Note 4 - Fair Value Measurements

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Fair Value Disclosures [Text Block]

4.

Fair Value Measurements

The Company categorizes its financial instruments into a

three

-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level

1

) and the lowest priority to unobservable inputs (Level

3

). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Financial instruments recorded at fair value on the Company’s Consolidated Balance Sheets are categorized as follows:

Level 

1—Observable

inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 

2—Include

other inputs that are directly or indirectly observable in the marketplace.

Level 

3—Unobservable

inputs which are supported by little or

no

market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The following table provides the carrying value and fair value of certain financial assets and liabilities of the Company measured at fair value on a recurring basis as of

March 31, 2020

and

December 31, 2019

:

	Carrying		Fair Value Measurement at March 31, 2020
	Value		Level 1		Level 2		Level 3
	(Unaudited - In thousands)
Cash and cash equivalents	$	20,933	$	20,933	$	—	$	—
Restricted cash equivalents	$	25	$	25	$	—	$	—

	Carrying		Fair Value Measurement at December 31, 2019
	Value		Level 1		Level 2		Level 3
	(Unaudited - In thousands)
Cash and cash equivalents	$	25,028	$	25,028	$	—	$	—
Restricted cash equivalents	$	25	$	25	$	—	$	—

Held-to-maturity securities are carried at amortized cost, which, due to the short-term maturity of these instruments, approximates fair value using quoted prices in active markets for identical assets or liabilities defined as Level

1

inputs under the fair value hierarchy.