INVESTMENTS

9 Months Ended

Sep. 30, 2022

INVESTMENTS

INVESTMENTS

4. INVESTMENTS  

The Company’s investment securities portfolio consists of the following: Money Market Mutual Funds invested in high quality, short-term money market instruments which are issued and payable in U.S. dollars (“Money Market Funds”), Bank and Corporate issued Commercial Paper (“Commercial Paper”), Corporate Bonds, and U.S. Treasury Securities. The Money Market Funds and a portion of the Commercial Paper are considered cash and cash equivalents due to their short maturity dates. There were no holdings of securities of any one issuer in an amount greater than 10% of stockholders’ equity.  

The Money Market Funds qualify as equity securities per ASC 321, Investments - Equity Securities. No net gains or losses were recognized on sales of equity securities during the quarter or year to date and no unrealized gains or losses were recognized on equity securities held as of September 30, 2022 or as of December 31, 2021.

The Commercial Paper, Corporate Bonds, and U.S. Treasury Securities qualify as debt securities per ASC 320, Investments - Debt Securities, and have been classified as available-for-sale as they may be liquidated and used for general corporate purposes. None of the Company’s debt securities are classified as trading or held-to-maturity. As of September 30, 2022, the Company's debt securities portfolio had unaccreted discounts of $132 and no remaining unamortized premiums.

The table below presents the amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value aggregated by major security type as of September 30, 2022. Accrued interest receivable of $75 as of September 30, 2022, is not included in the table.

	As of September 30, 2022
Investment securities available-for-sale: (unaudited)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Allowance For Credit Losses		Fair Value
Commercial Paper	$	9,529	$	—	$	—	$	—	$	9,529
Corporate Bonds		200		—		(1)		—		199
U.S. Treasury Securities		4,939		—		(35)		—		4,904
Total investment securities available-for-sale	$	14,668	$	—	$	(36)	$	—	$	14,632

Investment Securities in a Gross Unrealized Loss Position

The table below provides the gross unrealized losses and fair value of securities available-for-sale aggregated by major security type and the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2022. The amounts include securities available-for-sale without an allowance for credit losses. As of September 30, 2022, the Company’s available-for-sale investment securities consisted of 50 securities, twelve of which are in an immaterial unrealized loss position of $36.  As a result, there is no allowance for credit losses recorded for available-for-sale debt securities as of September 30, 2022.

	As of September 30, 2022
	Less than 12 Months				12 Months or Longer				Total
Investment securities available-for-sale without an allowance for credit losses: (unaudited)	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
Commercial Paper	$	—	$	—	$	—	$	—	$	—	$	—
Corporate Bonds		199		(1)		—		—		199		(1)
U.S. Treasury Securities		4,612		(35)		—		—		4,612		(35)
Total investment securities available-for-sale	$	4,811	$	(36)	$	—	$	—	$	4,811	$	(36)

Maturities of Investment Securities

The table below summarizes, as of September 30, 2022, the fair value of investment securities by major security type and contractual maturity as well as the total fair value, and amortized cost of investment securities by contractual maturity. Because borrowers may have the right to call or prepay certain obligations, the expected maturities of securities are likely to differ from the scheduled contractual maturities presented below.

	As of September 30, 2022
	Due in 1 Year or Less		Due > 1 Year through 5 Years		Due > 5 Years through 10 Years		Due > 10 Years		Total
Fair value of investment securities available-for-sale: (unaudited)
Commercial Paper	$	9,529	$	—	$	—	$	—	$	9,529
Corporate Bonds		199		—		—		—		199
U.S. Treasury Securities		2,663		2,241		—		—		4,904
Total investment securities available-for-sale	$	12,391	$	2,241	$	—	$	—	$	14,632
Amortized cost of investment securities available-for-sale	$	12,405	$	2,263	$	—	$	—	$	14,668

Net Securities Gains or Losses and Securities Pledged

During the three months ended September 30, 2022, the Company had no sales of debt securities categorized as available-for-sale, resulting in no realized gains or losses, and no securities were pledged.