Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS AND FAIR VALUE MEASUREMENTS

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INVESTMENTS AND FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2024
Investments And Fair Value Measurements  
INVESTMENTS AND FAIR VALUE MEASUREMENTS

3. INVESTMENTS AND FAIR VALUE MEASUREMENTS

 

The Company invests its surplus funds in excess of operational and capital requirements in a diversified portfolio of marketable securities, with the objectives of delivering competitive returns while maintaining a high degree of liquidity.

 

A summary of our short-term investments as of September 30, 2024 and December 31, 2023, are as follows (in thousands):

 

    September 30, 2024     December 31, 2023  
             
U.S. treasury securities   $ 3,873     $ -  
Marketable debt securities     1,204       -  
Short-term investments   $ 5,077     $ -  

 

Marketable securities

 

Marketable securities as of September 30, 2024 consisted of the following:

 

(in thousands)   Cost of Amortized Cost     Unrealized Gains     Unrealized Losses     Fair Value  
                         
Marketable debt securities                                
U.S. treasury securities   $ 3,789     $ 84     $ -     $ 3,873  
Corporate bonds     1,179       25       -       1,204  
Total marketable debt securities   $ 4,968     $ 109     $ -     $ 5,077  

 

Fair Value Measurements

 

Our financial instruments include cash, prepaid expenses, accounts payable, and accrued liabilities. The fair value of cash, prepaid expenses, accounts payable and accrued liabilities approximate their carrying values due to their short-term nature, which are all considered Level 1. The fair value of long-term debt approximates its carrying value.

 

Our financial instruments measured at fair value on a recurring basis consisted of U.S. treasury securities, corporate bonds and derivatives (see Note 8). U.S. treasury securities are classified within Level 1 of the fair value hierarchy as they are valued based on quoted market price in an active market. Corporate bonds are valued based on quoted prices in markets that are less active and are generally classified within Level 2 of the fair value hierarchy. We did not hold Level 1 or Level 2 financial instruments as of December 31, 2023.

 

Financial instruments valued based on unobservable inputs which reflect the reporting entity’s own assumptions or data that market participants would use in valuing an instrument are generally classified within Level 3 of the fair value hierarchy. We did not hold Level 3 financial instruments as of September 30, 2024, and December 31, 2023.

 

Financial instruments measured at fair value on a recurring basis as of September 30, 2024 are classified based on the valuation technique in the table below:

 

Fair Value Measurements Using 

 

(in thousands)   Quoted Prices in Active Markets for Identical Assets (Level 1)     Significant Other Observable Inputs (Level 2)     Significant Unobservable Inputs (Level 3)     Total  
                                 
Marketable debt securities                                
U.S. treasury securities   $ 3,873     $ -     $      -     $ 3,873  
Corporate bonds     -       1,204       -       1,204  
Total marketable debt securities   $ 3,873     $ 1,204     $ -     $ 5,077