Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of changes in other long-term liabilities

The following table reconciles the beginning and ending balances for the Company’s net embedded derivative liability that is carried at fair value as a long-term liability on the Company's condensed balance sheets using significant unobservable inputs (Level 3) (in thousands):



	2022		2021

Beginning balance as of January 1	$	2,345	$	—
Recognition of net embedded derivative liability	—		450
Change in fair value of the net embedded derivative liability	5,806		(212)
Ending balance as of September 30	$	8,151	$	238

Schedule of financial assets measured and recognized at fair value

As of September 30, 2022, financial assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):


	Fair Value Measurements as of September 30, 2022
	Quoted Price in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Money market funds	42,696		—		—		42,696
Total assets	$	42,696	$	—	$	—	$	42,696
Liabilities:
Net embedded derivative liability	—		—		8,151		8,151
Total liabilities	$	—	$	—	$	8,151	$	8,151

As of December 31, 2021, financial assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):


	Fair Value Measurements as of December 31, 2021
	Quoted Price in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Money market funds	162,376		—		—		162,376
Total assets	$	162,376	$	—	$	—	$	162,376
Liabilities:
Net embedded derivative liability	—		—		2,345		2,345
Total liabilities	$	—	$	—	$	2,345	$	2,345