XML 24 R14.htm IDEA: XBRL DOCUMENT
v3.24.3

INVESTMENTS | 9 Months Ended
--- | ---
Sep. 30, 2024
Investments, All Other Investments [Abstract] |
INVESTMENTS | INVESTMENTS 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 on-going 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 present the Company’s cash and financial assets that are measured at fair value on a recurring basis for each of the hierarchy levels (in thousands):
| September 30, 2024
| Cost |  | Unrealized Gains (Losses) |  | Accrued Interest |  | Estimated Fair Value |  | Cash & Cash Equivalents |  | Investment Securities
Cash and cash equivalents, excluding money market accounts | $ | 110,296 |  | $ | — |  | $ | — |  | $ | 110,296 |  | $ | 110,296 |  | $ | —
Level 1: |  |  |  |  |  |  |  |  |  |  |
Money market accounts | 5,011 |  | — |  | — |  | 5,011 |  | 5,011 |  | —
Government & agency securities | 16,600 |  | 118 |  | 114 |  | 16,832 |  | — |  | 16,832
Equity securities | 10,000 |  | (3,584) |  | — |  | 6,416 |  | — |  | 6,416
| 31,611 |  | (3,466) |  | 114 |  | 28,259 |  | 5,011 |  | 23,248
Level 2: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | 30,742 |  | 344 |  | 314 |  | 31,400 |  | — |  | 31,400
Total | $ | 172,649 |  | $ | (3,122) |  | $ | 428 |  | $ | 169,955 |  | $ | 115,307 |  | $ | 54,648
| December 31, 2023
| Cost |  | Unrealized Gains |  | Accrued Interest |  | Estimated Fair Value |  | Cash & Cash Equivalents |  | Investment Securities
Cash and cash equivalents, excluding money market accounts | $ | 88,778 |  | $ | — |  | $ | — |  | $ | 88,778 |  | $ | 88,778 |  | $ | —
Level 1: |  |  |  |  |  |  |  |  |  |  |
Money market accounts | 5,662 |  | — |  | — |  | 5,662 |  | 5,662 |  | —
Government & agency securities | 15,282 |  | 126 |  | 40 |  | 15,448 |  | — |  | 15,448
Equity securities | 10,000 |  | 150 |  | — |  | 10,150 |  | — |  | 10,150
| 30,944 |  | 276 |  | 40 |  | 31,260 |  | 5,662 |  | 25,598
Level 2: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | 29,440 |  | 293 |  | 270 |  | 30,003 |  | — |  | 30,003
Total | $ | 149,162 |  | $ | 569 |  | $ | 310 |  | $ | 150,041 |  | $ | 94,440 |  | $ | 55,601
The Company had $8 thousand and $0 realized gains for the three months ended September 30, 2024 and 2023. The Company had $82 thousand and $0 realized gains for the nine months ended September 30, 2024 and 2023. During the fourth quarter of 2023, the Company entered into an agreement with LifeMD, Inc (Nasdaq: LFMD), a leading provider of virtual primary care, to purchase shares of common stock of LifeMD for $10 million. The 180-day lock-up period expired on June 8, 2024, and the registration process was completed, effective July 18, 2024. The fair value of the investment is recorded within the investment securities of the Condensed Consolidated Balance Sheets. The losses related to the Company’s LifeMD investment for the three and nine months ended September 30, 2024 and 2023 are summarized in the table below (in thousands):
| Three months ended September 30,
| 2024 |  | 2023
Net losses recognized during the period on equity securities | $ | (1,984) |  |  | $ | — |
Less: Net losses recognized on equity securities sold | — |  |  | — |
Unrealized losses recognized during the reporting period on equity securities still held at the reporting date | $ | (1,984) |  |  | $ | — |
| Nine months ended September 30,
| 2024 |  | 2023
Net losses recognized during the period on equity securities | $ | (3,734) |  |  | $ | — |
Less: Net losses recognized on equity securities sold | — |  |  | — |
Unrealized losses recognized during the reporting period on equity securities still held at the reporting date | $ | (3,734) |  |  | $ | — |
In December 2023, the Company concurrently entered into an agreement in which LifeMD would provide services to stand-up the collaboration between LifeMD and the Company. The agreement stipulated an initial milestone payment of $5 million due upon execution of the agreement for these services. The services under the initial milestone were completed prior to December 31, 2023, and this amount was included in the Company’s selling, general, and administrative expenses on the consolidated statement of income on the Company’s Form 10-K for the year ended December 31, 2023. The Company made a second milestone payment under the agreement of $2.5 million on March 18, 2024. Of the total $2.5 million second milestone payment, $1.3 million was recognized within selling, general, and administrative expenses for services performed by LifeMD for the quarter ended March 31, 2024, with the remaining $1.2 million recognized in the quarter ended June 30, 2024. The final milestone payment of $2.5 million was made on June 5, 2024. Of the total $2.5 million final milestone payment, $0.8 million was recognized within selling, general, and administrative expenses for services performed by LifeMD for the quarter ended June 30, 2024, with the remaining $1.7 million recognized in the quarter ended September 30, 2024.

X
- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAllOtherInvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration