Financial Instruments

6 Months Ended

Jun. 30, 2021

Financial Instruments [Abstract]

Financial Instruments

7. FINANCIAL INSTRUMENTS

Certain financial assets and liabilities are accounted for at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy prioritizes the inputs used to measure fair value:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value from the perspective of a market participant.

The following tables present the Company’s cash and financial assets that are measured at fair value on a recurring basis for each of the hierarchy levels (in thousands):

	June 30, 2021
		Cost		Unrealized Gains		Accrued Interest		Estimated Fair Value		Cash & Cash Equivalents		Investment Securities
Cash	$	182,694	$	-	$	-	$	182,694	$	182,694	$	-
Level 1:
Money market accounts		9,293		-		-		9,293		9,293		-
Government & agency securities		1,403		26		-		1,429		-		1,429
		10,696		26		-		10,722		9,293		1,429
Level 2:
Municipal bonds		3,921		28		62		4,011		-		4,011
Total	$	197,311	$	54	$	62	$	197,427	$	191,987	$	5,440

	December 31, 2020
		Cost		Unrealized Gains		Accrued Interest		Estimated Fair Value		Cash & Cash Equivalents		Investment Securities
Cash	$	159,754	$	-	$	-	$	159,754	$	159,754	$	-
Level 1:
Money market accounts		3,969		-		-		3,969		3,969		-
Government & agency securities		2,829		45		-		2,874		-		2,874
		6,798		45		-		6,843		3,969		2,874
Level 2:
Municipal bonds		7,689		42		147		7,878		-		7,878
Total	$	174,241	$	87	$	147	$	174,475	$	163,723	$	10,752

The Company had no realized losses or gains for the three and six months ended June 30, 2021 and 2020, respectively. The maturities of the Company’s investment securities generally range up to 2 years for municipal bonds and for government and agency securities.