Financial Instruments

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

FINANCIAL INSTRUMENTS

Cash, Cash Equivalents, and Marketable Securities (Available for Sale)

Per a revised investment strategy policy, the Company engaged a third party registered investment advisor and appointed a leading national bank for custody services with respect to investment securities, making an initial deposit of $60 million on April 18, 2022. Investments comply with the Company’s revised investment strategy policy, designed to preserve capital, minimize investment risks, and maximize returns.

The following table shows the Company’s cash, cash equivalents, and marketable securities by significant investment category as of December 31, 2022:


	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Current Marketable Securities (1)		Non-Current Marketable Securities (2)
Cash and cash equivalents	$	14,583,955	$	—	$	—	$	14,583,955	$	14,583,955	$	—	$	—
Level 1 (3)
Commercial paper	9,777,252		—		(2,131)		9,775,121		9,775,121		—		—
Money market funds	241,884		—		—		241,884		241,884		—		—
US Treasury securities	11,972,036		—		(206,439)		11,765,597		—		4,926,950		6,838,647
Subtotal	21,991,172		—		(208,570)		21,782,602		10,017,005		4,926,950		6,838,647
Level 2 (4)
Asset back securities	12,173,193		—		(154,576)		12,018,617		—		4,971,754		7,046,863
Corporate debt securities	22,036,262		—		(417,649)		21,618,613		—		6,208,054		15,410,559
Subtotal	34,209,455		—		(572,225)		33,637,230		—		11,179,808		22,457,422
Total	$	70,784,582	$	—	$	(780,795)	$	70,003,787	$	24,600,960	$	16,106,758	$	29,296,069

(1) Current Marketable Securities have a holding period under one year.

(2) Non-Current Marketable Securities have a holding period over one year. The securities held by IZEA Worldwide, Inc. mature between one and five years.

(3) Level 1 fair value estimates are based on quoted prices in active markets for identical assets and liabilities.

(4) Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets and liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities.

The Company records the fair value of cash equivalents and marketable securities on the balance sheet. The adjusted cost, which includes unrealized gains and losses, reflects settlement amounts if all investments are held to maturity. The Company recognized realized gains (net of losses) of $2,501 for the twelve months ended December 31, 2022. Realized gains and losses are a component of other income (expense), net. Unrealized gains and losses are a component of other comprehensive income (loss) (“OCI”).

The following table summarizes the estimated fair value of investments in marketable debt securities by stated contractual maturity dates:


	As of December 31, 2022
Due in 1 year or less	$	16,106,758
Due in 1 year through 5 years	29,296,069
Total	$	45,402,827

The following table presents fair values and net unrealized gains (losses) recorded to OCI, aggregated by investment category:


	As of December 31, 2022
	Fair Value		Net Unrealized Gain (Loss)
Cash and cash equivalents	$	24,600,960	$	(2,131)
Government bonds	11,765,597		(206,439)
Corporate debt securities	21,618,613		(417,649)
Asset backed securities	12,018,617		(154,576)
Total	$	70,003,787	$	(780,795)

During the twelve months ended December 31, 2022, the Company did not recognize any significant credit losses and had no ending allowance balance for credit losses.