Note 2 - Fair Value Measurement

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Fair Value Disclosures [Text Block]

2. Fair Value Measurement

In accordance with FASB ASC Topic

820,

“Fair Value Measurements and Disclosures,” (“ASC Topic

820”

), the Company measures its cash and cash equivalents and short-term investments at fair value on a recurring basis. ASC Topic

820

clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC Topic

820

establishes a

three

-tier value fair hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level

1

– Observable inputs that reflect quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level

2

– Observable inputs other than quoted prices included in Level

1

for similar assets or liabilities, quoted prices in markets that are

not

active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

Level

3

– Unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

As of

June 30, 2019

and

December 31, 2018,

the Company does

not

have liabilities that are measured at fair value.

The following tables set forth the Company’s financial assets measured at fair value on a recurring basis as of 

June 30, 2019

and 

December 

31,

2018,

based on the

three

-tier fair value hierarchy:

As of June 30, 2019	Level 1		Level 2		Level 3		Total
Assets:
Total cash and cash equivalents	$	19,617	$	—	$	—	$	19,617
Liabilities:
Contingent consideration - business combinations	$	—	$	—	$	1,931	$	1,931

As of December 31, 2018	Level 1		Level 2		Total
Total cash and cash equivalents	$	30,657	$	—	$	30,657

The fair values of cash and cash equivalents classified as Level

1

were derived from quoted market prices as active markets for these instruments exist. The fair value of contingent consideration classified as Level

3

is described in Note

3.

There was

no

change in contingent consideration from the acquisition date to

June 30, 2019,

during the

three

and

six

months ended

June 30, 2019.

The Company has

no

level

2

or level

3

financial assets. The Company did

not

have any transfers between Level

1

and Level

2

of the fair value hierarchy during the

six

months ended

June 30, 2019

and the

twelve

months ended

December 31, 2018.