10-Q
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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, 2022

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 001-39988

 

 

Bolt Biotherapeutics, Inc.

(Exact name of Registrant as specified in its Charter)

 

 

Delaware

47-2804636

(State or other jurisdiction of

incorporation or organization)

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

 

 

900 Chesapeake Drive

Redwood City, CA

94063

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (650) 665-9295

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, $0.00001 par value

 

BOLT

 

The 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. YesNo

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). YesNo

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 5, 2022, the registrant had 37,471,669 shares of common stock outstanding.

 

 

 


 

Table of Contents

 

 

 

Page

PART I FINANCIAL INFORMATION

 

Item 1.

Financial Statements (unaudited)

1

 

Condensed Balance Sheets as of March 31, 2022 and December 31, 2021

1

 

Condensed Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2022 and 2021

2

 

Condensed Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) for the Three Months Ended March 31, 2022 and 2021

3

 

Condensed Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021

4

 

Notes to the Condensed Financial Statements

5

Item 2.

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

17

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

26

Item 4.

Controls and Procedures

26

 

 

PART II OTHER INFORMATION

 

Item 1.

Legal Proceedings

27

Item 1A.

Risk Factors

27

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

27

Item 3.

Defaults Upon Senior Securities

27

Item 4.

Mine Safety Disclosures

27

Item 5.

Other Information

27

Item 6.

Exhibits

28

 

Signatures

29

 

i


 

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

BOLT BIOTHERAPEUTICS, INC.

CONDENSED BALANCE SHEETS

(Unaudited, in thousands, except share and per share amounts)

 

 

 

March 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

44,021

 

 

$

27,383

 

Short-term investments

 

 

146,880

 

 

 

158,836

 

Prepaid expenses and other current assets

 

 

5,187

 

 

 

2,941

 

Total current assets

 

 

196,088

 

 

 

189,160

 

Property and equipment, net

 

 

6,637

 

 

 

6,158

 

Operating lease right-of-use assets

 

 

23,274

 

 

 

24,445

 

Restricted cash

 

 

1,565

 

 

 

1,565

 

Long-term investments

 

 

54,313

 

 

 

85,348

 

Other assets

 

 

916

 

 

 

1,042

 

Total assets

 

$

282,793

 

 

$

307,718

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

4,446

 

 

$

3,574

 

Accrued expenses and other current liabilities

 

 

9,351

 

 

 

12,384

 

Deferred revenue

 

 

3,448

 

 

 

2,869

 

Operating lease liabilities

 

 

2,061

 

 

 

2,501

 

Total current liabilities

 

 

19,306

 

 

 

21,328

 

Operating lease liabilities, net of current portion

 

 

21,312

 

 

 

21,854

 

Deferred revenue, non-current

 

 

13,577

 

 

 

14,207

 

Other long-term liabilities

 

 

204

 

 

 

210

 

Total liabilities

 

 

54,399

 

 

 

57,599

 

Commitments and contingencies (Note 7)

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Preferred stock, $0.00001 par value, authorized shares—10,000,000 shares authorized at March 31, 2022 and December 31, 2021; zero shares issued and outstanding at March 31, 2022 and December 31, 2021

 

 

 

 

 

 

Common stock, $0.00001 par value; 200,000,000 shares authorized at March 31, 2022 and December 31, 2021; 37,471,312 and 37,399,694 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively

 

 

 

 

 

 

Additional paid-in capital

 

 

460,458

 

 

 

457,430

 

Accumulated other comprehensive loss

 

 

(1,396

)

 

 

(321

)

Accumulated deficit

 

 

(230,668

)

 

 

(206,990

)

Total stockholders' equity:

 

 

228,394

 

 

 

250,119

 

Total liabilities, convertible preferred stock, and stockholders' equity

 

$

282,793

 

 

$

307,718

 

 

The accompanying notes are an integral part of these unaudited condensed financial statements.

1


 

BOLT BIOTHERAPEUTICS, INC.

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited, in thousands, except share and per share amounts)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Collaboration revenue

 

$

813

 

 

$

 

Operating expenses:

 

 

 

 

 

 

Research and development

 

 

18,385

 

 

 

14,127

 

General and administrative

 

 

6,304

 

 

 

4,299

 

Total operating expense

 

 

24,689

 

 

 

18,426

 

Loss from operations

 

 

(23,876

)

 

 

(18,426

)

Other income (expense), net

 

 

 

 

 

 

Interest income, net

 

 

198

 

 

 

56

 

Change in fair value of preferred stock right liability

 

 

 

 

 

(6,084

)

Total other income (expense), net

 

 

198

 

 

 

(6,028

)

Net loss

 

 

(23,678

)

 

 

(24,454

)

Net unrealized loss on marketable securities

 

 

(1,075

)

 

 

(64

)

Comprehensive loss

 

$

(24,753

)

 

$

(24,518

)

Net loss per share, basic and diluted

 

$

(0.64

)

 

$

(1.14

)

Weighted-average shares outstanding, basic and diluted

 

 

37,127,876

 

 

 

21,498,306

 

 

The accompanying notes are an integral part of these unaudited condensed financial statements.

2


 

BOLT BIOTHERAPEUTICS, INC.

CONDENSED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)

(Unaudited, in thousands, except share amounts)

 

 

 

Three Months Ended March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

Total

 

 

 

Preferred Stock

 

 

 

Common

 

 

Paid-In

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit

 

 

Equity

 

Balance at December 31, 2021

 

 

 

 

$

 

 

 

 

37,399,694

 

 

$

 

 

$

457,430

 

 

$

(321

)

 

$

(206,990

)

 

$

250,119

 

Vesting of restricted stock units

 

 

 

 

 

 

 

 

 

25,834

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock upon exercise of stock options

 

 

 

 

 

 

 

 

 

45,784

 

 

 

 

 

 

107

 

 

 

 

 

 

 

 

 

107

 

Vesting of early exercised options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

2

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,919

 

 

 

 

 

 

 

 

 

2,919

 

Unrealized loss on available-for-sale investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,075

)

 

 

 

 

 

(1,075

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(23,678

)

 

 

(23,678

)

Balance at March 31, 2022

 

 

 

 

$

 

 

 

 

37,471,312

 

 

$

 

 

$

460,458

 

 

$

(1,396

)

 

$

(230,668

)

 

$

228,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

Convertible

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

Total

 

 

 

Preferred Stock

 

 

 

Common

 

 

Paid-In

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit

 

 

Equity (Deficit)

 

Balance at December 31, 2020

 

 

15,232,275

 

 

$

105,296

 

 

 

 

2,130,139

 

 

$

 

 

$

3,452

 

 

$

 

 

$

(108,399

)

 

$

(104,947

)

Issuance of Series C-2 convertible preferred stock, net of issuance cost of $42

 

 

5,611,059

 

 

 

51,902

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification of convertible preferred stock purchase right liability to equity upon issuance of convertible C-2 preferred stock

 

 

 

 

 

31,308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of convertible preferred stock to common stock

 

 

(20,843,334

)

 

 

(188,506

)

 

 

 

20,843,334

 

 

 

 

 

 

188,506

 

 

 

 

 

 

 

 

 

188,506

 

Issuance of common stock upon initial public offering, net of issuance costs of $22,541

 

 

 

 

 

 

 

 

 

13,225,000

 

 

 

 

 

 

241,959

 

 

 

 

 

 

 

 

 

241,959

 

Issuance of common stock upon exercise of common stock warrants

 

 

 

 

 

 

 

 

 

82,603

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock upon exercise of stock options

 

 

 

 

 

 

 

 

 

50,770

 

 

 

 

 

 

129

 

 

 

 

 

 

 

 

 

129

 

Vesting of early exercised options and restricted stock awards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

 

 

 

10

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,109

 

 

 

 

 

 

 

 

 

2,109

 

Unrealized gain on available-for-sale investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(64

)

 

 

 

 

 

(64

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(24,454

)

 

 

(24,454

)

Balance at March 31, 2021

 

 

 

 

$

 

 

 

 

36,331,846

 

 

$

 

 

$

436,165

 

 

$

(64

)

 

$

(132,853

)

 

$

303,248

 

 

The accompanying notes are an integral part of these unaudited condensed financial statements.

3


 

BOLT BIOTHERAPEUTICS, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss

 

$

(23,678

)

 

$

(24,454

)

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

 

 

 

 

 

 

Depreciation and amortization

 

 

357

 

 

 

272

 

Stock-based compensation expense

 

 

2,919

 

 

 

2,109

 

Accretion of premium/discount on marketable securities

 

 

466

 

 

 

271

 

Change in fair value of convertible preferred stock purchase rights liabilities

 

 

 

 

 

6,084

 

Non-cash lease expense

 

 

1,171

 

 

 

530

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Prepaid expenses and other assets

 

 

(2,120

)

 

 

(1,351

)

Accounts payable and accrued expenses

 

 

(2,392

)

 

 

(88

)

Operating lease liabilities

 

 

(982

)

 

 

66

 

Deferred revenue

 

 

(51

)

 

 

 

Other long-term liabilities

 

 

(4

)

 

 

2

 

Net cash used in operating activities

 

 

(24,314

)

 

 

(16,559

)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(605

)

 

 

(58

)

Purchases of marketable securities

 

 

(76,084

)

 

 

(198,069

)

Maturities of marketable securities

 

 

117,534

 

 

 

7,606

 

Net cash provided by (used in) investing activities

 

 

40,845

 

 

 

(190,521

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds from issuance of preferred stock, net of issuance cost

 

 

 

 

 

51,902

 

Proceeds from initial public offering, net of issuance cost

 

 

 

 

 

244,988

 

Proceeds from issuance of common stock

 

 

107

 

 

 

129

 

Net cash provided by financing activities

 

 

107

 

 

 

297,019

 

Net increase in cash

 

 

16,638

 

 

 

89,939

 

Cash, cash equivalents and restricted cash at beginning of year

 

 

28,948

 

 

 

7,107

 

Cash, cash equivalents and restricted cash at end of period

 

$

45,586

 

 

$

97,046

 

Reconciliation of cash, cash equivalents and restricted cash:

 

 

 

 

 

 

Cash and cash equivalents

 

$

44,021

 

 

$

95,481

 

Restricted cash

 

 

1,565

 

 

 

1,565

 

Total cash, cash equivalents and restricted cash

 

$

45,586

 

 

$

97,046

 

Supplemental schedule of non-cash investing and financing activities:

 

 

 

 

 

 

Vesting of early exercised options

 

$

2

 

 

$

10

 

Purchases of property and equipment included in accounts payable and accrued liabilities

 

$

231

 

 

$

37

 

Deferred offering costs in accounts payable and accrued liabilities

 

$

64

 

 

$

672

 

 

The accompanying notes are an integral part of these unaudited condensed financial statements.

4


 

BOLT BIOTHERAPEUTICS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

1. Description of the Business

Bolt Biotherapeutics, Inc. (the “Company”) is pioneering a new class of immuno-oncology agents that combine the targeting precision of antibodies with the power of both the innate and adaptive immune systems.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed financial statements as of March 31, 2022 and for the three months ended March 31, 2022 and 2021 have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and pursuant to applicable rules and regulations of the SEC regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited condensed financial statements include only normal and recurring adjustments and certain immaterial reclassifications, which are normal in nature, that the Company believes are necessary to a fair statement of the Company’s financial position and the results of its operations and cash flows. The balance sheet as of December 31, 2021 was derived from the audited financial statements as of that date. Certain reclassifications on the condensed statement of cash flows have been made to prior period amounts to conform to current period presentation. These interim financial results are not necessarily indicative of results to be expected for the full year or any other period. These unaudited condensed financial statements and the notes accompanying them should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

Risks and Uncertainties

The Company is subject to a number of risks similar to other early-stage biopharmaceutical companies, including, but not limited to, changes in any of the following areas that the Company believes could have a material adverse effect on its future financial position or results of operations: risks related to the successful discovery and development of its product candidates, ability to raise additional capital, development of new technological innovations by its competitors, delay or inability to obtain chemical or biological intermediates from such suppliers required for the synthesis of the Company’s product candidates, including due to the impact of the ongoing COVID-19 pandemic, protection of intellectual property rights, litigation or claims against the Company based on intellectual property rights, and regulatory clearance and market acceptance of the Company’s products.

The Company relies on single source manufacturers and suppliers for the supply of its product candidates. Disruption from these manufacturers or suppliers would have a negative impact on the Company’s business, financial position, and results of operations.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to revenue recognition, stock-based compensation and accrued liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed 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 may differ materially from those estimates.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents and marketable securities. As of March 31, 2022 and December 31, 2021, most of the Company’s funds were invested with a registered investment manager and custodied at one financial institution, with working capital kept at a separate financial institution, and account balances may at times exceed federally insured limits. Management believes that the Company is not exposed to significant credit risk due to the financial strength of the depository institutions where the funds are held.

5


 

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of March 31, 2022 and December 31, 2021, cash and cash equivalents consisted primarily of bank deposits and money market funds, which were unrestricted as to withdrawal or use.

Marketable Securities

The Company classifies its marketable securities as available-for-sale and records such assets at estimated fair value in the balance sheets, with unrealized gains and losses that are determined to be temporary, if any, reported as a component of other comprehensive income (loss) within the statements of operations and comprehensive loss and as a separate component of stockholders’ equity (deficit). The Company classifies marketable securities with remaining maturities greater than three months but less than one year as short-term investments, and those with remaining maturities greater than one year are classified as long-term investments. Investments are regularly reviewed for other-than-temporary declines in fair value. The review includes the consideration of the cause of the impairment, including the creditworthiness of the security issuers, the number of investments in an unrealized loss position, the severity and duration of the unrealized losses and whether it is more likely than not that the Company will be required to sell the investments before the recovery of their amortized cost basis. A decline in the fair value of any security below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security. The Company invests its excess cash balances primarily in corporate debt securities with strong credit ratings. Realized gains and losses are calculated on the specific identification method and recorded as interest income and were immaterial for all periods presented.

Restricted Cash

As of March 31, 2022 and December 31, 2021, the Company had $1.6 million of long-term restricted cash deposited with a financial institution. The restricted cash is held in separate bank accounts to support letter of credit agreements related to the Company’s facility leases that expire in 2025 and 2031 (see Note 7).

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Cash and cash equivalents, restricted cash, marketable debt securities, accounts payable, accrued expenses and other current liabilities are reported at their respective fair values in our condensed balance sheets. The carrying amount of the remaining financial instruments approximate fair value due to their short-term nature. Refer to Note 3 for the methodologies and assumptions used in valuing financial instruments.

Net Loss Per Share

Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common stock and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, convertible preferred stock, stock options, common stock subject to repurchase related to unvested restricted stock awards and early exercise of stock options are considered potentially dilutive securities. Basic and diluted net loss per share is presented in conformity with the two-class method required for participating securities as the convertible preferred stock is considered a participating security because it participates in dividends with common stock. The Company also considers the shares issued upon the early exercise of stock options subject to repurchase to be participating securities because holders of such shares have non-forfeitable dividend rights in the event a dividend is paid on common stock. The holders of all series of convertible preferred stock and the holders of early exercised shares subject to repurchase do not have a contractual obligation to share in the Company’s losses. As such, the net loss was attributed entirely to common stockholders. Because the Company has reported a net loss for all periods presented, diluted net loss per share is the same as basic net loss per share for all periods presented as potentially dilutive securities were anti-dilutive.

Recent Accounting Standards

From time to time, new accounting standards are issued by the Financial Accounting Standards Board (the “FASB”), or other standard setting bodies and adopted by the Company as of the specified effective date. There have been no new accounting pronouncements issued nor adopted during the three months ended March 31, 2022 that are of significance to the Company’s financial position or results of operations.

6


 

3. Fair Value Measurements and Fair Value of Financial Instruments

The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows:

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

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 that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

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.

During the three months ended March 31, 2022, financial assets measured on a recurring basis consist of cash invested in money market accounts, short-term investments, and long-term investments. The fair value of short-term and long-term investments is based upon market prices quoted on the last day of the fiscal period or other observable market inputs. 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, bids and/or offers.

There were no transfers within the hierarchy during the three months ended March 31, 2022 or 2021.

Marketable securities, all of which are classified as available-for-sale securities, consisted of the following at March 31, 2022 and December 31, 2021 (in thousands):

 

 

 

March 31, 2022

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Estimated

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

Asset-backed securities

 

$

19,067

 

 

$

 

 

$

(96

)

 

$

18,971

 

U.S. treasury securities

 

 

84,988

 

 

 

1

 

 

 

(693

)

 

 

84,296

 

Other government agency securities

 

 

5,054

 

 

 

 

 

 

(70

)

 

 

4,984

 

Commercial paper

 

 

30,914

 

 

 

 

 

 

 

 

 

30,914

 

Corporate debt securities

 

 

62,560

 

 

 

1

 

 

 

(539

)

 

 

62,022

 

Total

 

$

202,583

 

 

$

2

 

 

$

(1,398

)

 

$

201,187