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Investments
 9 Months Ended
Sep. 30, 2023
Investments  
Investments

(4)  Investments 

As of September 30, 2023, we held investments in bonds, money market accounts, mutual funds, and equity securities. The 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 which 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):

 

 

 

September 30,

2023

 

 

December 31,

2022

 

Cash and cash equivalents:

 

 

 

 

 

 

Money market funds

 

$656

 

 

$2,380

 

Cash deposits

 

 

2

 

 

 

603

 

Commercial paper

 

 

-

 

 

 

1,748

 

Total cash and cash equivalents

 

$658

 

 

$4,731

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

Bonds (held-to-maturity)

 

$3,748

 

 

$8,597

 

Equity securities (available for sale)

 

 

91

 

 

 

330

 

Commercial paper (held-to-maturity)

 

 

-

 

 

 

12,227

 

Allowance for credit losses

 

 

-

 

 

 

(2)

Total short-term investments

 

$3,839

 

 

$21,152

 

Long-term investments:

 

 

 

 

 

 

 

 

Equity securities (available for sale)

 

$3,910

 

 

$5,139

 

Bonds (held-to-maturity)

 

 

3,839

 

 

 

3,180

 

Mutual funds (available for sale)

 

 

1,725

 

 

 

350

 

Total long-term investments

 

$9,474

 

 

$8,669

 

Total cash, cash equivalents and short and long-term investments

 

$13,971

 

 

$34,552

 

 

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. During the third quarter of 2023, our allowance for credit losses was immaterial.

The following table summarizes the amortized cost of our held-to-maturity bonds at September 30, 2023 aggregated by credit quality indicator (in thousands):

 

Held-to-Maturity Bonds

 

Credit Quality Indicators

 

Fed Govt.

Bonds/Notes

 

 

Corporate

Bonds

 

 

Totals

 

AAA/AA/A

 

$104

 

 

$3,693

 

 

$3,797

 

BBB/BB

 

 

-

 

 

 

3,790

 

 

 

3,790

 

TOTAL

 

$104

 

 

$7,483

 

 

$7,587

 

 

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 September 30,  2023:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market

 

 

1

 

 

 

656

 

 

$-

 

 

$-

 

 

$656

 

Commercial paper

 

 

2

 

 

 

-

 

 

$-

 

 

$-

 

 

$-

 

Bonds

 

 

2

 

 

 

7,587

 

 

$4

 

 

$(144)

 

$7,447

 

Mutual funds

 

 

1

 

 

 

1,781

 

 

$-

 

 

$(56)

 

$1,725

 

Equity investments

 

 

2

 

 

 

6,054

 

 

$-

 

 

$(2,053)

 

$4,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market

 

 

1

 

 

 

2,380

 

 

$-

 

 

$-

 

 

$2,380

 

Commercial paper

 

 

2

 

 

 

13,975

 

 

$1

 

 

$(9)

 

$13,967

 

Bonds

 

 

2

 

 

 

11,777

 

 

$-

 

 

$(353)

 

$11,424

 

Mutual funds

 

 

1

 

 

 

466

 

 

$-

 

 

$(116)

 

$350

 

Equity investments

 

 

2

 

 

 

6,054

 

 

$-

 

 

$(585)

 

$5,469

 

 

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 September 30, 2023. The unrealized losses for some of these bond investments reflect changes in interest rates following their acquisition. As of September 30, 2023, we had six bond investments in a loss position for more than 12 months.

 

At September 30, 2023, the length of time to maturity for the bonds we held ranged from less than a month to 27 months.