; 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

v3.23.1
Cash Equivalents and Short-Term Investments
 3 Months Ended
Mar. 31, 2023
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 March 31, 2023 and December 31, 2022 were as follows (in thousands):
March 31, 2023
Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value
Cash equivalents:
Money market funds $ 106,319  $ —  $ —  $ 106,319 
Total cash equivalents 106,319  —  —  106,319 
Short-term investments
Commercial paper 64,069  104  (63) 64,110 
Asset-backed securities 17,080  —  (278) 16,802 
Corporate debt securities 68,832  9  (313) 68,528 
U.S. treasury bonds 42,735  1  (432) 42,303 
Short-term investments 192,716  113  (1,086) 191,743 
Total $ 299,035  $ 113  $ (1,086) $ 298,062 


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 
Asset-backed securities 17,623  —  (425) 17,198 
Corporate debt securities 99,599  1  (802) 98,798 
U.S. treasury bonds 44,154  —  (742) 43,411 
Short-term investments 209,216  1  (1,969) 207,248 
Total $ 300,592  $ 1  $ (1,969) $ 298,624 

All short-term investments were designated as available-for-sale securities as of March 31, 2023 and December 31, 2022.

The following table presents the contractual maturities of the Company’s short-term investments as of March 31, 2023 and December 31, 2022 (in thousands):
March 31, 2023
Amortized Cost Estimated Fair Value
Due within one year
 $ 170,626  $ 169,923 
Due between one to five years
 22,090  21,820 
Total $ 192,716  $ 191,743 

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 
As of March 31, 2023, 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 March 31, 2023.

March 31, 2023
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 $ 106,319  $ —  $ —  $ —  $ 106,319  —  $ — 
Total cash equivalents 106,319  —  —  —  106,319  — 
Short-term investments
Commercial paper 64,110  (63) —  —  64,110  (63)
Asset-backed securities 5,206  (33) 11,596  (245) 16,802  (278)
Corporate debt securities 36,271  (73) 32,257  (240) 68,528  (313)
U.S. treasury bonds 16,193  (54) 26,110  (378) 42,303  (432)
Short-term investments 121,780  (223) 69,963  (863) 191,743  (1,086)
Total $ 228,099  $ (223) $ 69,963  $ (863) $ 298,062  $ (1,086)

The Company had short-term investments with a market value of $191.7 million in unrealized loss positions as of March 31, 2023. Gross unrealized losses from available-for-sale securities were $1.1 million as of March 31, 2023 and realized losses from available-for-sale securities that were reclassified out of accumulated other comprehensive income were $0.6 million for the three months ended March 31, 2023.

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. Subsequent to the balance sheet date, the Company sold all of its marketable securities and converted them into money market funds and U.S. treasury bonds. The sale of securities was completed in April and resulted in a realized loss of $0.6 million.