Note 2 - Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]

2. Fair Value of Financial Instruments

Financial instruments (principally cash and cash equivalents, accounts receivable, accounts payable and accrued expenses) are carried at cost, which approximates fair value due to the short-term maturity of these instruments. The Company’s long-term credit facility is carried at cost, which, due to the variable interest rate associated with the revolving credit facility, approximates its fair value. The Company has

no

Level

1

or Level

2

financial instruments and there were

no

transfers between Level

1

or Level

2

financial instruments. Included in Other liabilities on the unaudited Consolidated Balance Sheets at

June 30, 2018

is a

$35,000

contingent consideration liability classified as Level

3

which remains unchanged from

December 31, 2017.

The liability is valued using a Monte Carlo simulation and includes unobservable inputs such as expected levels of revenues and discount rates. Changes in the unobservable inputs of this instrument could result in a significant change in the fair value measurement.