Investments

3 Months Ended

Mar. 31, 2024

Investments

Investments

(4) Investments

As of March 31, 2024, we held investments in bonds, money market accounts, mutual funds, and equity securities. The bonds are considered held-to-maturity and are recorded at amortized cost in the accompanying consolidated balance sheets. The money market accounts, equity securities, and mutual funds are recorded at fair value in the accompanying consolidated balance sheets. The fair values of these investments were estimated using recently executed transactions and market price quotations. We consider as current assets those investments which will mature in the next 12 months including interest receivable on the long-term bonds. The remaining investments are considered non-current assets which we intend to hold longer than 12 months.

The components of the Company’s cash and cash equivalents and our short- and long-term investments are as follows (in thousands):

	March 31,  2024		December 31, 2023
Cash and cash equivalents:
Money market funds	$	7,133	$	3,563
Cash deposits		2		2
Total cash and cash equivalents	$	7,135	$	3,565
Short-term investments:
Bonds (held-to-maturity)	$	2,618	$	2,552
Equity securities (available for sale)		142		139
Total short-term investments	$	2,760	$	2,691
Long-term investments:
Equity securities (available for sale)	$	4,227	$	4,354
Bonds (held-to-maturity)		3,307		3,575
Mutual funds (available for sale)		1,319		236
Total long-term investments	$	8,853	$	8,165
Total cash, cash equivalents and short and long-term investments	$	18,748	$	14,421

We utilize a lifetime “expected credit loss” measurement objective for the recognition of credit losses for held-to-maturity securities at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. During the first quarter of 2024, our allowance for credit losses was immaterial.

The following table summarizes the amortized cost of our held-to-maturity bonds at March 31, 2024 aggregated by credit quality indicator (in thousands):

Held-to-Maturity Bonds
Credit Quality Indicators	Fed Govt. Bonds/Notes		Corporate Bonds		Totals
AAA/AA/A	$	2,384	$	500	$	2,884
BBB/BB		-		3,041		3,041
TOTAL	$	2,384	$	3,541	$	5,925

Our investments are required to be measured for disclosure purposes at fair value on a recurring basis. Our investments are considered Level 1 or Level 2 as detailed in the table below. The fair values of these investments were estimated using recently executed transactions and market price quotations. The amortized cost and fair value of our investments, and the related gross unrealized gains and losses, were as follows as of the dates shown below (in thousands):

					Gross Unrealized
	Level		Cost		Gains		Losses			Fair Value
As of March 31, 2024:
Money market		1		7,133	$	-	$	-		$	7,133
Bonds		2		5,925	$	1	$	(86	)	$	5,840
Mutual funds		1		1,347	$	-	$	(28	)	$	1,319
Equity investments		2		6,054	$	-	$	(1,685	)	$	4,369
As of December 31, 2023:
Money Market		1		3,563	$	-	$	-		$	3,563
Bonds		2		6,127	$	1	$	(82	)	$	6,046
Mutual funds		1		279	$	-	$	(43	)	$	236
Equity investments		2		6,054	$	-	$	(1,561	)	$	4,493

The carrying value of our investments is reviewed quarterly for changes in circumstances or the occurrence of events that suggests an investment may not be fully recoverable. The bonds represent investments in various issuers at March 31, 2024. The unrealized losses for some of these bond investments reflect changes in interest rates following their acquisition. As of March 31, 2024, we had four bond investments in a loss position for more than 12 months.

At March 31, 2024, the length of time to maturity for the bonds we held ranged from 12 to 24 months.