Fair Value Measurement |
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Fair Value Measurement | 3. Fair Value Measurement The fair value measurement level within the fair value hierarchy of an asset or liability is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following table sets forth by Level, within the fair value hierarchy, the Company’s assets at fair value as of June 30, 2024:
The following table sets forth by Level, within the fair value hierarchy, the Company’s assets at fair value as of December 31, 2023:
Following is a description of the methodologies used for assets measured at fair value: Stocks and ETFs (Levels 1 and 2): Valued at the closing price reported in the active market in which the individual securities are traded. Mutual funds (Levels 1 and 2): Valued at the daily closing price reported by the fund. Mutual funds held by the Company are open-end mutual funds that are registered with the U.S. Securities and Exchange Commission. These funds are required to publish their daily net asset values and to transact at that price. The mutual funds held by the Company are deemed to be actively traded. Debt securities: Valued at the closing price reported in the active market in which the individual securities are traded. Impact of Fair Value of Available-for-sale Securities on Other Comprehensive Income The carrying value of the Company’s financial instruments approximates fair value generally due to the relative short-term nature of such instruments. Other financial assets and financial liabilities have fair value that approximate their carrying value. Pursuant to ASC Topic 326-30-50-4 and 50-5 the Company is required to disclose investment securities that have been in a continuous unrealized loss position for 12 months or more as of the balance sheet date. As of June 30, 2024 and December 31, 2023, the Company had a continuous unrealized losses over 12 months in Available-For-Sale (“AFS”) debt securities of $0 and $0.8 million, respectively. The Company reviewed a number of factors to assess the credit quality of the debt instruments including, but not limited to, current cash position, operating cash flow, corporate earnings and the impending maturity date of said securities, as of the most recently filed financial statements. As such, at June 30, 2024 and December 31, 2023, the Company has an allowance for credit losses regarding AFS debt securities totaling $0 and $0.8 million, respectively, of which is included in investment securities (at fair value) on the consolidated balance sheets included in the accompanying consolidated financial statements. There was no such related provision of credit losses for the three and six month periods ended June 30, 2024 and 2023. During the three months ended June 30, 2024, the Company sold all of the remaining AFS debt securities. The following table presents the impact of the Company’s AFS securities - debt securities on its Other Comprehensive Income (“OCI”) for the three and six months ended June 30, 2024 and 2023:
As of June 30, 2024 and 2023, the investment securities cost basis was $3.1 million and $38.9 million, respectively. |
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