Annual report pursuant to Section 13 and 15(d)

Cash, Cash Equivalents and Short-Term Investments

v3.19.3.a.u2
Cash, Cash Equivalents and Short-Term Investments
12 Months Ended
Dec. 31, 2019
Cash And Cash Equivalents [Abstract]  
Cash, Cash Equivalents and Short-Term Investments

(2)

Cash, Cash Equivalents and Short-Term Investments

The following tables show the Company’s cash and cash equivalents and short-term investments by significant investment category as of December 31 (in thousands):

 

 

 

2019

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Estimated

Fair Value

 

 

Cash and

Cash

Equivalents

 

 

Short-Term

Investments

 

Cash

 

$

3,950

 

 

$

 

 

$

 

 

$

3,950

 

 

$

3,950

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

 

5,500

 

 

 

 

 

 

 

 

 

5,500

 

 

 

5,500

 

 

 

 

U.S. treasury securities

 

 

3,078

 

 

 

2

 

 

 

(1

)

 

 

3,079

 

 

 

 

 

 

3,079

 

Subtotal

 

 

8,578

 

 

 

2

 

 

 

(1

)

 

 

8,579

 

 

 

5,500

 

 

 

3,079

 

Level 2(2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

8,920

 

 

 

 

 

 

 

 

 

8,920

 

 

 

747

 

 

 

8,173

 

Corporate debt obligations

 

 

5,922

 

 

 

5

 

 

 

(1

)

 

 

5,926

 

 

 

 

 

 

5,926

 

Repurchase agreements

 

 

3,000

 

 

 

 

 

 

 

 

 

3,000

 

 

 

3,000

 

 

 

 

Asset-backed securities

 

 

4,505

 

 

 

3

 

 

 

 

 

 

4,508

 

 

 

 

 

 

4,508

 

Subtotal

 

 

22,347

 

 

 

8

 

 

 

(1

)

 

 

22,354

 

 

 

3,747

 

 

 

18,607

 

Total

 

$

34,875

 

 

$

10

 

 

$

(2

)

 

$

34,883

 

 

$

13,197

 

 

$

21,686

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Estimated

Fair Value

 

 

Cash and

Cash

Equivalents

 

 

Short-Term

Investments

 

Cash

 

$

3,044

 

 

$

 

 

$

 

 

$

3,044

 

 

$

3,044

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

 

5,482

 

 

 

 

 

 

 

 

 

5,482

 

 

 

5,482

 

 

 

 

U.S. treasury securities

 

 

1,988

 

 

 

 

 

 

 

 

 

1,988

 

 

 

 

 

 

1,988

 

Subtotal

 

 

7,470

 

 

 

 

 

 

 

 

 

7,470

 

 

 

5,482

 

 

 

1,988

 

Level 2(2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

10,639

 

 

 

 

 

 

 

 

 

10,639

 

 

 

2,095

 

 

 

8,544

 

Corporate debt obligations

 

 

5,964

 

 

 

 

 

 

(7

)

 

 

5,957

 

 

 

 

 

 

5,957

 

Repurchase agreements

 

 

3,000

 

 

 

 

 

 

 

 

 

3,000

 

 

 

3,000

 

 

 

 

Asset-backed securities

 

 

3,682

 

 

 

 

 

 

(3

)

 

 

3,680

 

 

 

 

 

 

3,680

 

Subtotal

 

 

23,285

 

 

 

 

 

 

(10

)

 

 

23,276

 

 

 

5,095

 

 

 

18,181

 

Total

 

$

33,799

 

 

$

 

 

$

(10

)

 

$

33,790

 

 

$

13,621

 

 

$

20,169

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities.

(2)

Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

The Company’s investments were primarily valued based upon one or more valuations reported by its investment accounting and reporting service provider. The investment service provider values the securities using a hierarchical security pricing models that relies primarily on valuations provided by a third-party pricing vendor. Such valuations may be based on trade prices in active markets for identical assets or liabilities (Level 1 inputs) or valuation models using inputs that are observable either directly or indirectly (Level 2 inputs), such as quoted prices for similar assets or liabilities, yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures. The Company performs certain procedures to corroborate the fair value of its holdings, including comparing valuations obtained from its investment service provider with other pricing sources to validate the reasonableness of the valuations.

The Company typically invests in highly rated securities and its investment policy limits the amount of credit exposure to any one issuer. The policy requires investments in fixed income instruments denominated and payable in U.S. dollars only and requires investments to be investment grade, with a primary objective of minimizing the potential risk of principal loss.

As of December 31 the Company’s short-term investments in a continuous unrealized loss position for 12 months or less are as follows (in thousands):

 

Description of securities

 

Estimated fair value

 

 

Unrealized losses

 

2019

 

 

 

 

 

 

 

 

U.S. treasury securities

 

$

1,218

 

 

$

(1

)

Corporate debt obligations

 

 

1,428

 

 

 

(1

)

Asset-backed securities

 

 

753

 

 

 

 

Total

 

$

3,399

 

 

$

(2

)

 

 

 

 

 

 

 

 

 

2018

 

 

 

 

 

 

 

 

U.S. treasury securities

 

$

1,988

 

 

$

 

Corporate debt obligations

 

 

5,957

 

 

 

(7

)

Asset-backed securities

 

 

3,032

 

 

 

(3

)

Total

 

$

10,977

 

 

$

(10

)

 

The Company considers the declines in market value of its short-term investments to be temporary in nature. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as length of time and extent to which fair value has been below its cost basis; the financial condition of the issuer and any changes thereto; changes in market interest rates and the Company’s intent to sell; or whether it is more likely than not it will be required to sell the investment before recovery of the investment’s cost basis. As of December 31, 2019, the Company does not consider any of its investments to be other-than temporarily impaired.

The estimated fair value of contractual maturities of short-term investments as of December 31, 2019 is $21.7 million.