NOTE 8: FAIR VALUE

The Company utilizes fair value measurements to record fair value adjustments to certain financial assets and to determine fair value disclosures.

Fair Value Measurements and Disclosure Topic 820 of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories:

Level 1 – Quoted unadjusted prices for identical instruments in active markets.

Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets.

Level 3 – Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company.

The primary objective of the Company’s investment activities is to preserve principal while maximizing yields without significantly increasing risk. The investment instruments held by the Company are money market funds and interest bearing deposits for which quoted market prices are readily available. The Company considers these highly liquid investments to be cash equivalents. These investments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company does not have any material financial liabilities that were required to be measured at fair value on a recurring basis at September 30, 2016. The table below presents the recorded amount of financial assets measured at fair value (in thousands) on a recurring basis as of September 30, 2016 and December 31, 2015.

September 30, 2016	Level 1		Level 2		Level 3		Total
Assets
Money Market Funds – Fidelity, US	$	1,012	$	—	$	—	$	1,012
Interest bearing deposits – various banks		22,534		—		—		22,534
Total assets	$	23,546	$	—	$	—	$	23,546
Amounts included in:
Cash and cash equivalents	$	16,993	$	—	$	—	$	16,993
Restricted cash		740		—		—		740
Long-term restricted cash		5,813		—		—		5,813
Total	$	23,546	$	—	$	—	$	23,546

December 31, 2015	Level 1		Level 2		Level 3		Total
Assets
Money Market Funds – Fidelity, US	$	319	$	—	$	—	$	319
Interest bearing deposits – various banks		14,134		—		—		14,134
Total assets	$	14,453	$	—	$	—	$	14,453
Amounts included in:
Cash and cash equivalents	$	8,281	$	—	$	—	$	8,281
Restricted cash		737		—		—		737
Long-term restricted cash		5,435		—		—		5,435
Total	$	14,453	$	—	$	—	$	14,453