Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.21.2
Fair Value Measurements
 9 Months Ended
Sep. 30, 2021
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, marketable securities, prepaid expenses and other current assets, 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:

 

          Fair Value Hierarchy  
September 30, 2021   Total     (Level 1)     (Level 2)     (Level 3)  
Assets                                
Marketable Securities:                                
U.S. Treasury Bonds   $ 3,505     $ 3,505     $ -     $ -  
U.S. Government Notes     16,010       -       16,010       -  
Corporate Debt Securities     9,142       -       9,142       -  
State and Municipal Bonds     250       -       250       -  
Total   $ 28,907     $ 3,505     $ 25,402     $ -  

 

          Fair Value Hierarchy  
December 31, 2020   Total     (Level 1)     (Level 2)     (Level 3)  
Assets                        
Marketable Securities:                                
U.S. Treasury Bonds   $ 18,429     $ 18,429     $ -     $ -  
U.S. Government Notes     22,230       -       22,230       -  
Corporate Debt Securities     4,306       -       4,306       -  
State and Municipal Bonds     1,282       -       1,282       -  
Total   $ 46,247     $ 18,429     $ 27,818     $ -  

 

U.S. treasury bonds 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 U.S. government notes, corporate debt securities and state and municipal bonds are classified as Level 2 and are valued using quoted market prices in markets that are not active.