Note 8 - Marketable Securities

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Investment [Text Block]

Note 8 – Marketable Securities

The Company invests in short-term and long-term agency, municipal, corporate and other debt securities. As of December 31, 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. 

Information regarding the Company’s short-term and long-term marketable securities as of December 31, 2021 and 2020 is as follows:

	December 31, 2021
(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government agency securities	$	2,500	$	-	$	(12	)	$	2,488
Corporate debt securities		9,303		-		(44	)		9,259
U.S. municipal securities		12,549		-		(70	)		12,479
Commercial paper		-		-		-			-
Certificates of deposit/time deposits		1,687		7		-			1,694
Total marketable securities	$	26,039	$	7	$	(126	)	$	25,920

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

	December 31,
(in thousands)	2021
Due in one year or less	$	11,580
Due after one year through five years		14,340
Total marketable securities	$	25,920