, net of issuance costs

 

 

 

 

 

117,690

 

Net cash provided by financing activities

 

 

441

 

 

 

117,852

 

Net increase in cash and cash equivalents

 

 

18,474

 

 

 

34,392

 

Cash and cash equivalents at beginning of period

 

 

66,841

 

 

 

51,214

 

Cash and cash equivalents at end of period

 

$

85,315

 

 

$

85,606

 

 

See accompanying notes.

4


 

Cortexyme, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Note 1. Organization

Description of Business

Cortexyme, Inc. (the “Company”) was incorporated in the State of Delaware in June 2012 and is headquartered in South San Francisco, California. The Company is a clinical stage biopharmaceutical company focused on developing therapeutics based on data supporting a new theory of the cause of Alzheimer’s disease and other degenerative disorders. Cortexyme is targeting a specific, infectious pathogen tied to neurodegeneration and chronic inflammation in humans and animal models.

Private Investment in Public Equity (“PIPE”)

In February 2020, the Company completed a private investment in public equity transaction (“PIPE Financing”). The Company entered into Stock Purchase Agreements (the “Purchase Agreements”) with certain accredited investors, including an entity affiliated with a member of the Company’s Board of Directors, pursuant to which the Company sold and issued shares of common stock for aggregate gross proceeds of $125.0 million. Costs related to the offering were $7.3 million. Pursuant to the Purchase Agreements, the Company sold 2,500,000 common shares at $50.00 per common share.  In connection with the PIPE Financing, the Company filed a registration statement on Form S-1 (File No. 333-237594), with the SEC registering for resale the shares of common stock issued in the PIPE Financing. The registration statement was declared effective by the SEC on April 13, 2020.

Liquidity and Capital Resources

The Company has incurred losses and negative cash flows from operations since inception and expects to continue to generate operating losses for the foreseeable future. As of March 31, 2021, the Company had an accumulated deficit of $169.7 million. Since inception through March 31, 2021, the Company has funded operations primarily with the net proceeds from the issuance of convertible promissory notes, from the issuance of redeemable convertible preferred stock, from the net proceeds from the Company’s initial public offering (the “IPO”) and from the net proceeds from the PIPE Financing. As of March 31,2021, the Company had cash, cash equivalents, and short-term investments of $147.0 million, which it believes will be sufficient to fund its planned operations for a period of at least 12 months from the date of the issuance of the accompanying unaudited consolidated financial statements. The Company also has long-term investments of $23.7 million.

Management expects to incur additional losses in the future to fund its operations and conduct product research and development and may need to raise additional capital to fully implement its business plan. The Company may raise additional capital through the issuance of equity securities, debt financings or other sources in order to further implement its business plan. However, if such financing is not available when needed and at adequate levels, the Company will need to reevaluate its operating plan and may be required to delay the development of its product candidate.

Note 2. Summary of Significant Accounting Policies

 

Basis of Consolidation

The condensed consolidated financial statements include the accounts of Cortexyme, Inc. and its wholly owned subsidiary. All intercompany balances and transactions have been eliminated.

 

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the instructions of the SEC on Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the management’s opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the results of operations and cash flows for the periods presented have been included.

The condensed consolidated balance sheet as of March 31, 2021, the condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2021 and 2020, the condensed consolidated statements of stockholders’ equity as of March 31, 2021 and 2020, the condensed consolidated statements of cash flows for the three months ended March 31,

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2021 and 2020, and the financial data and other financial information disclosed in the notes to the condensed consolidated financial statements are unaudited. These financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2020 included in the Company’s Form 10-K filed with the SEC on March 1, 2021. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021, or for any other future annual or interim period.

Risks and Uncertainties

The Company’s future results of operations involve a number of risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of results of clinical trials and reaching milestones, uncertainty of regulatory approval of the Company’s potential drug candidates, uncertainty of market acceptance of the Company’s drug candidates, competition from substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals. The Company’s drug candidate will require approvals from the U.S. Food and Drug Administration (FDA) and comparable foreign regulatory agencies prior to commercial sales in their respective jurisdictions. There can be no assurance that any drug candidate will receive the necessary approvals. If the Company was denied approval, approval was delayed or the Company was unable to maintain approval for any drug candidate, it could have a materially adverse impact on the Company.

In connection with the COVID-19 pandemic, governments have implemented significant measures, including closures, quarantines, travel restrictions and other social distancing directives, intended to control the spread of the virus. Companies have also taken precautions, such as requiring employees to work remotely, imposing travel restrictions, and temporarily closing businesses. To the extent that these restrictions remain in place, additional prevention and mitigation measures are implemented in the future or there is uncertainty about the effectiveness of these or any other measures to contain or treat COVID-19, there is likely to be a continuing, adverse impact on global economic conditions and consumer confidence and spending, which could materially and adversely affect the Company’s research and development, as well as operational activities. At this time, the Company continues to manage and mitigate potential disruptions to its research and future manufacturing and supply chain considerations. The Company has not experienced significant hinderances to its operations or material negative financial impacts as compared to prior periods. At this time, the extent to which the COVID-19 pandemic impacts the Company’s business will depend on future developments which are highly uncertain and cannot be predicted.

 

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and expenses, as well as related disclosure of contingent assets and liabilities. The most significant estimates used in the Company’s consolidated financial statements relate to the determination of the fair value of common stock prior to the initial public offering, stock-based awards and other issuances, accruals for research and development costs, useful lives of long-lived assets, stock-based compensation and related assumptions, the incremental borrowing rate for leases and income tax uncertainties, including a valuation allowance for deferred tax assets; and contingencies. The Company bases its estimates on historical experience and on various other market specific and other relevant assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from the Company’s estimates.

Significant Accounting Policies

There have been no significant changes to the accounting policies during the three months ended March 31, 2021, as compared to the significant accounting policies described in our Annual Report on Form 10-K.

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash and cash equivalents. Cash equivalents, which consist of amounts invested in money market funds, are stated at fair value. There are no unrealized gains or losses on the money market funds for the periods presented.

 

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Fair Value Measurements

The fair value of the Company’s financial instruments reflects the amounts that the Company estimates that it would receive in connection with the sale of an asset or pay in connection with the transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). The Company discloses and recognizes the fair value of its assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). The guidance establishes three levels of the fair value hierarchy as follows:

Level 1 - Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date;

Level 2 - Inputs other than quoted prices that are observable for the assets or liability either directly or indirectly, including inputs in markets that are not considered to be active;

Level 3 - Inputs that are unobservable. 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 Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. 

Recent Accounting Pronouncements Not Yet Adopted

The following are new accounting pronouncements that the Company is evaluating for future impacts on its financial statements:

Financial Instruments—Credit Losses: In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which amends the principles around the recognition of credit losses by mandating entities incorporate an estimate of current expected credit losses when determining the value of certain assets. The guidance also amends reporting around allowances for credit losses on available-for-sale marketable securities. In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842): Effective Dates, which established that a one-time determination of the effective date for ASU 2016-13 would be based on the Company’s SEC reporting status as of November 15, 2019. The Company was a “smaller reporting company” as defined by Item 10 of Regulation S-K, and therefore, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is evaluating the impact of the guidance on its financial statements.

All other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable.

Note 3. Fair Value Measurements

The Company measures and reports its cash equivalents and investments at fair value.

Money market funds are measured at fair value on a recurring basis using quoted prices and are classified as Level 1. Investments are measured at fair value based on inputs other than quoted prices that are derived from observable market data and are classified as Level 2 inputs.

Financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used in such measurements by major security type as of March 31, 2021 and December 31, 2020 are presented in the following tables (in thousands):

 

 

 

Fair Value Measurements at March 31, 2021

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Money market funds

 

$

38,246

 

 

$

38,246

 

 

$

 

 

$

 

Certificates of Deposit

 

 

17,888

 

 

 

 

 

 

17,888

 

 

 

 

Repurchase Agreements

 

 

22,500

 

 

 

 

 

 

22,500

 

 

 

 

Corporate notes

 

 

59,377

 

 

 

 

 

 

59,377

 

 

 

 

Government and agency notes

 

 

4,686

 

 

 

 

 

 

4,686

 

 

 

 

Municipal notes

 

 

3,489

 

 

 

 

 

 

3,489

 

 

 

 

Total

 

$

146,186

 

 

$

38,246

 

 

$

107,940

 

 

$

 

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Fair Value Measurements at December 31, 2020

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Money market funds

 

$

15,661

 

 

$

15,661

 

 

$

 

 

$

 

Certificates of Deposit

 

 

30,765

 

 

 

 

 

 

30,765

 

 

 

 

Repurchase Agreements

 

 

15,000

 

 

 

 

 

 

15,000

 

 

 

 

Corporate notes

 

 

75,426

 

 

 

 

 

 

75,426

 

 

 

 

Government and agency notes

 

 

8,296

 

 

 

 

 

 

8,296

 

 

 

 

Municipal notes

 

 

3,446

 

 

 

 

 

 

3,446

 

 

 

 

Total

 

$

148,594

 

 

$

15,661

 

 

$

132,933

 

 

$

 

 

The following table summarizes the available-for-sale securities (in thousands):

 

 

 

Fair Value Measurements at March 31, 2021

 

 

 

Amortized

Cost

 

 

Unrealized

Gains

 

 

Unrealized

Losses

 

 

Fair Value

 

Money market funds

 

$

38,246

 

 

$

 

 

$

 

 

$

38,246

 

Certificates of Deposit

 

 

17,793

 

 

 

95

 

 

 

 

 

 

17,888

 

Repurchase Agreements

 

 

22,500

 

 

 

 

 

 

 

 

 

22,500

 

Corporate notes

 

 

59,300

 

 

 

97

 

 

 

(20

)

 

 

59,377

 

Government and agency notes

 

 

4,671

 

 

 

16

 

 

 

(1

)

 

 

4,686

 

Municipal notes

 

 

3,488

 

 

 

2

 

 

 

(1

)

 

 

3,489

 

Total cash equivalents and investments

 

$

145,998

 

 

$

210

 

 

$

(22

)

 

$

146,186

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified as:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents (maturities within 90 days)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

60,746

 

Short-term investments (maturities within one year)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

61,720

 

Long-term investments (maturities beyond 1 year)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,720

 

Total cash equivalents and investments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

146,186

 

 

 

 

Fair Value Measurements at December 31, 2020

 

 

 

Amortized

Cost

 

 

Unrealized

Gains

 

 

Unrealized

Losses

 

 

Fair Value

 

Money market funds

 

$

15,661

 

 

$

 

 

$

 

 

$

15,661

 

Certificates of Deposit

 

 

30,603

 

 

 

162

 

 

 

 

 

 

30,765

 

Repurchase Agreements

 

 

15,000

 

 

 

 

 

 

 

 

 

15,000

 

Corporate notes

 

 

75,298

 

 

 

183

 

 

 

(55

)

 

 

75,426

 

Government and agency notes

 

 

8,274

 

 

 

22

 

 

 

 

 

 

8,296

 

Municipal notes

 

 

3,445

 

 

 

1

 

 

 

 

 

 

3,446

 

Total cash equivalents and investments

 

$

148,281

 

 

$

368

 

 

$

(55

)

 

$

148,594

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified as:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents (maturities within 90 days)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

31,151

 

Short-term investments (maturities within one year)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

66,979

 

Long-term investments (maturities beyond 1 year)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

50,464

 

Total cash equivalents and investments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

148,594

 

 

As of March 31, 2021, the remaining contractual maturities of available-for-sale securities was approximately 10 months. There have been no significant realized gains or losses on available-for-sale securities for the period presented. Based on the Company’s review of its available-for-sale securities, the Company has a limited number of available-for-sale securities in insignificant loss positions as of March 31, 2021, none of which have been in a loss position for more than a year. The Company believes it had no other-than-temporary impairments on these securities as of March 31, 2021, because the Company does not intend to sell these securities nor does the Company believe that it will be required to sell these securities before the recovery of their amortized cost basis.

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The investments are classified as available-for-sale securities. At March 31, 2021 and December 31, 2020, the balance in the Company’s accumulated other comprehensive income was comprised primarily of activity related to the Company’s available-for-sale securities. There were no realized gains or losses recognized on the sale or maturity of available-for-sale securities for the three months ended March 31, 2021 and as a result, the Company did not reclassify any amounts out of accumulated other comprehensive income for the quarter.

There were no transfers between Levels 1, 2 or 3 for the period presented.

Note 4: Cash, cash equivalents and investments

 

The following tables categorize the fair values of cash, cash equivalents, short-term investments and long-term investments measured at fair value on a recurring basis on our balance sheets (in thousands):

 

 

 

March 31, 2021

 

 

December 31, 2020

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

Cash

 

$

24,569

 

 

$

35,690

 

Money market funds

 

 

38,246

 

 

 

15,661

 

Repurchase agreements

 

 

22,500

 

 

 

15,000

 

Certificates of deposit

 

 

 

 

 

490

 

Total cash and cash equivalents

 

$

85,315

 

 

$

66,841

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

Certificates of deposit

 

$

14,240

 

 

$

23,387

 

Municipal notes

 

 

2,157

 

 

 

2,365

 

Corporate notes

 

 

41,053

 

 

 

34,991

 

Government and agency notes

 

 

4,270

 

 

 

6,236

 

Total short-term investments

 

$

61,720

 

 

$

66,979

 

 

 

 

 

 

 

 

 

 

Long-term investments

 

 

 

 

 

 

 

 

Corporate notes

 

$

18,324

 

 

$

40,435

 

Certificates of deposit

 

 

3,648

 

 

 

6,888

 

Municipal notes