Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.20.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements

5. FAIR VALUE MEASUREMENTS

Assets and liabilities recorded at fair value in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. For certain of our financial instruments including amounts receivable and accounts payable the carrying values approximate fair value due to their short-term nature.

ASC 820 “Fair Value Measurements and Disclosures” specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. In accordance with ASC 820, these inputs are summarized in the three broad levels listed below:

 

•

Level 1 – Quoted prices in active markets for identical securities.

 

•

Level 2 – Other significant inputs that are observable through corroboration with market data (including quoted prices in active markets for similar securities).

 

•

Level 3 – Significant unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability.

As quoted prices in active markets are not readily available for certain financial instruments, we obtain estimates for the fair value of financial instruments through third-party pricing service providers.

In determining the appropriate levels, we performed a detailed analysis of the assets and liabilities that are subject to ASC 820.

We invest our excess cash in accordance with investment guidelines that limit the credit exposure to any one financial institution other than securities issued by the U.S. Government. These securities are not collateralized and mature within one year.

A description of the valuation techniques applied to our financial instruments measured at fair value on a recurring basis follows.

Financial Instruments

Cash

Significant amounts of cash are held on deposit with large well-established U.S. and Canadian financial institutions.

Money Market Securities

Money market securities are classified within Level I of the fair value hierarchy and are valued based on quoted prices in active markets for identical securities.

The following table presents information about our assets that are measured at fair value on a recurring basis, and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair value (in thousands):

 

June 30, 2020

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

1,102

 

 

$

—

 

 

$

—

 

 

$

1,102

 

Money market securities (cash equivalents)

 

 

11,009

 

 

 

—

 

 

 

—

 

 

 

11,009

 

Restricted cash

 

 

50

 

 

 

—

 

 

 

—

 

 

 

50

 

Total assets

 

$

12,161

 

 

$

—

 

 

$

—

 

 

$

12,161

 

 

Cash and cash equivalents consist of the following (in thousands):

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Estimated

 

June 30, 2020

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

Cash

 

$

1,102

 

 

$

—

 

 

$

—

 

 

$

1,102

 

Money market securities

 

 

11,009

 

 

 

—

 

 

 

—

 

 

 

11,009

 

Total cash and cash equivalents

 

$

12,111

 

 

$

—

 

 

$

—

 

 

$

12,111

 

Money market securities (restricted cash)

 

 

50

 

 

 

—

 

 

 

—

 

 

 

50

 

Total restricted cash

 

$

50

 

 

$

—

 

 

$

—

 

 

$

50

 

 

We only invest in A (or equivalent) rated securities. All securities included in cash and cash equivalents had maturities of 90 days or less at the time of purchase.