Investments

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

NOTE 5. INVESTMENTS

The following tables summarize the Company’s debt securities available-for-sale investments at March 31, 2020 and December 31, 2019 (in thousands):


	March 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Certificates of deposit	$	6,381	$	28	$	—	$	6,409
U.S. Treasury securities	20,583		183		—		20,766
U.S. Agency securities	6,527		21		—		6,548
Commercial paper	1,996		1		—		1,997
Corporate notes and bonds	16,728		26		(14)		16,740
Total	$	52,215	$	259	$	(14)	$	52,460


	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Certificates of deposit	$	5,646	$	17	$	—	$	5,663
U.S. Treasury securities	12,564		16		(1)		12,579
U.S. Agency securities	4,002		—		(4)		3,998
Commercial paper	2,492		—		(1)		2,491
Corporate notes and bonds	22,711		6		(11)		22,706
Total	$	47,415	$	39	$	(17)	$	47,437

The following table summarizes the maturities of the Company’s debt securities available-for-sale investments at March 31, 2020 and December 31, 2019 (in thousands):


	March 31, 2020						December 31, 2019
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in less than 1 year	$	51,968	$	52,213	$	43,627	$	43,650
Due in 1-3 years	247		247		3,788		3,787
	$	52,215	$	52,460	$	47,415	$	47,437

Proceeds from sales of debt securities available-for-sale (including principal paydowns) for the three months ended March 31, 2020 and 2019 were $0 and $9.0 million, respectively. The Company determines gains and losses of marketable securities based on specific identification of the securities sold. There were no material realized gains or losses from debt securities available-for-sale for the three months ended March 31, 2020 and 2019. No material balances were reclassified out of accumulated other comprehensive loss for the three months ended March 31, 2020 and 2019.

As of March 31, 2020, there were no holdings of debt securities available-for-sale of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10%. As of March 31, 2020 there were no debt securities available-for-sale in an unrealized loss position greater than 12 months.

As of March 31, 2020 the Company carried debt securities available-for-sale that were certificates of deposits, which were not covered by a rating agency or the credit rating was below the Company's minimum credit rating. As of March 31, 2020 all of the Companies certificate deposits were below the FDIC's insurance limit of $250 thousand per depositor which mitigated the Companies investment risk. All other debt securities available-for-sale had a credit rating of A- or better as of March 31, 2020.

Unrealized losses on debt securities available-for-sale have not been recognized in income for the three months ended March 31, 2020 because the issuers of such securities held by us were of high credit quality, management does not intend to sell the securities and it is likely that management will not be required to sell the securities prior to their anticipated recovery. Declines in fair value are largely due to changes in interest rates and other market conditions. Issuers continue to make timely principal and interest payments on the debt securities available-for-sale. The fair value is expected to recover as the debt securities available-for-sale approach maturity.

Equity securities are comprised of investments in mutual funds. The fair value of equity securities at March 31, 2020 was $0.1 million. There were no material unrealized losses on equity securities recorded in income for the three months ended March 31, 2020. These unrealized losses are recorded as a component of other expense, net. There were no realized gains or losses from equity securities for the three months ended March 31, 2020.