ForgeRock, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Cash Equivalents and Short-Term Investments

Cash Equivalents and Short-Term Investments

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

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 March 31, 2022 and December 31, 2021 were as follows (in thousands):


	March 31, 2022
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Cash Equivalents:
Money market funds	$	58,121	$	—	$	—	$	58,121



Total cash equivalents	58,121		—		—		58,121
Short-term investments
Commercial paper	76,286		—		—		76,286
Asset-backed securities	46,722		—		(520)		46,202
Corporate debt securities	90,509		—		(1,006)		89,503
U.S. Treasury bonds	61,545		—		(751)		60,794
Short-term investments	275,062		—		(2,277)		272,785
Total	$	333,183	$	—	$	(2,277)	$	330,906


	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
Asset-backed securities	51,745		—		(158)		51,587
Corporate debt securities	85,365		—		(281)		85,084
U.S. treasury bonds	26,444		—		(152)		26,292
Short-term investments	242,002		—		(591)		241,411
Total	$	340,335	$	—	$	(591)	$	339,744

All short-term investments were designated as available-for-sale securities as of March 31, 2022 and December 31, 2021.

The following table presents the contractual maturities of the Company’s short-term investments as of March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022
	Amortized Cost		Estimated Fair Value
Due within one year	$	186,545	$	185,811
Due between one to five years	88,517		86,974
Total	$	275,062	$	272,785


	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 March 31, 2022, the Company did not have any unsettled purchases or unsettled maturities of short-term investments.

The Company had short-term investments with a market value of $194.3 million in unrealized loss positions as of March 31, 2022. The Company has not incurred unrealized losses for greater than 12 months on its short-term investments. Gross unrealized losses from available-for-sale securities were $2.3 million as of March 31, 2022 and no realized gains or losses from available-for-sale securities that were reclassified out of accumulated other comprehensive income for the three months ended March 31, 2022.

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 March 31, 2022.