Fair Value Measurements |
9 Months Ended |
|---|---|
Sep. 30, 2021 | |
| Fair Value Measurements [Abstract] | |
| Fair Value Measurements | NOTE 13 – FAIR VALUE MEASUREMENTS The accounting guidance establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. Level 2 – Observable inputs such as quoted prices for similar instruments and quoted prices in markets that are not active, and inputs that are directly observable or can be corroborated by observable market data. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, such as treasury securities with pricing interpolated from recent trades of similar securities, or priced with models using highly observable inputs, such as commodity options priced using observable forward prices and volatilities. Level 3 – Significant inputs to pricing that have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as the complex and subjective models and forecasts used to determine the fair value of financial instruments. Financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020, are summarized below: September 30, 2021 Level 1 Level 2 Level 3 Total Fair ValueCash equivalents: Money Market Funds$ 33,138,000 $ — $ — $ 33,138,000Subtotal 33,138,000 — — 33,138,000 Short-term investments: Corporate Notes/Bonds — 2,861,000 — 2,861,000Subtotal — 2,861,000 — 2,861,000 Long-term investments: Corporate Notes/Bonds — 2,794,000 — 2,794,000Convertible debt — — 250,000 250,000Subtotal — 2,794,000 250,000 3,044,000 Total$ 33,138,000 $ 5,655,000 $ 250,000 $ 39,043,000 December 31, 2020 Level 1 Level 2 Level 3 Total Fair ValueCash equivalents: Money Market Funds$ 9,424,000 $ — $ — $ 9,424,000Subtotal 9,424,000 — — 9,424,000 Short-term investments: Commercial Paper — 700,000 — 700,000Corporate Notes/Bonds — 2,059,000 — 2,059,000Subtotal — 2,759,000 — 2,759,000 Long-term investments: Corporate Notes/Bonds — 5,605,000 — 5,605,000Convertible debt — — 605,000 605,000Subtotal — 5,605,000 605,000 6,210,000 Current Liabilities: Contingent Consideration — — (550,000) (550,000)Subtotal — — (550,000) (550,000) Total$ 9,424,000 $ 8,364,000 $ 55,000 $ 17,843,000 The estimated fair value of contingent consideration as of December 31, 2020 was $550,000, as noted above. The estimated fair value is considered a level 3 measurement because the probability weighted discounted cash flow methodology used to estimate fair value includes the use of significant unobservable inputs, primarily the contractual contingent consideration revenue targets and assumed probabilities. The Company paid the full amount of the contingent consideration during the first quarter of 2021 and there was no liability at September 30, 2021. We record transfers between levels of the fair value hierarchy, if necessary, at the end of the reporting period. There were no transfers between levels during the three months ended September 30, 2021. |