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Fair Value
 9 Months Ended
Sep. 30, 2016
Fair Value Disclosures [Abstract]  
Fair Value

7.        Fair Value

 

For certain of Solitario’s financial instruments, including cash and cash equivalents, short-term investments and payables, the carrying amounts approximate fair value due to their short term maturities. Solitario’s marketable equity securities are carried at their estimated fair value primarily based on quoted market prices. The Vendetta Warrants are carried at their estimated fair value at September 30, 2016 of $412,000; based upon a Black-Scholes valuation model, see Note 4, “Other Assets,” above.

 

Solitario accounts for its financial instruments under ASC 820. ASC 820 establishes a framework for measuring fair value and requires enhanced disclosures about fair value measurements. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820 also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows:

 

·Level 1: quoted prices in active markets for identical assets or liabilities;
·Level 2: quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or
·Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. During the three and nine months ended September 30, 2016 there were no reclassifications in financial assets or liabilities between Level 1, 2 or 3 categories.

 

The following is a listing of Solitario’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of September 30, 2016:

 

(in thousands) Level 1   Level 2   Level 3 Total  
Assets        
  Marketable equity securities $1,098  $      -    $         -    $1,098 
  United States Treasury securities 7,006  -      -    7,006 
  Bank Certificates of Deposit 8,500  -      -    8,500 
  Vendetta Warrants -      412   -    412 
Liabilities        
  Kinross covered calls 56  -      -    56 

 

The following is a listing of Solitario’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of December 31, 2015:

 

(in thousands) Level 1 Level 2 Level 3 Total
Assets        
  Marketable equity securities $202  $   -    $  -    $202 
Liabilities        
  RMB Warrants -    4  -    4