; ForgeRock, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Cash Equivalents and Short-Term Investments

v3.22.4
Cash Equivalents and Short-Term Investments
 12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Cash Equivalents and Short-Term Investments Cash Equivalents and Short-Term Investments
The amortized cost, unrealized loss and estimated fair value of the Company’s cash equivalents and short-term investments as of December 31, 2022 and 2021 were as follows (in thousands):
December 31, 2022
Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value
Cash Equivalents:
Money market funds $ 91,376  $ —  $ —  $ 91,376 
Total cash equivalents 91,376  —  —  91,376 
Short-term investments
Commercial paper 47,840  —  —  47,840 
U.S. treasury bonds 44,154  —  (742) 43,412 
Asset-backed securities 17,623  —  (425) 17,198 
Corporate debt securities 99,599  1  (802) 98,798 
Short-term investments 209,216  1  (1,969) 207,248 
Total $ 300,592  $ 1  $ (1,969) $ 298,624 
December 31, 2021
Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value
Cash Equivalents:
Money market funds $ 98,333  $ —  $ —  $ 98,333 
Total cash equivalents 98,333  —  —  98,333 
Short-term investments
Commercial paper 78,448  —  —  $ 78,448 
U.S. treasury bonds 26,444  —  (152) 26,292 
Asset-backed securities 51,745  —  (158) 51,587 
Corporate debt securities 85,365  —  (281) 85,084 
Short-term investments 242,002  —  (591) 241,411 
Total $ 340,335  $ —  $ (591) $ 339,744 
The Company had $91.4 million in money market funds and $209.2 million in short-term investments at December 31, 2022.
The following tables present the contractual maturities of the Company’s short-term investments as of December 31, 2022 and 2021 (in thousands):
December 31, 2022
Amortized Cost Estimated Fair Value
Due within one year $ 209,216  $ 207,248 
Due between one to five years —  — 
Total $ 209,216  $ 207,248 
December 31, 2021
Amortized Cost Estimated Fair Value
Due within one year $ 142,950  $ 142,868 
Due between one to five years 99,052  98,543 
Total $ 242,002  $ 241,411 
As of December 31, 2022, the Company did not have any unsettled purchases or unsettled maturities of short-term investments.
The following table presents the breakdown of the short-term investments that have been in a continuous unrealized loss position aggregated by investment category, as of December 31, 2022.
December 31, 2022
Less than 12 months More than 12 months Total
Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses
Cash Equivalents:
Money market funds $ 91,376  $ —  $ —  $ —  $ 91,376  $ — 
Total cash equivalents 91,376  —  —  —  91,376  — 
Short-term investments
Commercial paper 47,840  —  —  —  47,840  — 
U.S. Treasury bonds 17,593  (82) 25,819  (660) 43,412  (742)
Asset-backed securities 5,667  (38) 11,531  (387) 17,198  (425)
Corporate debt securities 57,371  (283) 41,427  (519) 98,798  (802)
Short-term investments 128,471  (403) 78,777  (1,566) 207,248  (1,969)
Total $ 219,847  $ (403) $ 78,777  $ (1,566) $ 298,624  $ (1,969)
The Company had short-term investments with a market value of $156.4 million and $163.0 million in unrealized loss positions as of December 31, 2022 and 2021. Gross unrealized losses from available-for-sale securities were $2.0 million and $0.6 million as of December 31, 2022 and 2021, from 33 and 38 investment positions, respectively. There were no material gross unrealized gains or losses from available-for-sale securities and no material realized gains or losses from available-for-sale securities that were reclassified out of accumulated other comprehensive income for the year ended December 31, 2022 and 2021.
For available-for-sale debt securities that have unrealized losses, the Company evaluates whether (i) the Company has the intention to sell any of these investments, (ii) it is not more likely than not that the Company will be required to sell any of these available-for-sale debt securities before recovery of the entire amortized cost basis and (iii) the decline in the fair value of the investment is due to credit or non-credit related factors. The credit ratings associated with the corporate notes and obligations are mostly unchanged, are highly rated and the issuers continue to make timely principal and interest payments. Based on this evaluation, the Company determined that for short-term investments, there were no material credit or non-credit related impairments as of December 31, 2022 and 2021.