Note 2 - Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Fair Value Disclosures [Text Block]

2. Fair Value of Financial Instruments

The estimated fair values of the Company’s financial instruments, which include cash equivalents, accounts receivable, accounts payable and other accrued liabilities, approximate their carrying values due to the short-term nature of these instruments. The Company’s marketable securities are classified as available-for-sale and are reported at fair value. Unrealized holding gains and losses are excluded from earnings and are reported net of tax in “accumulated other comprehensive loss” in the Consolidated Balance Sheets until realized. Realized gains and losses are included in “other income, net” in the Consolidated Statements of Operations and Comprehensive Loss and are derived using the specific identification method for determining the cost of marketable securities sold.

In accordance with ASC 820 “Fair Value Measurements and Disclosures”, the Company defines its’s fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, in the following:

• Level 1 Pricing inputs are quoted prices available in active markets for identical investments as of the reporting date.

 

• Level 2 Pricing inputs are quoted for similar investments, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 2 includes investments valued at quoted prices adjusted for legal or contractual restrictions specific to these investments.

• Level 3 Pricing inputs are unobservable for the investment; that is, the inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability.

The Company’s fair value hierarchy for its cash equivalents and marketable securities was as follows:

March 31, 2025	Level 1		Level 2		Level 3		Total
Money market securities	$	1,848	$	—	$	—	$	1,848
Commercial paper		—		10,340		—		10,340
U.S. treasuries		—		5,955		—		5,955
Federal agency notes		—		1,840		—		1,840
Total	$	1,848	$	18,135	$	—	$	19,983

December 31, 2024	Level 1		Level 2		Level 3		Total
Money market securities	$	112	$	—	$	—	$	112
Commercial paper		—		10,633		—		10,633
U.S. treasuries		—		9,192		—		9,192
Federal agency notes		—		5,317		—		5,317
Total	$	112	$	25,142	$	—	$	25,254

The fair value maturities of the Company’s cash equivalents and marketable securities as of March 31, 2025, were as follows:

	Maturities by Period
			Less than		1-5		5-10		More than
	Total		1 year		years		years		10 years
Cash equivalents and marketable securities	$	19,983	$	19,983	$	—	$	—	$	—

The Company considers all highly liquid marketable securities with original maturities of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents include commercial paper and money market securities totaling $7,318 and $8,889 at  March 31, 2025 and December 31, 2024, respectively. Cash equivalents are carried at either cost or fair value, depending on the type of security.