Note 7 - Marketable Securities

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Investment [Text Block]

Note 7 – Marketable Securities

The Company invests in short-term and long-term agency, municipal, corporate and other debt securities. As of September 30, 2021, the securities are categorized as available-for-sale and are recorded at fair value. As of December 31, 2020, the securities were categorized as held-to-maturity and were recorded at amortized cost, net of an allowance for credit losses. The change in categorization was a result of the sale of securities in the first quarter of 2021 in order to partially fund the acquisition of Hubs and did not have a material impact on our financial statements. The following table summarizes information regarding the Company’s short-term and long-term marketable securities as of  September 30, 2021 and December 31, 2020:

	September 30, 2021
(in thousands)	Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. municipal securities	$	18,515	$	28	$	(13	)	$	18,530
Corporate debt securities		11,852		34		(14	)		11,872
U.S. government agency securities		1,500		-		(1	)		1,499
Certificates of deposit/time deposits		4,160		38		-			4,198
Total marketable securities	$	36,027	$	100	$	(28	)	$	36,099

	December 31, 2020
(in thousands)	Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. municipal securities	$	25,003	$	83	$	(2	)	$	25,084
Corporate debt securities		42,048		211		(11	)		42,248
U.S. government agency securities		18,500		6		(10	)		18,496
Certificates of deposit/time deposits		5,395		93		-			5,488
Commercial paper		2,499		-		-			2,499
Total marketable securities	$	93,445	$	393	$	(23	)	$	93,815

Fair values for the corporate debt securities are primarily determined based on quoted market prices (Level 1). Fair values for the U.S. municipal securities, U.S. government agency securities, certificates of deposit and U.S. treasury securities are primarily determined using dealer quotes or quoted market prices for similar securities (Level 2).

During the first quarter of 2020, the Company adopted the FASB ASU 2016-13, Financial Instruments – Credit Losses. The Company calculated the expected credit loss for each security in its portfolio using the probability-of-default method. The Company concluded the adoption of the guidance had no material impact on its consolidated financial statements. 

Classification of marketable securities as current or non-current is based upon the security’s maturity date as of the date of these financial statements.

The  September 30, 2021 balance of available-for-sale debt securities by contractual maturity is shown in the following table at fair value. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.

	September 30,
(in thousands)	2021
Due in one year or less	$	16,542
Due after one year through five years		19,557
Total marketable securities	$	36,099