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Investment Securities and Fair Value Measurements
 9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Investment Securities and Fair Value Measurements Investment Securities and Fair Value Measurements
Investment Securities
Investment securities classified as available-for-sale consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands):
September 30, 2020
Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Agency securities$3,104 $34 $— $3,138 
Treasury securities34,618 68 — 34,686 
Total available-for-sale investment securities$37,722 $102 $— $37,824 
December 31, 2019
Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Corporate bonds$9,597 $18 $(1)$9,614 
Agency securities11,101 17 — 11,118 
Treasury securities14,222 12 (1)14,233 
Total available-for-sale investment securities$34,920 $47 $(2)$34,965 
For available-for-sale debt securities in an unrealized loss position, we first assess whether we intend to sell, or whether it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of these criteria is met, the security’s amortized cost basis is written down to fair value through income. For securities in an unrealized loss position that do not meet these criteria, we evaluate whether the decline in fair value has resulted from credit loss or other factors. If this assessment indicates a credit loss exists, the credit-related portion of the loss is recorded as an allowance for losses on the security. No allowance for credit losses for available-for-sale investment securities was recorded as of September 30, 2020.
As of September 30, 2020 and December 31, 2019, the contractual maturities of our investments did not exceed 36 months. The fair values of available-for-sale investment securities, by remaining contractual maturity, are as follows (in thousands):
September 30, 2020December 31, 2019
Amortized CostEstimated Fair ValueAmortized CostEstimated Fair Value
Due in one year or less$32,658 $32,689 $22,846 $22,876 
Due after one year through three years5,064 5,135 12,074 12,089 
Total available-for-sale investment securities$37,722 $37,824 $34,920 $34,965 
During the nine months ended September 30, 2020 and 2019, we had sales and maturities (which include calls) of investment securities, as follows (in thousands):
Nine Months Ended September 30, 2020
Gross Realized GainsGross Realized LossesGross Proceeds from Sales Gross Proceeds from Maturities
Corporate bonds$5 $— $4,006 $5,600 
Agency securities25 — 7,878 1,900 
Treasury securities4 — 2,058 5,800 
Total$34 $— $13,942 $13,300 
Nine Months Ended September 30, 2019
Gross Realized GainsGross Realized LossesGross Proceeds from SalesGross Proceeds from Maturities
Corporate bonds$— $(1)$2,750 $8,350 
Agency securities— — — 2,650 
Total$— $(1)$2,750 $11,000 
Interest income, net of the amortization and accretion of the premium and discount, was $0.1 million for each of the three months ended September 30, 2020 and 2019, and $0.3 million and $0.5 million for the nine months ended September 30, 2020 and 2019, respectively.
Fair Value Measurements
Recurring Fair Value Measurements
Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables summarize our financial assets measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 by level within the fair value hierarchy (in thousands):
September 30, 2020
Level 1Level 2Level 3Total Fair
Value
Cash equivalents:
Money market funds$4,781 $— $— $4,781 
Treasury securities600 — — 600 
Available-for-sale investment securities:
Corporate bonds— — — — 
Agency securities— 3,138 — 3,138 
  Treasury securities34,686 — — 34,686 
Total$40,067 $3,138 $— $43,205 
December 31, 2019
Level 1Level 2Level 3Total Fair
Value
Cash equivalents:
Money market funds$337 $— $— $337 
Available-for-sale investment securities:
Corporate bonds— 9,614 — 9,614 
Agency securities— 11,118 — 11,118 
Treasury securities14,233 — — 14,233 
Total$14,570 $20,732 $— $35,302 
The carrying amounts of cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate fair value because of the short maturity of these items.
The estimated fair value of the $50.0 million term loan issued by Wells Fargo Bank, National Association ("Wells Fargo"), as administrative agent, and the lenders that are parties thereto ("Term Loan") and the $50.0 million revolving credit facility made available to us by Wells Fargo and the lenders that are parties thereto ("Revolving Facility," and, together with the Term Loan, the "Credit Facility"), approximated their carrying values due to the variable interest rates. We considered the fair value of the Term Loan and the Revolving Facility to be Level 2 measurements as these debt instruments were not actively traded. We carried the Term Loan at face value less the unamortized discount. Refer to Note 8, Long-Term Debt, of our Condensed Consolidated Financial Statements for more information about our since-terminated Term Loan and Revolving Facility.
There were no changes to our valuation techniques used to measure financial asset and financial liability fair values on a recurring basis during the nine months ended September 30, 2020. The valuation techniques for the financial assets in the tables above are as follows:
Cash Equivalents
As of September 30, 2020 and December 31, 2019, cash equivalents include cash invested in money market funds and treasury securities with a maturity of three months or less. Fair value is based on market prices for identical assets.
Available-for-Sale Investment Securities
Our Level 2 securities were priced by a pricing vendor. The pricing vendor utilizes the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, other observable inputs like market transactions involving comparable securities are used.
Non-Recurring Fair Value Measurements
Certain assets, including goodwill, intangible assets and our note receivable with SecureDocs, Inc., are also subject to measurement at fair value on a non-recurring basis using Level 3 measurement, but only when they are deemed to be impaired. For the nine months ended September 30, 2020 and 2019, no impairments were identified on those assets required to be measured at fair value on a non-recurring basis.