Note 2 - Investment Securities

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Cash, Cash Equivalents, and Marketable Securities [Text Block]

NOTE

2

-INVESTMENT SECURITIES

The following tables summarize cash, cash equivalents and marketable securities (in thousands):

	December 31,
	201 9		201 8
Cash and cash equivalents:
Cash	$	20,005	$	21,969
Cash equivalents:
Money market funds		6,311		4,083
Total cash and cash equivalents		26,316		26,052
Marketable securities:
U.S. government notes		4,114		1,397
U.S. government agencies		—		2,677
Municipal securities		—		200
Commercial paper		3,491		2,433
Corporate debt securities		—		2,816
Total marketable securities		7,605		9,523
Total cash, cash equivalents and marketable securities	$	33,921	$	35,575

The following tables summarize the components, and the unrealized gains and losses position, related to the Company’s cash, cash equivalents and marketable investments (in thousands) as of

December 31, 2019

and

December 31, 2018: (

in thousands):

December 31, 201 9	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Cash and cash equivalents	$	26,316	$	-	$	-	$	26,316
Marketable investments
U.S. government notes		4,114		-		-		4,114
U.S. government agencies		—		-		-		—
Municipal securities		—		-		-		—
Commercial paper		3,491		-		-		3,491
Corporate debt securities		—		-		-		—
Total marketable securities		7,605		-		-		7,605
Total cash, cash equivalents and marketable securities	$	33,921	$	-	$	-	$	33,921

December 31, 2018	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents	$	26,052	$	-	$	-		$	26,052
Marketable investments
U.S. government notes		1,397		-		-			1,397
U.S. government agencies		2,677		-		-			2,677
Municipal securities		200		-		-			200
Commercial paper		2,433		-		-			2,433
Corporate debt securities		2,825		-		(9	)		2,816
Total marketable securities		9,532				(9	)		9,523
Total cash, cash equivalents and marketable securities	$	35,584			$	(9	)	$	35,575

As of

December 31 2019

and

December 31, 2018,

the gross unrealized gains and losses were

nil

and $(

9,000

), respectively, and were related to interest rate changes on available-for-sale marketable investments. The Company has concluded that it is more-likely-than-

not

that the securities will be held until maturity or the recovery of their cost basis.

No

securities were in an unrealized loss position for more than

12

months. The Company determined these unrealized losses to be temporary. Factors considered in determining whether a loss is temporary included the length of time and extent to which the investment’s fair value has been less than the cost basis; the financial condition and near-term prospects of the investee; extent of the loss related to credit of the issuer; the expected cash flows from the security; the Company’s intent to sell the security; and whether or

not

the Company will be required to sell the security before the recovery of its amortized cost.

The following table summarizes the contractual maturities of the Company’s available-for-sale securities, classified as marketable investments as of

December 31, 2019 (

in thousands):

	Amount
Due in less than one year	$	7,605
Due in 1 to 3 years		—
Total marketable securities	$	7,605

Fair Value Measurements

As of

December 31, 2019,

financial assets measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above were as follows (in thousands):

December 31, 201 9	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	6,311	$	-	$	-	$	6,311
Short term marketable investments:
Available-for-sale securities		4,114		3,491		-		7,605
Total assets at fair value	$	10,425	$	3,491	$	-	$	13,916

December 31, 2018 *	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	4,083	$	-	$	-	$	4,083
Short term marketable investments:
Available-for-sale securities		4,274		5,249		-		9,523
Total assets at fair value	$	8,357	$	5,249	$	-	$	13,606

*The

2018

presentation in the table above has been revised to reflect as Level

1

$4,274

of US Government Notes included within Available for Sale Securities and previously classified as Level

2.

Money market funds and U.S. Treasury bills are highly liquid investments and are actively traded. The pricing information on these investment instruments are readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level

1

of the fair value hierarchy.

Corporate debt, U.S. government-backed securities, and commercial paper are measured at fair value using Level

2

inputs. The Company reviews trading activity and pricing for these investments as of each measurement date. When sufficient quoted pricing for identical securities is

not

available, the Company uses market pricing and other observable market inputs for similar securities obtained from various

third

party data providers. These inputs represent quoted prices for similar assets in active markets or these inputs have been derived from observable market data. This approach results in the classification of these securities as Level

2

of the fair value hierarchy. The average remaining maturity of the Company’s Level

2

investments as of

December 31, 2019

is

0.2

years and all of these investments are rated by S&P and Moody’s at A or better. The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There were

no

transfers within the hierarchy during the year ended

December 31, 2019

and

December 31, 2018.