Company: INSP
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001609550-25-000020
Chunk: 65

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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, 2024EstimatedFair ValueLevel 1Level 2Level 3Cash equivalents:Money market funds$59,606 $59,606 $— $— Total cash equivalents59,606 59,606 — — Investments:Commercial paper19,831 — 19,831 — Corporate debt securities71,224 — 71,224 — Certificates of deposit7,694 — 7,694 — Asset-backed securities287 — 287 — U.S. government securities267,355 267,355 — — Total investments366,391 267,355 99,036 — Total cash equivalents and investments$425,997 $326,961 $99,036 $— There were no transfers between levels during the periods ended March 31, 2025 and December 31, 2024.Concentration of Credit RiskFinancial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash equivalents, investments, and accounts receivable. We maintain the majority of our cash and cash equivalents in accounts with major U.S. and multi-national financial institutions, and our deposits at certain of these institutions exceed insured limits. Market conditions can impact the viability of these institutions. In the event of failure of any of the financial institutions where we maintain our cash and cash equivalents, there can be no assurance that we will be able to access uninsured funds in a timely manner or at all.Our investment policy limits investments to certain types of debt securities issued by the U.S. government and its agencies, corporations with investment-grade credit ratings, or commercial paper and money market funds issued by the highest quality financial and non-financial companies. We place restrictions on maturities and concentration by type and issuer. We are exposed to credit risk in the event of a default by the issuers of these securities to the extent recorded on the consolidated balance sheets. However, as of March 31, 2025 and December 31, 2024, we limited our credit risk associated with cash equivalents by placing investments with banks we believe are highly creditworthy.We believe that the credit risk in our accounts receivable is mitigated by our credit evaluation process, relatively short collection terms, and dispersion of our customer base. We generally do not require collateral, and losses on accounts receivable have historically not been significant.Accounts Receivable and Allowance for Expected Credit LossesTrade accounts receivable are recorded at the invoiced