0001564590-22-003866.txt : 20220204 0001564590-22-003866.hdr.sgml : 20220204 20220203211744 ACCESSION NUMBER: 0001564590-22-003866 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 71 CONFORMED PERIOD OF REPORT: 20211231 FILED AS OF DATE: 20220204 DATE AS OF CHANGE: 20220203 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SURMODICS INC CENTRAL INDEX KEY: 0000924717 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 411356149 STATE OF INCORPORATION: MN FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-23837 FILM NUMBER: 22590636 BUSINESS ADDRESS: STREET 1: 9924 W 74TH ST CITY: EDEN PRAIRIE STATE: MN ZIP: 55344 BUSINESS PHONE: 9525007000 MAIL ADDRESS: STREET 1: 9924 WEST 74TH ST CITY: EDEN PRAIRIE STATE: MN ZIP: 55344 FORMER COMPANY: FORMER CONFORMED NAME: BSI CORP DATE OF NAME CHANGE: 19970506 10-Q 1 srdx-10q_20211231.htm 10-Q srdx-10q_20211231.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2021

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 0-23837

 

Surmodics, Inc.

(Exact name of registrant as specified in its charter)

 

Minnesota

41-1356149

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

9924 West 74th Street, Eden Prairie, Minnesota 55344

(Address of principal executive offices) (Zip Code)

 

(952) 500-7000

(Registrant’s telephone number, including area code)

 

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol

 

Name of each exchange on which registered

Common Stock, $0.05 par value

 

SRDX

 

Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

    

 

Non-accelerated filer

Smaller reporting company

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

The number of shares of the registrant’s Common Stock, $0.05 par value per share, as of February 1, 2022 was 13,976,000.

 

 

 

 


 

 

TABLE OF CONTENTS

 

 

2


Table of Contents

 

PART I. FINANCIAL INFORMATION

Item 1. Unaudited Condensed Consolidated Financial Statements

Surmodics, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

 

 

December 31,

 

 

September 30,

 

 

 

2021

 

 

2021

 

(In thousands, except per share data)

 

(Unaudited)

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

26,650

 

 

$

31,153

 

Available-for-sale securities

 

 

5,693

 

 

 

7,717

 

Accounts receivable, net of allowances of $124 and $119 as of

   December 31, 2021 and September 30, 2021, respectively

 

 

8,010

 

 

 

9,169

 

Contract assets — royalties and license fees

 

 

6,668

 

 

 

7,091

 

Inventories, net

 

 

8,290

 

 

 

6,760

 

Income tax receivable

 

 

1,916

 

 

 

1,912

 

Prepaids and other

 

 

7,689

 

 

 

6,453

 

Total Current Assets

 

 

64,916

 

 

 

70,255

 

Property and equipment, net

 

 

29,319

 

 

 

30,090

 

Available-for-sale securities

 

 

 

 

 

2,002

 

Deferred income taxes

 

 

6,372

 

 

 

5,867

 

Intangible assets, net

 

 

35,238

 

 

 

37,054

 

Goodwill

 

 

44,900

 

 

 

45,606

 

Other assets

 

 

4,121

 

 

 

3,718

 

Total Assets

 

$

184,866

 

 

$

194,592

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,845

 

 

$

1,783

 

Accrued liabilities:

 

 

 

 

 

 

 

 

Compensation

 

 

3,292

 

 

 

8,480

 

Accrued other

 

 

6,076

 

 

 

4,905

 

Short-term borrowings

 

 

10,000

 

 

 

10,000

 

Deferred revenue

 

 

4,430

 

 

 

4,647

 

Total Current Liabilities

 

 

25,643

 

 

 

29,815

 

Deferred revenue, less current portion

 

 

9,292

 

 

 

10,301

 

Deferred income taxes

 

 

2,547

 

 

 

2,742

 

Other long-term liabilities

 

 

10,713

 

 

 

11,649

 

Total Liabilities

 

 

48,195

 

 

 

54,507

 

Commitments and Contingencies (Note 10)

 

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

 

 

 

Series A Preferred stock — $.05 par value, 450 shares authorized; no shares

   issued and outstanding

 

 

 

 

 

 

Common stock — $.05 par value, 45,000 shares authorized; 13,975 and

   13,899 shares issued and outstanding as of December 31, 2021 and

   September 30, 2021, respectively

 

 

699

 

 

 

695

 

Additional paid-in capital

 

 

22,644

 

 

 

21,598

 

Accumulated other comprehensive income

 

 

75

 

 

 

1,727

 

Retained earnings

 

 

113,253

 

 

 

116,065

 

Total Stockholders’ Equity

 

 

136,671

 

 

 

140,085

 

Total Liabilities and Stockholders’ Equity

 

$

184,866

 

 

$

194,592

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3


Table of Contents

Surmodics, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

(In thousands, except per share data)

 

(Unaudited)

 

Revenue:

 

 

 

 

 

 

 

 

Product sales

 

$

12,344

 

 

$

10,102

 

Royalties and license fees

 

 

8,099

 

 

 

9,334

 

Research, development and other

 

 

2,560

 

 

 

2,861

 

Total revenue

 

 

23,003

 

 

 

22,297

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Product costs

 

 

4,497

 

 

 

3,743

 

Research and development

 

 

11,663

 

 

 

10,882

 

Selling, general and administrative

 

 

9,192

 

 

 

7,023

 

Acquired intangible asset amortization

 

 

1,089

 

 

 

556

 

Contingent consideration expense

 

 

3

 

 

 

 

Total operating costs and expenses

 

 

26,444

 

 

 

22,204

 

Operating (loss) income

 

 

(3,441

)

 

 

93

 

Other expense:

 

 

 

 

 

 

 

 

Investment income, net

 

 

26

 

 

 

41

 

Interest expense

 

 

(136

)

 

 

(60

)

Foreign exchange gain (loss)

 

 

33

 

 

 

(180

)

Other expense

 

 

(77

)

 

 

(199

)

Loss before income taxes

 

 

(3,518

)

 

 

(106

)

Income tax benefit (provision)

 

 

706

 

 

 

(168

)

Net loss

 

$

(2,812

)

 

$

(274

)

 

 

 

 

 

 

 

 

 

Basic net loss per share

 

$

(0.20

)

 

$

(0.02

)

Diluted net loss per share

 

$

(0.20

)

 

$

(0.02

)

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

13,878

 

 

 

13,668

 

Diluted

 

 

13,878

 

 

 

13,668

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4


Table of Contents

Surmodics, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive (Loss) Income

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

(In thousands)

 

(Unaudited)

 

Net loss

 

$

(2,812

)

 

$

(274

)

Other comprehensive (loss) income:

 

 

 

 

 

 

 

 

Net changes related to available-for-sale securities, net of tax

 

 

(5

)

 

 

 

Foreign currency translation adjustments

 

 

(1,647

)

 

 

1,832

 

Other comprehensive (loss) income

 

 

(1,652

)

 

 

1,832

 

Comprehensive (loss) income

 

$

(4,464

)

 

$

1,558

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5


Table of Contents

Surmodics, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2021 and 2020

 

 

 

(Unaudited)

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-In

 

 

Comprehensive

 

 

Retained

 

 

Stockholders’

 

(In thousands)

 

Shares

 

 

Amount

 

 

Capital

 

 

Income

 

 

Earnings

 

 

Equity

 

Balance at September 30, 2021

 

 

13,899

 

 

$

695

 

 

$

21,598

 

 

$

1,727

 

 

$

116,065

 

 

$

140,085

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,812

)

 

 

(2,812

)

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

(1,652

)

 

 

 

 

 

(1,652

)

Issuance of common stock

 

 

81

 

 

 

4

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

Common stock options exercised, net

 

 

14

 

 

 

1

 

 

 

229

 

 

 

 

 

 

 

 

 

230

 

Purchase of common stock to pay employee taxes

 

 

(19

)

 

 

(1

)

 

 

(859

)

 

 

 

 

 

 

 

 

(860

)

Stock-based compensation

 

 

 

 

 

 

 

 

1,680

 

 

 

 

 

 

 

 

 

1,680

 

Balance at December 31, 2021

 

 

13,975

 

 

$

699

 

 

$

22,644

 

 

$

75

 

 

$

113,253

 

 

$

136,671

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2020

 

 

13,672

 

 

$

684

 

 

$

15,369

 

 

$

3,174

 

 

$

111,828

 

 

$

131,055

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(274

)

 

 

(274

)

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

 

 

1,832

 

 

 

 

 

 

1,832

 

Issuance of common stock

 

 

81

 

 

 

4

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

Common stock options exercised, net

 

 

3

 

 

 

 

 

 

6

 

 

 

 

 

 

 

 

 

6

 

Purchase of common stock to pay employee taxes

 

 

(17

)

 

 

(1

)

 

 

(644

)

 

 

 

 

 

 

 

 

(645

)

Stock-based compensation

 

 

 

 

 

 

 

 

1,433

 

 

 

 

 

 

 

 

 

1,433

 

Balance at December 31, 2020

 

 

13,739

 

 

$

687

 

 

$

16,160

 

 

$

5,006

 

 

$

111,554

 

 

$

133,407

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6


Table of Contents

Surmodics, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

(In thousands)

 

(Unaudited)

 

Operating Activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(2,812

)

 

$

(274

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

2,376

 

 

 

1,860

 

Stock-based compensation

 

 

1,680

 

 

 

1,433

 

Noncash lease expense

 

 

91

 

 

 

74

 

Provision for credit losses

 

 

4

 

 

 

(7

)

Deferred taxes

 

 

(640

)

 

 

310

 

Other

 

 

77

 

 

 

13

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable and contract assets

 

 

1,547

 

 

 

(830

)

Inventories

 

 

(1,570

)

 

 

(236

)

Prepaids and other

 

 

(1,432

)

 

 

(357

)

Accounts payable

 

 

200

 

 

 

(485

)

Accrued liabilities

 

 

(5,227

)

 

 

(4,236

)

Income taxes

 

 

(95

)

 

 

(165

)

Deferred revenue

 

 

(1,225

)

 

 

(1,370

)

Net cash used in operating activities

 

 

(7,026

)

 

 

(4,270

)

Investing Activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(782

)

 

 

(1,319

)

Payment for acquisition of intangible assets

 

 

 

 

 

(1,000

)

Purchases of available-for-sale securities

 

 

 

 

 

(5,820

)

Maturities of available-for-sale securities

 

 

4,000

 

 

 

18,013

 

Net cash provided by investing activities

 

 

3,218

 

 

 

9,874

 

Financing Activities:

 

 

 

 

 

 

 

 

Issuance of common stock

 

 

230

 

 

 

6

 

Payments for taxes related to net share settlement of equity awards

 

 

(853

)

 

 

(646

)

Payments for acquisition of in-process research and development

 

 

 

 

 

(150

)

Net cash used in financing activities

 

 

(623

)

 

 

(790

)

Effect of exchange rate changes on cash

 

 

(72

)

 

 

155

 

Net change in cash and cash equivalents

 

 

(4,503

)

 

 

4,969

 

Cash and Cash Equivalents:

 

 

 

 

 

 

 

 

Beginning of period

 

 

31,153

 

 

 

30,785

 

End of period

 

$

26,650

 

 

$

35,754

 

Supplemental Information:

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

$

3

 

 

$

9

 

Cash paid for interest

 

 

82

 

 

 

 

Noncash investing and financing activities:

 

 

 

 

 

 

 

 

Acquisition of property and equipment, net of refundable credits in other current assets

    and liabilities

 

 

137

 

 

 

82

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

 

350

 

 

 

44

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

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Surmodics, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Period Ended December 31, 2021

(Unaudited)

 

1. Basis of Presentation

Overview

Surmodics, Inc. and subsidiaries (“Surmodics,” the “Company,” “we,” “us,” “our” and other like terms) is a leading provider of surface modification technologies for intravascular medical devices and chemical components for in vitro diagnostic (“IVD”) immunoassay tests and microarrays. Surmodics is pursuing development and commercialization of highly differentiated medical devices that are designed to address unmet clinical needs and engineered to the most demanding requirements. This key growth strategy leverages the combination of the Company’s expertise in proprietary surface technologies, along with enhanced device design, development, and manufacturing capabilities. The Company mission remains to improve the detection and treatment of disease. Surmodics is headquartered in Eden Prairie, Minnesota.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include all accounts and wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All intercompany transactions have been eliminated. The Company operates on a fiscal year ending on September 30. In accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”), the Company has omitted footnote disclosures that would substantially duplicate the disclosures contained in the audited consolidated financial statements of the Company. These unaudited condensed consolidated financial statements should be read together with the audited consolidated financial statements for the fiscal year ended September 30, 2021, and notes thereto included in our Annual Report on Form 10-K as filed with the SEC.

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from those estimates. The results of operations for the three months ended December 31, 2021 are not necessarily indicative of the results that may be expected for the entire 2022 fiscal year.

Certain reclassifications have been made to the prior year's consolidated financial statements to conform to the current year presentation.

New Accounting Pronouncements

No new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s condensed consolidated financial statements.

2. Revenue

The following table presents the Company’s revenues disaggregated by product classification and by reportable segment.

 

 

Three Months Ended December 31,

 

(In thousands)

 

2021

 

 

2020

 

Medical Device

 

 

 

Product sales

 

$

6,788

 

 

$

4,561

 

Royalties

 

 

6,886

 

 

 

7,909

 

License fees

 

 

1,213

 

 

 

1,425

 

Research, development and other

 

 

2,021

 

 

 

2,301

 

Medical Device Revenue

 

 

16,908

 

 

 

16,196

 

In Vitro Diagnostics

 

 

 

 

 

 

 

 

Product sales

 

 

5,556

 

 

 

5,541

 

Research, development and other

 

 

539

 

 

 

560

 

In Vitro Diagnostics Revenue

 

 

6,095

 

 

 

6,101

 

Total Revenue

 

$

23,003

 

 

$

22,297

 

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Table of Contents

 

Contract assets totaled $6.7 million and $7.1 million as of December 31, 2021 and September 30, 2021, respectively. Fluctuations in the balance of contract assets result primarily from changes in sales-based and minimum royalties earned, but not collected, at each balance sheet date due to payment timing and contractual changes in the normal course of business. For discussion of contract liability (deferred revenue) balances and remaining performance obligations, see Note 3 Collaborative Arrangement.

3. Collaborative Arrangement

On February 26, 2018, the Company entered into an agreement with Abbott Vascular, Inc. (“Abbott”) whereby Abbott has exclusive worldwide commercialization rights for Surmodics' SurVeilTM drug-coated balloon (“DCB”) to treat the superficial femoral artery (the “Abbott Agreement”). A premarket approval application (“PMA”) for the SurVeil DCB was being evaluated by the U.S. Food and Drug Administration (“FDA”) as of December 31, 2021. Separately, Abbott also received the option to negotiate an agreement for Surmodics' below-the-knee SundanceTM DCB product. As of December 31, 2021, six-month patient follow-up visits are complete for the SWING first-in-human, 35-patient clinical study of the Sundance DCB, and we are evaluating the results. Surmodics is responsible for conducting all necessary clinical trials and other activities required to achieve U.S. regulatory clearance for the SurVeil DCB, including completion of the ongoing TRANSCEND pivotal clinical trial. Abbott and Surmodics participate on a joint development committee charged with providing guidance on the Company’s clinical and regulatory activities with regard to the SurVeil DCB product. Upon receipt of regulatory approval for our SurVeil DCB, Abbott will have the right to purchase commercial units from the Company and Surmodics will realize revenue from product sales to Abbott at an agreed-upon transfer price, as well as a share of net profits resulting from third-party product sales by Abbott. To account for the Abbott Agreement, the Company applied the guidance in ASC Topic 808 (Collaborative Arrangements) as the parties are active participants and are exposed to significant risks and rewards dependent on commercial success of the collaborative activity.

As of December 31, 2021, the Company has received payments totaling $60.8 million under the Abbott Agreement, which consist of the following: (i) $25 million upfront fee in fiscal 2018, (ii) $10 million milestone payment in fiscal 2019, (iii) $10.8 million milestone payment in fiscal 2020, and (iv) $15 million milestone payment in the second quarter of fiscal 2021. As of December 31, 2021, the Company may receive an additional contingent milestone payment of up to $30 million, pursuant to the terms of the Abbott Agreement, upon PMA of our SurVeil DCB by the FDA. As of December 31, 2021, consideration from this potential regulatory milestone was excluded from the contract price (i.e., deemed fully constrained), due to the high level of uncertainty of achievement as of December 31, 2021.

Revenue recognized from the Abbott agreement totaled $1.2 million and $1.3 million for the three months ended December 31, 2021 and 2020, respectively, all of which was included in the respective beginning of fiscal year balances of deferred revenue on the condensed consolidated balance sheets.

As of December 31, 2021 and September 30, 2021, deferred revenue from the upfront and milestone payments received under the Abbott Agreement of $13.7 million and $14.9 million, respectively, was recorded on the condensed consolidated balance sheets.

As of December 31, 2021, the estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied for executed contracts with an original duration of one year or more totaled $13.7 million. These remaining performance obligations relate to the Abbott Agreement, exclude the potential contingent milestone payment under the Abbott Agreement, and are expected to be recognized over the next four years through fiscal 2025 as services, principally the TRANSCEND clinical trial, are completed.

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Table of Contents

4. Fair Value Measurements

Assets measured at fair value on a recurring basis by level of the fair value hierarchy were as follows:

 

 

 

December 31, 2021

 

(In thousands)

 

Quoted Prices in

Active Markets

for Identical

Instruments

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

 

Total

Fair Value

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents (1)

 

$

 

 

$

2,333

 

 

$

 

 

$

2,333

 

Available-for-sale securities (1)

 

 

 

 

 

5,693

 

 

 

 

 

 

5,693

 

Total assets

 

$

 

 

$

8,026

 

 

$

 

 

$

8,026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration (2)

 

$

 

 

$

 

 

$

820

 

 

$

820

 

Total liabilities

 

$

 

 

$

 

 

$

820

 

 

$

820

 

 

 

 

September 30, 2021

 

(In thousands)

 

Quoted Prices in

Active Markets

for Identical

Instruments

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

 

Total

Fair Value

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents (1)

 

$

 

 

$

5,308

 

 

$

 

 

$

5,308

 

Available-for-sale investments (1)

 

 

 

 

 

9,719

 

 

 

 

 

 

9,719

 

Total assets

 

$

 

 

$

15,027

 

 

$

 

 

$

15,027

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration (2)

 

$

 

 

$

 

 

$

817