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Note 9 - Fair Value Measurements
3 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

NOTE 9 FAIR VALUE MEASUREMENTS

 

We record fair values at 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 determined based on assumptions that market participants would use in pricing an asset or liability. We utilize a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers are: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

 

As of March 31, 2024, we had equity securities and an equity method fair value option (refer to Note 6), forward foreign currency exchange contracts for inventory purchases (refer to Note 10). In addition, in connection with our investment and our consulting agreement with BioCardia, we record the related BioCardia options at fair value as well as warrants from COCP.

 

Our financial assets and liabilities measured at fair value on a recurring basis are as follows:

 

  

Fair value measurements as of March 31, 2024

 
  

Quoted

             
  

prices in

             
  

active

  

Significant

         
  

markets for

  

other

  

Significant

     
  

identical

  

observable

  

unobservable

     
  

assets

  

inputs

  

inputs

     

(In thousands)

 

(Level 1)

  

(Level 2)

  

(Level 3)

  

Total

 

Assets:

                

Money market funds

 $25,607  $  $  $25,607 

Equity securities

  183         183 

Equity Method - Fair value option

  32,490         32,490 

Common stock options

     3      3 

Total assets

 $58,280  $3  $  $58,283 

Liabilities:

                

Embedded conversion option

        151,870   151,870 

Total liabilities

 $  $  $151,870  $151,870 

 

  

Fair value measurements as of December 31, 2023

 
  

Quoted

             
  

prices in

             
  

active

  

Significant

         
  

markets for

  

other

  

Significant

     
  

identical

  

observable

  

unobservable

     
  

assets

  

inputs

  

inputs

     

(In thousands)

 

(Level 1)

  

(Level 2)

  

(Level 3)

  

Total

 

Assets:

                

Money market funds

 $32,404  $  $  $32,404 

Equity securities

  116        $116 

Equity Method - fair value option

  9,786         9,786 

Common stock options/warrants

     2      2 

Total assets

 $42,306  $2  $  $42,308 

Liabilities:

                

Forward contracts

     29      29 

Total liabilities

 $  $29  $  $29 

 

The carrying amount and estimated fair value of our 2029 Notes and 2025 Notes, as well as the applicable fair value hierarchy tiers, are contained in the table below. Additionally, the fair value of the 2029 Notes and 2025 Notes is determined using inputs other than quoted prices in active markets that are directly observable.

 

  

March 31, 2024

 
  

Carrying

  

Total

             

(In thousands)

 

Value

  

Fair Value

  

Level 1

  

Level 2

  

Level 3

 

2029 Notes

 $323,058  $320,507  $  $  $320,507 

2025 Notes

 $170  $167  $  $167  $ 

 

There have been no transfers between Level 1 and Level 2 and no transfers to or from Level 3 of the fair value hierarchy.

 

 

The following table reconcile the beginning and ending balances of our Level 3 assets and liabilities as of March 31, 2024.

 

  

March 31, 2024

 
  

Embedded conversion

 

(In thousands)

 

option

 

Balance at December 31, 2023

 $ 

Additions

  125,620 

Change in fair value:

    

Included in results of operations

  26,250 

Balance at March 31, 2024

 $151,870