Note 3 - Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]

3. Fair Value of Financial Instruments

Financial instruments (principally cash and cash equivalents, accounts receivable, accounts payable and accrued expenses) are carried at cost, which approximates fair value due to the short-term maturity of these instruments. The Company’s long-term credit facility is carried at cost, which due to the variable interest rate associated with the revolving credit facility, cost approximates its fair value. The Company has

no

Level

1

or Level

2

financial instruments and there were

no

transfers between Level

1

or Level

2

financial instruments. Included in Other liabilities on the Consolidated Balance Sheet is a contingent consideration liability of

$0

and

$35

thousand at

December 31, 2018

and

2017,

respectively, is valued using a Monte Carlo simulation and includes unobservable inputs such as expected levels of revenues and discount rates. The liability was classified as level

3

within the fair value hierarchy. Changes in the unobservable inputs in the fair value measurement of this instrument could result in a significant change in the fair value measurement. There were

no

sales, settlements, purchases, issuances and/or transfers related to this level

3

instrument in

2018

or

2017.

There were

no

other level

3

instruments.