Note 5: Cash Equivalents and Short-Term Investments

Short-term investments as of June 30, 2021 consist of government money market funds and commercial paper. A portion of short-term investments is included in cash and cash equivalents due to its original maturity of three months or less when acquired. In accordance with FASB ASC Topic 320, “Investments – Debt and Equity Securities,” the Company has classified its entire investment portfolio as available-for-sale securities with secondary or resale markets, and, as such, its portfolio is reported at fair value with unrealized gains and losses included in Comprehensive Income in stockholders’ equity and realized gains and losses included in other income/expense, if applicable. The following is a summary of cash equivalents and short-term investments:

Short-term investments are included in cash and cash equivalents when their original maturities are three months or less when acquired. As of June 30, 2021 and December 31, 2020, the Company’s cash equivalents and short-term investments had maturities of one to four months. To derive the fair value of its commercial paper, the Company uses benchmark inputs and industry standard analytical models.