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, 2023

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 4, 2023, the registrant had 37,813,315 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, 2023 and December 31, 2022

1

 

Condensed Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2023 and 2022

2

 

Condensed Statements of Stockholders’ Equity for the Three Months Ended March 31, 2023 and 2022

3

 

Condensed Statements of Cash Flows for the Three Months Ended March 31, 2023 and 2022

4

 

Notes to the Condensed Financial Statements

5

Item 2.

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

20

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

30

Item 4.

Controls and Procedures

30

 

PART II OTHER INFORMATION

 

Item 1.

Legal Proceedings

30

Item 1A.

Risk Factors

30

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

30

Item 3.

Defaults Upon Senior Securities

31

Item 4.

Mine Safety Disclosures

31

Item 5.

Other Information

31

Item 6.

Exhibits

32

 

Signatures

33

 

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,

 

 

 

2023

 

 

2022

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

14,836

 

 

$

9,244

 

Short-term investments

 

 

111,543

 

 

 

159,644

 

Prepaid expenses and other current assets

 

 

5,230

 

 

 

3,858

 

Total current assets

 

 

131,609

 

 

 

172,746

 

Property and equipment, net

 

 

6,035

 

 

 

6,453

 

Operating lease right-of-use assets

 

 

21,353

 

 

 

22,072

 

Restricted cash

 

 

1,565

 

 

 

1,565

 

Long-term investments

 

 

44,586

 

 

 

23,943

 

Other assets

 

 

1,033

 

 

 

1,028

 

Total assets

 

$

206,181

 

 

$

227,807

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

1,835

 

 

$

3,594

 

Accrued expenses and other current liabilities

 

 

10,334

 

 

 

15,140

 

Deferred revenue

 

 

1,600

 

 

 

1,993

 

Operating lease liabilities

 

 

2,484

 

 

 

2,391

 

Total current liabilities

 

 

16,253

 

 

 

23,118

 

Operating lease liabilities, net of current portion

 

 

19,568

 

 

 

20,220

 

Deferred revenue, non-current

 

 

12,631

 

 

 

12,921

 

Other long-term liabilities

 

 

43

 

 

 

42

 

Total liabilities

 

 

48,495

 

 

 

56,301

 

Commitments and contingencies (Note 7)

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Preferred stock, $0.00001 par value, authorized shares—10,000,000 shares authorized at March 31, 2023 and December 31, 2022; zero shares issued and outstanding at March 31, 2023 and December 31, 2022

 

 

 

 

 

 

Common stock, $0.00001 par value; 200,000,000 shares authorized at March 31, 2023 and December 31, 2022; 37,813,037 and 37,797,902 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively

 

 

 

 

 

 

Additional paid-in capital

 

 

469,989

 

 

 

467,513

 

Accumulated other comprehensive loss

 

 

(235

)

 

 

(919

)

Accumulated deficit

 

 

(312,068

)

 

 

(295,088

)

Total stockholders' equity:

 

 

157,686

 

 

 

171,506

 

Total liabilities and stockholders' equity

 

$

206,181

 

 

$

227,807

 

 

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,

 

 

 

2023

 

 

2022

 

Collaboration revenue

 

$

1,826

 

 

$

813

 

Operating expenses:

 

 

 

 

 

 

Research and development

 

 

14,625

 

 

 

18,385

 

General and administrative

 

 

5,616

 

 

 

6,304

 

Total operating expense

 

 

20,241

 

 

 

24,689

 

Loss from operations

 

 

(18,415

)

 

 

(23,876

)

Other income, net

 

 

 

 

 

 

Interest income, net

 

 

1,435

 

 

 

198

 

Total other income, net

 

 

1,435

 

 

 

198

 

Net loss

 

 

(16,980

)

 

 

(23,678

)

Net unrealized gain (loss) on marketable securities

 

 

684

 

 

 

(1,075

)

Comprehensive loss

 

$

(16,296

)

 

$

(24,753

)

Net loss per share, basic and diluted

 

$

(0.45

)

 

$

(0.64

)

Weighted-average shares outstanding, basic and diluted

 

 

37,684,023

 

 

 

37,127,876

 

 

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

2


 

BOLT BIOTHERAPEUTICS, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited, in thousands, except share amounts)

 

 

 

Three Months Ended March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

Total

 

 

 

Common

 

 

Paid-In

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit

 

 

Equity

 

Balance at December 31, 2022

 

 

37,797,902

 

 

$

 

 

$

467,513

 

 

$

(919

)

 

$

(295,088

)

 

$

171,506

 

Vesting of restricted stock units

 

 

15,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

2,476

 

 

 

 

 

 

 

 

 

2,476

 

Unrealized gain on available-for-sale investments

 

 

 

 

 

 

 

 

 

 

 

684

 

 

 

 

 

 

684

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16,980

)

 

 

(16,980

)

Balance at March 31, 2023

 

 

37,813,037

 

 

$

 

 

$

469,989

 

 

$

(235

)

 

$

(312,068

)

 

$

157,686

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

Total

 

 

 

Common

 

 

Paid-In

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders'

 

 

 

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

 

 

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,

 

 

 

2023

 

 

2022

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss

 

$

(16,980

)

 

$

(23,678

)

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

 

 

 

 

 

 

Depreciation and amortization

 

 

467

 

 

 

357

 

Stock-based compensation expense

 

 

2,476

 

 

 

2,919

 

Accretion of premium/discount on marketable securities

 

 

(852

)

 

 

466

 

Non-cash lease expense

 

 

719

 

 

 

1,171

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Prepaid expenses and other assets

 

 

(1,377

)

 

 

(2,120

)

Accounts payable and accrued expenses

 

 

(6,611

)

 

 

(2,392

)

Operating lease liabilities

 

 

(559

)

 

 

(982

)

Deferred revenue

 

 

(683

)

 

 

(51

)

Other long-term liabilities

 

 

1

 

 

 

(4

)

Net cash used in operating activities

 

 

(23,399

)

 

 

(24,314

)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(3

)

 

 

(605

)

Purchases of marketable securities

 

 

(42,883

)

 

 

(76,084

)

Maturities of marketable securities

 

 

71,877

 

 

 

117,534

 

Net cash provided by investing activities

 

 

28,991

 

 

 

40,845

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds from issuance of common stock

 

 

 

 

 

107

 

Net cash provided by financing activities

 

 

 

 

 

107

 

Net increase in cash

 

 

5,592

 

 

 

16,638

 

Cash, cash equivalents and restricted cash at beginning of year

 

 

10,809

 

 

 

28,948

 

Cash, cash equivalents and restricted cash at end of period

 

$

16,401

 

 

$

45,586

 

Reconciliation of cash, cash equivalents and restricted cash:

 

 

 

 

 

 

Cash and cash equivalents

 

$

14,836

 

 

$

44,021

 

Restricted cash

 

 

1,565

 

 

 

1,565

 

Total cash, cash equivalents and restricted cash

 

$

16,401

 

 

$

45,586

 

Supplemental schedule of non-cash investing and financing activities:

 

 

 

 

 

 

Vesting of early exercised options

 

$

 

 

$

2

 

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

 

$

46

 

 

$

231

 

Deferred offering costs in accounts payable and accrued liabilities

 

$

102

 

 

$

64

 

 

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 a clinical-stage biopharmaceutical company developing novel immunotherapies for the treatment of cancer. The Company’s pipeline candidates are built on the Company’s deep expertise in myeloid biology and cancer drug development, uniting the targeting precision of antibodies with the power of the innate and adaptive immune system to reprogram the tumor microenvironment for a productive anti-cancer response.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed financial statements as of March 31, 2023 and for the three months ended March 31, 2023 and 2022 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, 2022 was derived from the audited financial statements as of that date. 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, 2022.

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, 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.

Global economic and business activities continue to face widespread macroeconomic uncertainties, including pandemics, labor shortages, inflation and monetary supply shifts, recession risks and potential disruptions from the Russia-Ukraine conflict. The Company continues to actively monitor the impact of these macroeconomic factors on its financial condition, liquidity, operations, and workforce. The extent of the impact of these factors on the Company’s operational and financial performance, including its ability to execute its business strategies and initiatives in the expected time frame, will depend on future developments, which are uncertain and cannot be predicted; however, any continued or renewed disruption resulting from these factors could negatively impact the Company’s business.

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.

5


 

Liquidity

The Company has incurred net losses and negative cash flows from operations since its inception and anticipates continuing to incur net losses for the foreseeable future. As of March 31, 2023, the Company had cash and cash equivalents and marketable securities of $171.0 million and an accumulated deficit of $312.1 million. Based upon the Company's current operating plans, the Company believes that its existing cash, cash equivalents and marketable securities will be sufficient to fund its operations for at least the next 12 months following the issuance date of this Quarterly Report on Form 10-Q. In the near term, the Company's primary uses of cash will be to fund the completion of key milestones for BDC-1001 and BDC-3042 and to fund its operations, including research and development activities and employee salaries. This includes significant costs relating to clinical trials and manufacture of the Company's product candidates. The Company's uses of cash in the long term will be similar as the Company advances its research and development activities and pays employee salaries. Most pharmaceutical products require larger clinical trials as development progresses, and the Company expects its funding requirements to grow with the advancement of its programs. The Company's long-term funding requirements will depend on many factors, which are uncertain but include its portfolio prioritization decisions and the success of its collaborations. In turn, the Company's ability to raise additional capital through equity or partnering will depend on the general economic environment in which it operates and its ability to achieve key milestones.

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.

Allowance for Credit Losses

For available-for-sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or if it is more likely than not that the Company will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through earnings. For available-for-sale securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the severity of the impairment, any changes in interest rates, market conditions, changes to the underlying credit ratings and forecasted recovery, among other factors. The credit-related portion of unrealized losses, and any subsequent improvements, are recorded in interest income through an allowance account. Any impairment that has not been recorded through an allowance for credit losses is included in other comprehensive income (loss) on the statements of operations and comprehensive loss.
 

The Company elected the practical expedient to exclude the applicable accrued interest from both the fair value and amortized costs basis of its available-for-sale securities for purposes of identifying and measuring an impairment. Accrued interest receivable on available-for-sale securities is recorded within cash and cash equivalents on the Company's condensed balance sheets. The Company's accounting policy is to not measure an allowance for credit loss for accrued interest receivable and to write-off any uncollectible accrued interest receivable as a reversal of interest income in a timely manner, which the Company considers to be in the period in which it determines the accrued interest will not be collected by the Company.

6


 

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 non-credit related 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. 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. The Company invests its excess cash balances primarily in corporate debt securities. Realized gains and losses are calculated on the specific identification method and recorded as interest income and were immaterial for all periods presented.

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, 2023 and December 31, 2022, most of the Company’s funds were invested with a registered investment manager and custodied at one financial institution, with operating cash kept at a separate financial institution, and account balances may at times exceed federally insured limits. Management believes that the Company is not subject to unusual or significant credit risk beyond the normal credit risk associated with commercial banking relationships.

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

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2020-03, and ASU 2020-02. The standard changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. The Company adopted ASU 2016-13 as of January 1, 2023. The adoption of ASU 2016-13 did not have a material impact on the Company's unaudited condensed financial statements.

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.

7


 

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, 2023, 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- 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, 2023 or 2022.

Marketable securities, all of which are classified as available-for-sale securities, consisted of the following at March 31, 2023 and December 31, 2022 (in thousands):

 

 

 

March 31, 2023

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Estimated

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

Asset-backed securities

 

$

20,009

 

 

$

20

 

 

$

(75

)

 

$

19,954

 

U.S. treasury securities

 

 

43,644

 

 

 

19

 

 

 

(158

)

 

 

43,505

 

Other government agency securities

 

 

9,787

 

 

 

41

 

 

 

 

 

 

9,828

 

Commercial paper

 

 

47,282

 

 

 

 

 

 

 

 

 

47,282

 

Corporate debt securities

 

 

35,642

 

 

 

11

 

 

 

(93

)

 

 

35,560

 

Total

 

$

156,364

 

 

$

91

 

 

$

(326

)

 

$

156,129

 

 

 

 

December 31, 2022

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Estimated

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

Asset-backed securities

 

$

12,754

 

 

$

11

 

 

$

(99

)

 

$

12,666

 

U.S. treasury securities

 

 

54,747

 

 

 

1

 

 

 

(517

)

 

 

54,231

 

Other government agency securities

 

 

5,009

 

 

 

 

 

 

(29

)

 

 

4,980

 

Commercial paper

 

 

56,170

 

 

 

 

 

 

 

 

 

56,170

 

Corporate debt securities

 

 

55,827

 

 

 

 

 

 

(287

)

 

 

55,540

 

Total

 

$

184,507

 

 

$

12

 

 

$

(932

)

 

$

183,587

 

 

As of March 31, 2023, the unrealized losses for available-for-sale investments were primarily due to changes in interest rates and not due to increased credit risks associated with specific securities. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. The Company does not currently intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at the time of maturity. As of March 31, 2023, no allowance for credit losses was recorded and the Company did not recognize any impairment losses related to investments.

The tables below show the gross unrealized losses and fair value of the Company's available-for-sale securities with unrealized losses that are not deemed to have credit losses (in thousands), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2023 and December 31, 2022, respectively:

 

 

 

March 31, 2023

 

 

 

Less Than 12 Months

 

 

More Than 12 Months

 

 

Total

 

 

 

Estimated

 

 

Unrealized

 

 

Estimated

 

 

Unrealized

 

 

Estimated

 

 

Unrealized

 

 

 

Fair Value

 

 

Losses

 

 

Fair Value

 

 

Losses

 

 

Fair Value

 

 

Losses

 

Asset-backed securities

 

$

5,027

 

 

$

(6

)

 

$

14,927

 

 

$

(69

)

 

$

19,954

 

 

$

(75

)

U.S. treasury securities

 

 

17,834

 

 

 

(14

)

 

 

25,671

 

 

 

(144

)