acad-10q_20210630.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

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

For the quarterly period ended June 30, 2021

or

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

Commission File Number: 000-50768

 

ACADIA PHARMACEUTICALS INC.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Delaware

06-1376651

(State of Incorporation)

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

 

12830 El Camino Real, Suite 400

San Diego, California

92130

(Address of Principal Executive Offices)

(Zip Code)

 

(858) 558-2871

(Registrant’s Telephone Number, Including Area Code)

 

 

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

 

Title of Each Class 

Trading Symbol

Name of Each Exchange on Which Registered 

Common Stock, par value $0.0001 per share

ACAD

The Nasdaq Stock Market LLC

 

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, 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  

Total shares of common stock outstanding as of the close of business on July 28, 2021:

 

Class 

 

Number of Shares Outstanding 

Common Stock, $0.0001 par value

 

160,643,284

 

 

 

 


 

 

ACADIA PHARMACEUTICALS INC.

FORM 10-Q

TABLE OF CONTENTS

 

 

 

PAGE NO.

 

 

 

PART I. FINANCIAL INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Financial Statements

 

1

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

1

 

 

 

 

 

 

 

Condensed Consolidated Statements of Operations

 

2

 

 

 

 

 

 

 

Condensed Consolidated Statements of Comprehensive Loss

 

3

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows

 

4

 

 

 

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity

 

5

 

 

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements

 

6

 

 

 

 

 

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

 

23

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

24

 

 

 

 

 

Item 1A.

 

Risk Factors

 

24

 

 

 

 

 

Item 6.

 

Exhibits

 

59

 

 

 

SIGNATURES

 

60

 

 

 

i


 

 

PART I. FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

ACADIA PHARMACEUTICALS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

 

 

 

June 30,

2021

 

 

December 31,

2020

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

266,956

 

 

$

326,028

 

Investment securities, available-for-sale

 

 

289,962

 

 

 

305,930

 

Accounts receivable, net

 

 

51,367

 

 

 

48,247

 

Interest and other receivables

 

 

453

 

 

 

2,035

 

Inventory

 

 

10,786

 

 

 

9,682

 

Prepaid expenses

 

 

26,206

 

 

 

25,694

 

Total current assets

 

 

645,730

 

 

 

717,616

 

Property and equipment, net

 

 

9,197

 

 

 

9,161

 

Operating lease right-of-use assets

 

 

61,371

 

 

 

47,283

 

Intangible assets, net

 

 

369

 

 

 

1,108

 

Restricted cash

 

 

5,770

 

 

 

5,770

 

Other assets

 

 

1,992

 

 

 

1,678

 

Total assets

 

$

724,429

 

 

$

782,616

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

Accounts payable

 

$

9,065

 

 

$

8,493

 

Accrued liabilities

 

 

86,263

 

 

 

97,474

 

Total current liabilities

 

 

95,328

 

 

 

105,967

 

Operating lease liabilities

 

 

59,134

 

 

 

44,460

 

Other long-term liabilities

 

 

5,129

 

 

 

5,180

 

Total liabilities

 

 

159,591

 

 

 

155,607

 

Commitments and contingencies (Note 9)

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 5,000,000 shares authorized at June 30, 2021

   and December 31, 2020; no shares issued and outstanding at June 30, 2021 and

   December 31, 2020

 

 

 

 

 

 

Common stock, $0.0001 par value; 225,000,000 shares authorized at June 30, 2021

   and December 31, 2020; 160,622,745 shares and 159,637,771 shares issued and

   outstanding at June 30, 2021 and December 31, 2020, respectively

 

 

16

 

 

 

16

 

Additional paid-in capital

 

 

2,660,809

 

 

 

2,612,663

 

Accumulated deficit

 

 

(2,096,025

)

 

 

(1,985,706

)

Accumulated other comprehensive income

 

 

38

 

 

 

36

 

Total stockholders’ equity

 

 

564,838

 

 

 

627,009

 

Total liabilities and stockholders’ equity

 

$

724,429

 

 

$

782,616

 

 

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

 

 

1


 

 

ACADIA PHARMACEUTICALS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales, net

 

$

115,221

 

 

$

110,103

 

 

$

221,775

 

 

$

200,171

 

Total revenues

 

 

115,221

 

 

 

110,103

 

 

 

221,775

 

 

 

200,171

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product sales

 

 

2,526

 

 

 

2,899

 

 

 

4,711

 

 

 

5,698

 

License fees and royalties

 

 

2,680

 

 

 

2,575

 

 

 

5,187

 

 

 

4,750

 

Research and development

 

 

56,935

 

 

 

64,295

 

 

 

113,908

 

 

 

136,931

 

Selling, general and administrative

 

 

96,789

 

 

 

84,344

 

 

 

208,450

 

 

 

186,317

 

Total operating expenses

 

 

158,930

 

 

 

154,113

 

 

 

332,256

 

 

 

333,696

 

Loss from operations

 

 

(43,709

)

 

 

(44,010

)

 

 

(110,481

)

 

 

(133,525

)

Interest income, net

 

 

133

 

 

 

1,825

 

 

 

333

 

 

 

4,814

 

Other income (expense)

 

 

178

 

 

 

437

 

 

 

323

 

 

 

(1,060

)

Loss before income taxes

 

 

(43,398

)

 

 

(41,748

)

 

 

(109,825

)

 

 

(129,771

)

Income tax expense

 

 

473

 

 

 

393

 

 

 

494

 

 

 

393

 

Net loss

 

$

(43,871

)

 

$

(42,141

)

 

$

(110,319

)

 

$

(130,164

)

Net loss per common share, basic and diluted

 

$

(0.27

)

 

$

(0.27

)

 

$

(0.69

)

 

$

(0.83

)

Weighted average common shares outstanding, basic and diluted

 

 

160,421

 

 

 

156,535

 

 

 

160,217

 

 

 

155,951

 

 

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

 

 

2


 

 

ACADIA PHARMACEUTICALS INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net loss

 

$

(43,871

)

 

$

(42,141

)

 

$

(110,319

)

 

$

(130,164

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on investment securities

 

 

5

 

 

 

(43

)

 

 

(1

)

 

 

1,183

 

Foreign currency translation adjustments

 

 

(1

)

 

 

(2

)

 

 

3

 

 

 

 

Comprehensive loss

 

$

(43,867

)

 

$

(42,186

)

 

$

(110,317

)

 

$

(128,981

)

 

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

 

 

3


 

 

ACADIA PHARMACEUTICALS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(110,319

)

 

$

(130,164

)

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

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

35,189

 

 

 

41,855

 

Amortization of premiums and accretion of discounts on investment securities

 

 

1,176

 

 

 

481

 

Amortization of intangible assets

 

 

739

 

 

 

739

 

(Gain) loss on strategic investment

 

 

(323

)

 

 

1,060

 

Depreciation

 

 

1,085

 

 

 

648

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(3,120

)

 

 

(8,004

)

Interest and other receivables

 

 

1,582

 

 

 

(250

)

Inventory

 

 

(878

)

 

 

(20

)

Prepaid expenses

 

 

(512

)

 

 

(6,240

)

Operating lease right-of-use assets

 

 

3,289

 

 

 

2,025

 

Other assets

 

 

9

 

 

 

66

 

Accounts payable

 

 

572

 

 

 

(756

)

Accrued liabilities

 

 

(11,331

)

 

 

11,853

 

Operating lease liabilities

 

 

(2,583

)

 

 

(862

)

Long-term liabilities

 

 

(51

)

 

 

1,684

 

Net cash used in operating activities

 

 

(85,476

)

 

 

(85,885

)

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchases of investment securities

 

 

(202,526

)

 

 

(100,813

)

Maturities of investment securities

 

 

217,317

 

 

 

261,153

 

Purchases of property and equipment

 

 

(1,121

)

 

 

(3,867

)

Net cash provided by investing activities

 

 

13,670

 

 

 

156,473

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock, net of issuance costs

 

 

12,731

 

 

 

51,155

 

Net cash provided by financing activities

 

 

12,731

 

 

 

51,155

 

Effect of exchange rate changes on cash

 

 

3

 

 

 

1

 

Net (decrease) increase in cash, cash equivalents and restricted cash

 

 

(59,072

)

 

 

121,744

 

Cash, cash equivalents and restricted cash

 

 

 

 

 

 

 

 

Beginning of period

 

 

331,798

 

 

 

194,467

 

End of period

 

$

272,726

 

 

$

316,211

 

Supplemental disclosure of noncash information:

 

 

 

 

 

 

 

 

Property and equipment purchases in accounts payable and accrued liabilities

 

$

 

 

$

288

 

 

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

 


4


 

 

ACADIA PHARMACEUTICALS INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

(Unaudited)

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Total stockholders’ equity, beginning balances

 

$

581,606

 

 

$

638,382

 

 

$

627,009

 

 

$

699,135

 

Common stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

 

16

 

 

 

15

 

 

 

16

 

 

 

15

 

Ending balance

 

 

16

 

 

 

15

 

 

 

16

 

 

 

15

 

Additional paid-in capital:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

 

2,633,710

 

 

 

2,428,987

 

 

 

2,612,663

 

 

 

2,402,945

 

Issuance of common stock from exercise of stock options

   and units

 

 

1,268

 

 

 

43,431

 

 

 

8,994

 

 

 

47,185

 

Issuance of common stock pursuant to employee stock

   purchase plan

 

 

3,737

 

 

 

3,970

 

 

 

3,737

 

 

 

3,970

 

Stock-based compensation

 

 

22,094

 

 

 

19,416

 

 

 

35,415

 

 

 

41,704

 

Ending balance

 

 

2,660,809

 

 

 

2,495,804

 

 

 

2,660,809

 

 

 

2,495,804

 

Accumulated deficit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

 

(2,052,154

)

 

 

(1,792,145

)

 

 

(1,985,706

)

 

 

(1,704,122

)

Net loss

 

 

(43,871

)

 

 

(42,141

)

 

 

(110,319

)

 

 

(130,164

)

Ending balance

 

 

(2,096,025

)

 

 

(1,834,286

)

 

 

(2,096,025

)

 

 

(1,834,286

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

 

34

 

 

 

1,525

 

 

 

36

 

 

 

297

 

Other comprehensive (loss) income

 

 

4

 

 

 

(45

)

 

 

2

 

 

 

1,183

 

Ending balance

 

 

38

 

 

 

1,480

 

 

 

38

 

 

 

1,480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity, ending balances

 

$

564,838

 

 

$

663,013

 

 

$

564,838

 

 

$

663,013

 

 

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

 

5


 

 

ACADIA PHARMACEUTICALS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Organization and Business

Acadia Pharmaceuticals Inc. (the Company), based in San Diego, California, is a biopharmaceutical company focused on the development and commercialization of innovative medicines to address unmet medical needs in central nervous system disorders. The Company was originally incorporated in Vermont in 1993 as Receptor Technologies, Inc. and reincorporated in Delaware in 1997.

In April 2016, the U.S. Food and Drug Administration (FDA) approved the Company’s first drug, NUPLAZID® (pimavanserin), for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis (PDP). NUPLAZID became available for prescription in the United States in May 2016.

2. Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company should be read in conjunction with the audited financial statements and notes thereto as of and for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K (Annual Report) filed with the Securities and Exchange Commission (the SEC). The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements reflect all adjustments (consisting of normal recurring adjustments) that are necessary for a fair statement of the financial position, results of operations, cash flows, and stockholders’ equity for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ materially from those estimates.

 

Risk and Uncertainties

The global pandemic resulting from the disease known as COVID-19, caused by a novel strain of coronavirus, SARS-CoV-2, has caused national and global economic and financial market disruptions and has adversely impacted the Company’s business. Sales of NUPLAZID in the first half of 2021 were negatively impacted by ongoing conditions related to the COVID-19 pandemic. At this time the Company cannot predict the magnitude of the pandemic or the full impact that it may have on the Company’s financial condition, operations, suppliers, and workforce.

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the statement of cash flows that sum to the total of the same such amounts shown in the statement of cash flows (in thousands):

 

 

 

Six Months Ended June 30, 2021

 

 

Six Months Ended June 30, 2020

 

 

 

Beginning of

period

 

 

End of

period

 

 

Beginning of

period

 

 

End of

period

 

Cash and cash equivalents

 

$

326,028

 

 

$

266,956

 

 

$

189,680

 

 

$

310,441

 

Restricted cash

 

 

5,770

 

 

 

5,770

 

 

 

4,787

 

 

 

5,770

 

Total cash, cash equivalents and restricted cash shown in

   the statement of cash flows

 

$

331,798

 

 

$

272,726

 

 

$

194,467

 

 

$

316,211

 

 

6


 

 

Accounts Receivable

Accounts receivable are recorded net of customer allowances for distribution fees, prompt payment discounts, chargebacks, and credit losses. Allowances for distribution fees, prompt payment discounts and chargebacks are based on contractual terms. The Company estimated the current expected credit losses of its accounts receivable by assessing the risk of loss and available relevant information about collectability, including historical credit losses, existing contractual payment terms, actual payment patterns of its customers, individual customer circumstances, and reasonable and supportable forecast of economic conditions expected to exist throughout the contractual life of the receivable. The Company has not historically experienced significant credit losses. Based on its assessment, as of June 30, 2021 the Company determined that an allowance for credit loss was not required.

License Fees and Royalties

The Company expenses amounts paid to acquire licenses associated with products under development when the ultimate recoverability of the amounts paid is uncertain and the technology has no alternative future use when acquired. Acquisitions of technology licenses are charged to expense or capitalized based upon management’s assessment regarding the ultimate recoverability of the amounts paid and the potential for alternative future use. The Company has determined that technological feasibility for its product candidates is reached when the requisite regulatory approvals are obtained to make the product available for sale.

In connection with the FDA approval of NUPLAZID in April 2016, the Company made a one-time milestone payment of $8.0 million pursuant to its 2006 license agreement with the Ipsen Group in which the Company licensed certain intellectual property rights that complement its patent portfolio for its serotonin platform, including NUPLAZID. The Company capitalized the $8.0 million payment as an intangible asset and is amortizing the asset on a straight-line basis over the estimated useful life of the licensed patents through the second half of 2021. The Company recorded amortization expense related to its intangible asset of $0.4 million and $0.7 million for each of the three and six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, estimated future amortization expense related to the Company’s intangible asset was $0.4 million for the remainder of 2021.

Royalties incurred in connection with the Company’s license agreement with the Ipsen Group, as disclosed in Note 9, Commitments and Contingencies, are expensed to license fees and royalties as revenue from product sales is recognized.

3. Net Loss Per Share

Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common stock equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, stock options, employee stock purchase plan rights, restricted stock units, and warrants are considered to be common stock equivalents but are not included in the calculations of diluted net loss per share for the periods presented as their effect would be anti-dilutive. The Company incurred net losses for all periods presented and there were no reconciling items for potentially dilutive securities. More specifically, at June 30, 2021 and 2020, stock options, employee stock purchase plan rights, restricted stock units, and warrants totaling approximately 19,489,000 shares and 19,930,000 shares, respectively, were excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive.

4. Stock-Based Compensation

The following table summarizes the total stock-based compensation expense included in the Company’s statements of operations for the periods presented (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cost of product sales

 

$

423

 

 

$

743

 

 

$

586

 

 

$

1,592

 

Research and development

 

 

7,319

 

 

 

7,235

 

 

 

12,149

 

 

 

15,692

 

Selling, general and administrative

 

 

14,263

 

 

 

11,529

 

 

 

22,454

 

 

 

24,571

 

 

 

$

22,005

 

 

$

19,507

 

 

$

35,189

 

 

$

41,855

 

7


 

 

The fair value of each employee stock option and each employee stock purchase plan right granted is estimated on the grant date under the fair value method using the Black-Scholes valuation model, which requires the Company to make a number of assumptions including the estimated expected life of the award and related volatility. The fair value of restricted stock units is estimated based on the market price of the Company’s common stock on the date of grant. The estimated fair values of stock options, purchase plan rights, and restricted stock units are then expensed over the vesting period. Performance-based stock awards vest upon the achievement of certain pre-defined company-specific performance-based criteria. Expense related to these performance-based stock awards is generally recognized ratably over the expected performance period once the pre-defined performance-based criteria for vesting becomes probable. During the six months ended June 30, 2021, the Company had a change in estimate related to the achievement of certain performance-based criteria for performance-based stock awards which resulted in a reduction in stock-based compensation expenses by approximately $6.1 million.

5. Balance Sheet Details

Inventory consisted of the following (in thousands):

 

 

 

June 30,

2021

 

 

December 31,

2020

 

Finished goods

 

$

2,094

 

 

$

1,453

 

Work in process

 

 

7,188

 

 

 

6,367

 

Raw material

 

 

1,504

 

 

 

1,862

 

 

 

$

10,786

 

 

$

9,682

 

Accrued liabilities consisted of the following (in thousands):

 

 

 

June 30,

2021

 

 

December 31,

2020

 

Accrued compensation and benefits

 

$

21,291

 

 

$

25,811

 

Accrued research and development services

 

 

20,940

 

 

 

28,380

 

Accrued consulting and professional fees

 

 

15,952

 

 

 

18,969

 

Accrued sales allowances

 

 

12,512

 

 

 

14,115

 

Current portion of lease liabilities

 

 

7,521

 

 

 

5,087

 

Current portion of accrued branded prescription drug fees

 

 

5,203

 

 

 

1,845

 

Other

 

 

2,844

 

 

 

3,267

 

 

 

$

86,263

 

 

$

97,474

 

 

6. Investments

The carrying value and amortized cost of the Company’s investments, summarized by major security type, consisted of the following (in thousands):

 

 

 

June 30, 2021

 

 

 

Amortized

Cost

 

 

Unrealized

Gains

 

 

Unrealized

Losses

 

 

Estimated

Fair

Value

 

U.S. Treasury notes

 

$

99,470

 

 

$

11

 

 

$

(1

)

 

$

99,480

 

Government sponsored enterprise securities

 

 

20,002

 

 

 

 

*

 

(1

)

 

 

20,001

 

Municipal bonds

 

 

6,618

 

 

 

 

 

 

(3

)

 

 

6,615

 

Commercial paper

 

 

163,843

 

 

 

26

 

 

 

(3

)

 

 

163,866

 

 

 

$

289,933

 

 

$

37

 

 

$

(8

)

 

$

289,962

 

8


 

 

 

 

 

December 31, 2020

 

 

 

Amortized

Cost

 

 

Unrealized

Gains

 

 

Unrealized

Losses

 

 

Estimated

Fair

Value

 

U.S. Treasury notes

 

$

205,111

 

 

$

6

 

 

$

(27

)

 

$

205,090

 

Government sponsored enterprise securities

 

 

10,004

 

 

 

 

 

 

(5

)

 

 

9,999

 

Corporate debt securities

 

 

52,341

 

 

 

47

 

 

 

 

*

 

52,388

 

Commercial paper

 

 

38,443

 

 

 

21

 

 

 

(11

)

 

 

38,453

 

 

 

$

305,899

 

 

$

74

 

 

$

(43

)

 

$

305,930

 

_______________________

 

*

Unrealized gain or loss was less than $500.

 

The Company has classified all of its available-for-sale investment securities as current assets on its consolidated balance sheets based on the highly liquid nature of the investment securities and because these investment securities are considered available for use in current operations. The Company has classified all equity securities as other assets on its consolidated balance sheets.

At June 30, 2021 and December 31, 2020, the Company had 14 and 24 available-for-sale investment securities, respectively, in an unrealized loss position. The following table presents gross unrealized losses and fair value for those available-for-sale investment securities that were in an unrealized loss position as of June 30, 2021 and December 31, 2020, aggregated by investment category and length of time that the individual securities have been in a continuous loss position (in thousands):

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

 

Estimated

Fair Value

 

 

Unrealized

Losses

 

 

Estimated

Fair Value

 

 

Unrealized

Losses

 

 

Estimated

Fair Value

 

 

Unrealized

Losses

 

 

June 30, 2021