Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2021

Fair Value of Financial Instruments

Fair Value of Financial Instruments

14. Fair Value of Financial Instruments:

The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value:

Cash:  

The carrying amount approximates fair value because of the short maturity of those instruments.

Receivables:  

The carrying amount approximates fair value because of the short-term maturity of those receivables.

Accounts Payable:  

The carrying amount approximates fair value because of the short-term maturity of those debts.

Debt:  

It was not practicable to estimate the fair value of the Company’s notes payable and its subordinated convertible debentures because these debts are in default causing no basis for estimating value by reference to quoted market prices or current rates offered to the Company for debt of the same remaining maturities.

The estimated fair values of the Company’s financial instruments are as follows:

	2021				2020
	($ in thousands)
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Cash	$	58	$	58	$	81	$	81
Accounts payable		-		-		3		3
Debt		9,223		-		9,223		-