Investments

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

6. INVESTMENTS

Debt Securities and Other Investments

The following debt securities and other investments were included on the Condensed Consolidated Balance Sheets and recorded at fair value as of December 31, 2022:


	As of December 31, 2022
	Amortized		Gross Unrealized					Fair
(In thousands)	Cost		Gains		Losses			Value
Corporate bonds	$	2,538	$	5	$	(81	)	$	2,462
Municipal fixed-rate bonds		185		—		(5	)		180
Asset-backed bonds		818		1		(24	)		795
Mortgage/Agency-backed bonds		1,853		—		(105	)		1,748
U.S. government bonds		3,870		3		(188	)		3,685
Foreign government bonds		407		—		(24	)		383
Available-for-sale debt securities held at fair value	$	9,671	$	9	$	(427	)	$	9,253

The Company did not have any debt securities and other investments as of September 30, 2023.

Realized gains and losses on sales of debt securities are computed under the specific identification method. The following table presents the gross realized gains and losses related to its debt securities:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In thousands)	2023			2022			2023			2022
Gross realized gain on debt securities	$	5		$	1		$	9		$	14
Gross realized loss on debt securities		(317	)		(116	)		(355	)		(242	)
Total loss recognized, net	$	(312	)	$	(115	)	$	(346	)	$	(228	)

Income generated from available-for-sale debt securities was recorded as interest and dividend income in the Condensed Consolidated Statements of Loss. No allowance for credit losses was recorded for the nine months ended September 30, 2023 and 2022 related to available-for-sale debt securities. The Company’s investment policy provides limitations for issuer concentration, which limits, at the time of purchase, the concentration in any one issuer to 5.0% of the market value of its total investment portfolio. The Company did not purchase any available-for-sale debt security with credit deterioration during the nine months ended September 30, 2023.

Realized and unrealized gains and losses related to marketable equity securities were as follows:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In thousands)	2023			2022			2023		2022
Unrealized gain (loss) on equity securities held	$	(1,130	)	$	(1,217	)	$	1,404	$	(8,849	)
Realized gain (loss) on equity securities sold		(1	)		(1,358	)		13		(1,675	)
Total gain (loss) recognized, net	$	(1,131	)	$	(2,575	)	$	1,417	$	(10,524	)

Income generated from marketable equity securities was recorded as interest and dividend income in the Condensed Consolidated Statements of Loss. U.S. GAAP establishes a three-level valuation hierarchy based upon observable and unobservable inputs for fair value measurement of financial instruments:

• Level 1 – Observable outputs; values based on unadjusted quoted prices for identical assets or liabilities in an active market;

• Level 2 – Significant inputs that are observable; values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly;

• Level 3 – Significant unobservable inputs; values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs could include information supplied by investees.

The Company’s cash equivalents and investments held at fair value are categorized into this hierarchy as follows:


			Fair Value Measurements as of September 30, 2023 Using
(In thousands)	Fair Value		Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash equivalents
U.S. government securities	$	—	$	—	$	—	$	—
Money market funds		5,245		5,245		—		—
Commercial paper		—		—		—		—
Total cash equivalents	$	5,245	$	5,245	$	-	$	—
Marketable equity securities
Marketable equity securities – various industries		815		815		—		—
Deferred compensation plan assets		24,364		24,364		—		—
Total long-term investments	$	25,179	$	25,179	$	—	$	—
Total	$	30,424	$	30,424	$	—	$	—


			Fair Value Measurements as of December 31, 2022 Using
(In thousands)	Fair Value		Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash equivalents
Money market funds	$	228	$	228	$	—	$	—
Total cash equivalents	$	228	$	228	$	—	$	—
Available-for-sale debt securities
Corporate bonds	$	2,462	$	—	$	2,462	$	—
Municipal fixed-rate bonds		180		—		180		—
Asset-backed bonds		795		—		795		—
Mortgage/Agency-backed bonds		1,748		—		1,748		—
U.S. government bonds		3,685		3,685		—		—
Foreign government bonds		383		—		383		—
Marketable equity securities
Marketable equity securities – various industries		810		810		—		—
Deferred compensation plan assets		22,942		22,942		—		—
Total short-term and long-term investments	$	33,005	$	27,437	$	5,568	$	-
Total	$	33,233	$	27,665	$	5,568	$	—

The fair value of its Level 2 securities is calculated using a weighted average market price for each security. Market prices are obtained from a variety of industry standard data providers, large financial institutions and other third-party sources. These multiple market prices are used as inputs into a distribution-curve-based algorithm to determine the daily market value of each security.