MARKETABLE SECURITIES

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

ASC Topic 320, “Investments – Debt and Equity Securities,” requires that an enterprise classify all debt securities as either held-to-maturity, trading or available-for-sale. The Company has elected to classify its securities as available-for-sale and therefore is required to adjust securities to fair value at each reporting date. All costs and both realized and unrealized gains and losses on securities are determined on a specific identification basis. The following is a summary of available-for-sale securities at:


($ in thousands)		March 31, 2025				December 31, 2024
Marketable Securities:	Fair Value Hierarchy	Cost		Fair Value		Cost		Fair Value
Certificates of deposit


with unrealized gains		248		248		248		248
Total Certificates of deposit	Level 1	248		248		248		248
U.S. Treasury and agency notes
with unrealized losses for less than 12 months		11,111		11,103		6,115		6,109

with unrealized gains		3,806		3,810		7,573		7,583
Total U.S. Treasury and agency notes	Level 2	14,917		14,913		13,688		13,692
Corporate notes
with unrealized losses for less than 12 months		4,988		4,988		—		—


Total Corporate notes	Level 2	4,988		4,988		—		—
Municipal notes
with unrealized losses for less than 12 months		500		500		501		501


Total Municipal notes	Level 2	500		500		501		501

		$	20,653	$	20,649	$	14,437	$	14,441

The Company uses an allowance approach when recognizing credit loss for available-for-sale debt securities, measured as the difference between the security's amortized cost basis and the amount expected to be collected over the security's lifetime. Under this approach, at each reporting date, the Company records impairment related to credit losses through earnings offset with an allowance for credit losses, or ACL. At March 31, 2025, the Company has not recorded any credit losses.

As of March 31, 2025, the fair market value of investment securities was $4,000 below their cost basis. The Company’s gross unrealized holding gains equaled $4,000 and gross unrealized holding losses equaled $8,000. For the three months ended March 31, 2025, the adjustment to accumulated other comprehensive loss reflected a decrease in market value of $8,000, including estimated taxes of $2,000.

The Company elected to exclude applicable accrued interest from both the fair value and the amortized cost basis of the available-for-sale debt securities, and separately present the accrued interest receivable balance. The accrued interest receivables balance totaled $145,000 as of March 31, 2025 and was included within the Prepaid expenses and other current assets line item of the Consolidated Balance Sheets. The Company elected not to measure an allowance for credit losses on accrued interest receivable, as an allowance on possible uncollectible accrued interest is not warranted.

U.S. Treasury and agency notes

The unrealized losses on the Company's investments in U.S. Treasury and agency notes at March 31, 2025 and December 31, 2024 were caused by relative changes in interest rates since the time of purchase and not changes in credit quality. The contractual cash flows for these securities are guaranteed by U.S. government agencies. As of March 31, 2025 and December 31, 2024, the Company did not intend to sell these securities and it is not more-likely-than-not that the Company would be required to sell these securities before recovery of their cost basis. Therefore, these investments did not require an ACL as of March 31, 2025 and December 31, 2024.

Corporate notes

The unrealized losses on corporate notes are a function of changes in investment spreads and interest rate movements and not changes in credit quality. The Company expects to recover the entire amortized cost basis of these securities. As of March 31, 2025 and December 31, 2024, the Company did not intend to sell these securities and it is not more-likely-than-not the Company would be required to sell these securities before recovery of their cost basis. Therefore, these investments did not require an ACL as of March 31, 2025 and December 31, 2024.

The following tables summarize the maturities, at par, of marketable securities as of:


	March 31, 2025
($ in thousands)	2025		2026		2027		Total
Certificates of deposit	$	248	$	—	$	—	$	248
U.S. Treasury and agency notes	7,735		6,500		737		14,972
Corporate notes	5,000		—		—		5,000
Municipal notes	500		—		—		500
Total	$	13,483	$	6,500	$	737	$	20,720


	December 31, 2024
($ in thousands)	2025		2026		2027		Total
Certificates of deposit	$	248	$	—	$	—	$	248
U.S. Treasury and agency notes	12,015		1,000		737		13,752

Municipal notes	500		—		—		500
	$	12,763	$	1,000	$	737	$	14,500

The Company’s investments in corporate notes are with companies that have an investment grade rating from Standard & Poor’s as of March 31, 2025 and December 31, 2024.