Note 5 - Fair Value Measurements

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Fair Value Disclosures [Text Block]

5. Fair Value Measurements

Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants based on assumptions that market participants would use in pricing an asset or liability. As a basis for classifying the fair value measurements, a

three

-tier fair value hierarchy, which classifies the fair value measurements based on the inputs used in measuring fair value, was established as follows: (Level

1

) observable inputs such as quoted prices in active markets for identical assets or liabilities; (Level

2

) significant other observable inputs that are observable either directly or indirectly; and (Level

3

) significant unobservable inputs for which there is little or

no

market data, which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. On a recurring basis, the Company records its investments at fair value.

The Company’s investments are all classified within Level

2

of the fair value hierarchy. These investments classified within Level

2

of the fair value hierarchy are valued based on matrix pricing compiled by

third

party pricing vendors, using observable market inputs such as interest rates, yield curves, and credit risk.

The fair value hierarchy of the Company’s cash equivalents and investments at fair value is as follows:

			Fair Value Measurements at Reporting Date Using
	September 30, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash equivalents:
Money market funds	$	5,324	$	-	$	5,324	$	-
Investments:
Bank certificates of deposit	$	25,750	$	-	$	25,750	$	-

			Fair Value Measurements at Reporting Date Using
	December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash equivalents:
Money market funds	$	68,352	$	-	$	68,352	$	-
Bank certificates of deposit		750		-		750		-
Total cash equivalents	$	69,102	$	-	$	69,102	$	-
Investments:
Bank certificates of deposit	$	20,500	$	-	$	20,500	$	-