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 represent cash and the available-for-sale securities adjusted cost, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or investment securities (in thousands):


	March 31, 2019
		Cost		Unrealized Losses		Accrued Interest		Estimated Fair Value		Cash & Cash Equivalents		Investment Securities

Cash	$	39,714	$	-	$	-	$	39,714	$	39,714	$	-

Level 1:
Certificate of deposit		60,000		-		-		60,000		60,000		-
Money market accounts		2,128		-		-		2,128		2,128		-
Government & agency securities		2,833		(48)		11		2,796		-		2,796
		64,961		(48)		11		64,924		62,128		2,796

Level 2:
Municipal bonds		15,667		(61)		183		15,789		-		15,789

Total	$	120,342	$	(109)	$	194	$	120,427	$	101,842	$	18,585


	December 31, 2018
		Cost		Unrealized Losses		Accrued Interest		Estimated Fair Value		Cash & Cash Equivalents		Investment Securities

Cash	$	35,436	$	-	$	-	$	35,436	$	35,436	$	-

Level 1:
Certificate of deposit		40,000		-		-		40,000		40,000		-
Money market accounts		5,928		-		-		5,928		5,928		-
Government & agency securities		2,835		(72)		-		2,763		-		2,763
		48,763		(72)		-		48,691		45,928		2,763

Level 2:
Municipal bonds		16,791		(164)		280		16,907		-		16,907

Total	$	100,990	$	(236)	$	280	$	101,034	$	81,364	$	19,670

The Company had no realized loss or gains for the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019 and 2018, gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer were not significant. The maturities of the Company’s investment securities generally range up to 5 years for municipal bonds and for government and agency securities.