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Fair Value of Financial Instruments
9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

Note 3 – Fair Value of Financial Instruments

 

The estimated fair values of financial instruments outstanding were (in thousands):

 

   September 30, 2022 (Unaudited) 
       Unrealized   Unrealized   Fair 
   Cost   Gains   Losses   Value 
Short-term investments  $18,372   $   $(53)  $18,319 
Total  $18,372   $   $(53)  $18,319 

 

   December 31, 2021 
       Unrealized   Unrealized   Fair 
   Cost   Gains   Losses   Value 
Short-term investments  $23,040   $   $(29)  $23,011 
Total  $23,040   $   $(29)  $23,011 

 

 

The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) (in thousands):

 

   Fair Value   Level 1   Level 2   Level 3 
   September 30, 2022 (Unaudited) 
   Fair Value   Level 1   Level 2   Level 3 
Money market funds  $2,319   $2,319   $   $ 
Corporate notes and commercial paper   18,319    18,319         
Total financial assets  $20,638   $20,638   $   $ 

 

   Fair Value   Level 1   Level 2   Level 3 
   December 31, 2021 
   Fair Value   Level 1   Level 2   Level 3 
Money market funds  $5,484   $5,484   $   $ 
Corporate notes and commercial paper   23,011    23,011         
Total financial assets  $28,495   $28,495   $   $ 

 

As of September 30, 2022, the fair value of the derivative liability was $57,000. The details of derivative liability transactions for the nine months ended September 30, 2022 and 2021, are as follows:

 

   September 30, 2022   September 30, 2021   September 30, 2022   September 30, 2021 
   Three Months Ending   Nine Months Ending 
   September 30, 2022   September 30, 2021   September 30, 2022   September 30, 2021 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Beginning balance  $115,000   $842,000   $138,000   $383,000 
Issuance of warrants                
Change in fair value  $(58,000)  $(502,000)  $(81,000)  $(43,000)
Extinguishment                
Ending balance  $57,000   $340,000   $57,000   $340,000