Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2020

The following tables summarize our cash and available-for-sale securities that were measured at fair value by significant investment category within the fair value hierarchy (in thousands):


	September 30, 2020
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value		Cash and Cash Equivalents		Short-Term Marketable Securities		Cash- Restricted
Assets:
Cash-unrestricted	$	49,144	$	—	$	—	$	49,144	$	49,144	$	—	$	—
Cash-restricted	1,015		—		—		1,015		—		—		1,015
Total cash	$	50,159	$	—	$	—	$	50,159	$	49,144	$	—	$	1,015
Available-for-sale:
Level I:
Money market funds	$	23,201	$	—	$	—	$	23,201	$	23,201	$	—	$	—


Total	$	73,360	$	—	$	—	$	73,360	$	72,345	$	—	$	1,015

	December 31, 2019
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value		Cash and Cash Equivalents		Short-Term Marketable Securities		Cash- Restricted
Assets:
Cash-unrestricted	$	16,614	$	—	$	—	$	16,614	$	16,614	$	—	$	—
Cash-restricted	2,075		—		—		2,075		—		—		2,075
Total cash	$	18,689	$	—	$	—	$	18,689	$	16,614	$	—	$	2,075
Available-for-sale:
Level I:
Money market funds	$	5,047	$	—	$	—	$	5,047	$	5,047	$	—	$	—
US treasury securities	36,942		36		—		36,978		—		36,978		—
Subtotal	$	41,989	$	36	$	—	$	42,025	$	5,047	$	36,978	$	—
Total	$	60,678	$	36	$	—	$	60,714	$	21,661	$	36,978	$	2,075

There were no transfers between Level I and Level II measurements, and no changes in the valuation techniques used, during the nine months ended September 30, 2020.

Based on an evaluation of securities that were in a loss position, we did not recognize any other-than-temporary impairment charges for the nine months ended September 30, 2020 and 2019. None of our investments have been in a continuous loss position for more than 12 months. We concluded that the declines in market value of our available-for-sale securities investment portfolio were temporary in nature and did not consider any of our investments to be other-than-temporarily impaired.

Convertible Notes

In 2019, we significantly reduced the amount of our outstanding debt. As a result, our convertible notes are not regularly traded and it is difficult to estimate a reliable and accurate market price for these securities. The estimated fair values for these securities represent Level III valuations since a fair value for these securities cannot be determined by using readily observable inputs or measures, such as market prices. Fair values were estimated using pricing models and risk-adjusted value ranges.

The following table summarizes the par value, carrying value and the estimated fair value of the 2014 and 2019 Notes at September 30, 2020 and December 31, 2019, respectively (in thousands):


	September 30, 2020						December 31, 2019
	Par Value		Carrying Value		Fair Value		Par Value		Carrying Value		Fair Value
2014 Notes	$	1,079	$	1,058	$	1,122	$	1,079	$	1,057	$	1,122
2019 Notes	55,000		53,063		143,039		55,000		52,764		73,975
Total	$	56,079	$	54,121	$	144,161	$	56,079	$	53,821	$	75,097

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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