Fair Value Measurements

9 Months Ended

Sep. 30, 2022

Fair Value Measurements

Fair Value Measurements

Note 4 – Fair Value Measurements

We record cash equivalents and marketable securities at fair value. ASC 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and our own assumptions (unobservable inputs). The hierarchy consists of three levels:

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 – Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs which are observable, directly or indirectly, for substantially the full term of the asset or liability.

Level 3 – Unobservable inputs that reflect our own assumptions about the assumptions market participants would use in pricing the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date.

The following table summarizes our cash equivalents and marketable securities measured at fair value on a recurring basis as of September 30, 2022:

		Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents
Money market	$	27,020,980	$	-	$	-	$	27,020,980
Total cash equivalents		27,020,980		-		-		27,020,980
Marketable securities:
U.S. Treasuries	$	25,310,185	$	-	$	-	$	25,310,185
Government securities		-		8,040,740		-		8,040,740
Commercial paper		-		7,428,515		-		7,428,515
Total marketable securities		25,310,185		15,469,255		-		40,779,440
Total cash equivalents and marketable securities	$	52,331,165	$	15,469,255	$	-	$	67,800,420

Cash equivalents and marketable securities have been initially valued at the transaction price and subsequently, at the end of each reporting period, valued utilizing third-party pricing services or other observable market data. The pricing services utilize industry standard valuation models, including both income and market-based approaches, and observable market inputs to determine value. After completing our valuation procedures, we did not adjust or override any fair value measurements provided by the pricing services as of September 30, 2022.

There have been no changes to the valuation methods during the nine months ended September 30, 2022. There were no transfers between Level 1 and Level 2 and we had no financial assets or liabilities that were classified as Level 3 at any point during the nine months ended September 30, 2022.

The following table summarizes our cash equivalents and marketable securities measured at fair value on a recurring basis as of December 31, 2021:

		Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents
Money market	$	33,961,344	$	-	$	-	$	33,961,344
Commercial paper		-		2,000,000		-		2,000,000
Total cash equivalents		33,961,344		2,000,000		-		35,961,344
Marketable securities:
U.S. Treasuries	$	43,115,370	$	-	$	-	$	43,115,370
Government securities		-		19,204,368		-		19,204,368
Commercial paper		-		12,988,025		-		12,988,025
Total marketable securities		43,115,370		32,192,393		-		75,307,763
Total cash equivalents and marketable securities	$	77,076,714	$	34,192,393	$	-	$	111,269,107