Investments

6 Months Ended

Jun. 30, 2022

Investments

4- Investments

(4) Investments

As of June 30, 2022, we held investments in commercial paper, bonds, money market accounts, mutual funds, and equity securities. The commercial paper and bonds are considered held-to-maturity and are recorded at amortized cost in the accompanying consolidated balance sheets. The money market accounts, equity securities, and mutual funds are recorded at fair value in the accompanying consolidated balance sheets. The fair values of these investments were estimated using recently executed transactions and market price quotations. We consider as current assets those investments which will mature in the next 12 months including interest receivable on the long-term bonds. The remaining investments are considered non-current assets including our investments in equity securities we intend to hold longer than 12 months.

The components of the Company’s cash and cash equivalents and our short- and long-term investments are as follows (in thousands):

	June 30,  2022			December 31, 2021
Cash and cash equivalents:
Money market funds	$	6,979		$	29,876
Commercial paper		7,841			-
Cash deposits		1,617			2,388
Total cash and cash equivalents	$	16,437		$	32,264
Short-term investments:
Commercial paper (held-to-maturity)	$	20,495		$	2,248
Bonds (held-to-maturity)		13,418			26,831
Equity securities (available for sale)		243			-
Allowance for credit losses		(10	)		(20	)
Total short-term investments	$	34,146		$	29,059
Long-term investments:
Bonds (held-to-maturity)	$	10,586		$	13,405
Equity securities (available for sale)		4,828			5,468
Mutual funds (available for sale)		385			559
Allowance for credit losses		(5	)		(9	)
Total long-term investments	$	15,794		$	19,423
Total cash, cash equivalents and short and long-term investments	$	66,377		$	80,746

We utilize a lifetime “expected credit loss” measurement objective for the recognition of credit losses for held-to-maturity securities at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. Our credit loss calculations for held-to-maturity securities are based upon historical default and recovery rates of bonds rated with the same rating as our portfolio. We also apply an adjustment factor to these credit loss calculations based upon our assessment of the expected impact from current economic conditions on our investments. We monitor the credit quality of debt securities classified as held-to-maturity through the use of their respective credit ratings and update them on a quarterly basis with our latest assessment completed on June 30, 2022. During the second quarter of 2022, our allowance for credit losses related to short-term investments decreased by $3 thousand and our allowance for credit losses related to long-term investments decreased by $2 thousand.

The following table summarizes the amortized cost of our held-to-maturity bonds at June 30, 2022 aggregated by credit quality indicator (in thousands):

 Held-to-Maturity Bonds

Credit Quality Indicators	Fed Govt. Bonds/Notes		Municipal Bonds		Corporate Bonds		Totals
AAA/AA/A	$	2,243	$	630	$	8,547	$	11,420
BBB/BB		-		-		12,585		12,585
TOTAL	$	2,243	$	630	$	21,132	$	24,005

Our investments are required to be measured for disclosure purposes at fair value on a recurring basis. Our investments are considered Level 1 or Level 2 as detailed in the table below. The fair values of these investments were estimated using recently executed transactions and market price quotations. The amortized cost and fair value of our investments, and the related gross unrealized gains and losses, were as follows as of the dates shown below (in thousands):

				Gross Unrealized
	Level	Cost		Gains		Losses			Fair Value
As of June 30, 2022:
Money market	1		6,979	$	-	$	-		$	6,979
Commercial paper	2		28,337	$	-	$	(37	)	$	28,300
Bonds	2		24,005	$	2	$	(275	)	$	23,732
Mutual funds	1		476	$	-	$	(91	)	$	385
Equity investments	2		6,054	$	-	$	(983	)	$	5,071
As of December 31, 2021:
Money Market	1		29,876	$	-	$	-		$	29,876
Commercial paper	2		2,248	$	-	$	-		$	2,248
Bonds	2		40,236	$	97	$	(37	)	$	40,296
Mutual funds	1		558	$	1	$	-		$	559
Equity investments	2		5,675	$	-	$	(207	)	$	5,468

The carrying value of our investments is reviewed quarterly for changes in circumstances or the occurrence of events that suggests an investment may not be fully recoverable. The bonds represent investments in various issuers at June 30, 2022. The unrealized losses for some of these bond investments reflect changes in interest rates following their acquisition. As of June 30, 2022, we had six bond investments in a loss position for more than 12 months.

At June 30, 2022, the length of time until maturity of the commercial paper we owned ranged from less than a month to six months and the length of time to maturity for the bonds ranged from less than a month to 42 months.

As of June 30, 2022, there were expenditures of $2.4 million related to property, plant, and equipment included in our accounts payable and accrued liabilities balance.