v3.22.2.2
Fair Value Measurements
 9 Months Ended
Oct. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Note 4. Fair Value Measurements
The accounting guidance for fair value measurements establishes a three-tier hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows:
Level inputInput definition
Level 1Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets
Level 2Inputs other than quoted prices included within Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date
Level 3Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date
In general, and where applicable, we use quoted prices in active markets for identical assets or liabilities to determine fair value. If quoted prices in active markets for identical assets or liabilities are not available to determine fair value, then we use quoted prices for similar assets and liabilities or inputs other than the quoted prices that are observable either directly or indirectly.
The following tables summarize our fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis (in thousands):
October 31, 2022
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$162,503 $— $— $162,503 
Short-term investments:
U.S. government securities$— $52,025 $— $52,025 
Corporate bonds— 51,459 — 51,459 
Commercial paper— 100,908 — 100,908 
Supranational bonds— 3,982 — 3,982 
Foreign government securities— 9,967 — 9,967 
Total short-term investments$— $218,341 $— $218,341 
Liabilities:
Warrant liability$— $— $2,695 $2,695 
Contingent consideration— — 3,000 3,000 
Total liabilities$— $— $5,695 $5,695 
January 31, 2022
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$92,668 $— $— $92,668 
Short-term investments:
U.S. government securities$— $17,927 $— $17,927 
Corporate bonds— 21,176 — 21,176 
Commercial paper— 55,234 — 55,234 
Supranational bonds— 3,503 — 3,503 
Foreign government securities— 4,042 — 4,042 
Total short-term investments$— $101,882 $— $101,882 
Changes in our Level 3 fair value measurements were as follows (in thousands):
Warrant LiabilityAcquisition-related Contingent Consideration
Balance, January 31, 2022
$— $— 
Issuances12,043 — 
Additions— 4,800 
Settlements— — 
Gain on change in fair value(9,348)(1,800)
Balance, October 31, 2022
$2,695 $3,000 
The carrying amounts of certain financial instruments, including cash held in bank accounts, accounts receivable, accounts payable, and accrued expenses, approximate fair value due to their relatively short maturities.
As of October 31, 2022, the net carrying amount of the Initial Notes was $208.4 million, and the estimated fair value was $139.3 million. The fair value of the Initial Notes is classified as a Level 3 measurement. Additional information regarding the Initial Notes and Warrant liability is included in Note 9. Debt and Note 17. Warrants to Purchase Shares of Common Stock, respectively. Additional information regarding acquisition-related contingent consideration is included in Note 19. Zephr Acquisition.