Company: APPF
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001433195-25-000105
Chunk: 46

Company: APPFOLIO INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 46
---
 we do not have significant influence over Second Nature, and our investment in Second Nature has been classified as an investment in equity securities without readily determinable fair value.There were no realized or unrealized gains or losses from remeasurement of investments in equity securities under the measurement alternative for the six months ended June 30, 2025 and 2024.Fair Value MeasurementsRecurring Fair Value MeasurementsThe following tables present our financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024 by level within the fair value hierarchy (in thousands):June 30, 2025Level 1Level 2Total FairValueCash equivalents:Money market funds$47,917 $— $47,917 Available-for-sale investment securities:   U.S. government and agency securities— 54,088 54,088 Total$47,917 $54,088 $102,005 December 31, 2024Level 1Level 2Total FairValueCash equivalents:Money market funds$25,167 $— $25,167 Available-for-sale investment securities:U.S. government and agency securities— 235,745 235,745 Total$25,167 $235,745 $260,912 The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short maturity of these items.Fair value for our Level 1 investment securities is based on market prices for identical assets. Our Level 2 securities were priced by a pricing vendor. The pricing vendor utilizes the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, other observable inputs like market transactions involving comparable securities are used.Strategic Investments Measured and Recorded at Fair Value on a Non-Recurring BasisStrategic investments primarily include equity investments in privately-held companies, which do not have a readily determinable fair value. Strategic investments are classified as Level 3 in the fair value hierarchy, as their nonrecurring fair value measurements may include observable and unobservable inputs. As of June 30, 2025 and December 31, 2024, the balance of strategic investments was $77.0 million and $2.0 million, respectively.

13

 4. Accrued Employee Expenses

Accrued employee expenses consisted of the following (in thousands): June 30,