Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements

v3.20.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 5 - Fair Value Measurements

 

The Company uses the fair value hierarchy to measure the value of its financial instruments. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources, while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. The basis for fair value measurements for each level within the hierarchy is described below:

 

● Level 1 – Quoted prices for identical assets or liabilities in active markets.
   
● Level 2 – Quoted prices for identical or similar assets and liabilities in markets that are not active; or other model-derived valuations whose inputs are directly or indirectly observable or whose significant value drivers are observable.
   
● Level 3 – Valuations derived from valuation techniques in which one or more significant inputs to the valuation model are unobservable and for which assumptions are used based on management estimates.

 

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.

 

The carrying amounts of certain cash and cash equivalents, current portion of restricted cash, accounts receivable, prepaid expenses, accounts payable, current portion of lease liability and accrued expenses approximate fair value due to the short-term nature of these instruments.

 

A summary of the assets and liabilities carried at fair value in accordance with the hierarchy defined above is as follows (in thousands):

 

          Fair Value Hierarchy  
December 31, 2019   Total     (Level 1)     (Level 2)     (Level 3)  
Assets                        
Cash and cash equivalents   $ 22,170     $ 22,170     $ —     $ —  
Marketable Securities:                                
U.S. Treasury Bonds     4,002       4,002       —       —  
Corporate Debt Securities     1,603       —       1,603       —  
Total   $ 27,775     $ 26,172     $ 1,603     $ —  

 

Cash and cash equivalents consisted of cash in bank checking and savings accounts, money market funds and U.S. treasury bonds and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices for identical assets in active markets. Marketable securities consisting of corporate debt securities are classified as Level 2 and are valued using quoted market prices in markets that are not active.

 

The Company had no marketable securities for the year ended December 31, 2018 and cash and cash equivalents consisted of cash in bank checking and savings accounts.