MARKETABLE SECURITIES

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

ASC Topic 320, “Investments – Debt and Equity Securities,” requires that an enterprise classify all debt securities as either held-to-maturity, trading or available-for-sale. The Company classifies its securities as available-for-sale and therefore is required to adjust securities to fair value at each reporting date. All costs and both realized and unrealized gains and losses on securities are determined on a specific identification basis. The following is a summary of available-for-sale securities at:


($ in thousands)		September 30, 2023				December 31, 2022
Marketable Securities:	Fair Value Hierarchy	Cost		Fair Value		Cost		Fair Value





U.S. Treasury and agency notes
with unrealized losses for less than 12 months		$	16,873	$	16,827	$	13,916	$	13,832
with unrealized losses for more than 12 months		999		994		500		499
with unrealized gains		—		—		1,250		1,251
Total U.S. Treasury and agency notes	Level 2	17,872		17,821		15,666		15,582
Corporate notes
with unrealized losses for less than 12 months		11,262		11,235		17,236		17,112
with unrealized losses for more than 12 months		401		400		251		250
with unrealized gains		—		—		499		500
Total Corporate notes	Level 2	11,663		11,635		17,986		17,862






		$	29,535	$	29,456	$	33,652	$	33,444

ASC Topic 326, "Financial Instruments - Credit Losses," requires the Company to use an allowance approach when recognizing credit loss for available-for-sale debt securities, measured as the difference between the security's amortized cost basis and the amount expected to be collected over the security's lifetime. Under this approach, at each reporting date, the Company records impairment related to credit losses through earnings offset with an allowance for credit losses, or ACL. At September 30, 2023, the Company has not recorded any credit losses.

As of September 30, 2023, the fair market value of marketable securities was $79,000 below their cost basis. The Company’s gross unrealized holding gains equaled $0 and gross unrealized holding losses equaled $79,000. For the nine-months ended September 30, 2023, the adjustment to accumulated other comprehensive loss reflected an improvement in market value of $129,000, including estimated taxes of $36,000.

The Company elected to exclude applicable accrued interest from both the fair value and the amortized cost basis of the available-for-sale debt securities, and separately present the accrued interest receivable balance per ASC Topic 326. The accrued interest receivables balance totaled $213,000 as of September 30, 2023 and was included within the Prepaid expenses and other current assets line item of the Consolidated Balance Sheets. The Company elected not to measure an allowance for credit losses on accrued interest receivable, as an allowance on possible uncollectible accrued interest is not warranted.

U.S. Treasury and agency notes

The unrealized losses on the Company's investments in U.S. Treasury and agency notes at September 30, 2023 and December 31, 2022 were caused by relative changes in interest rates since the time of purchase. The contractual cash flows for these securities are guaranteed by U.S. government agencies. The unrealized losses on these debt security holdings are a function of changes in investment spreads and interest rate movements and not changes in credit quality. As of September 30, 2023 and December 31, 2022, the Company did not intend to sell these securities and it is not more-likely-than-not the Company would be required to sell these securities before recovery of their cost basis. Therefore, these investments did not require an ACL as of September 30, 2023 and December 31, 2022.

Corporate notes

The contractual terms of those investments do not permit the issuers to settle the securities at a price less than the amortized cost basis of the investments. The unrealized losses on corporate notes are a function of changes in investment spreads and interest rate movements and not changes in credit quality. The Company expects to recover the entire amortized cost basis of these securities. As of September 30, 2023 and December 31, 2022, the Company did not intend to sell these securities and it is not more-likely-than-not the Company would be required to sell these securities before recovery of their cost basis. Therefore, these investments did not require an ACL as of September 30, 2023 and December 31, 2022.

The following tables summarize the maturities, at par, of marketable securities as of:


	September 30, 2023
($ in thousands)	2023		2024		Total

U.S. Treasury and agency notes	$	7,070	$	10,866	$	17,936
Corporate notes	8,900		2,780		11,680

	$	15,970	$	13,646	$	29,616


	December 31, 2022
($ in thousands)	2023		2024		Total

U.S. Treasury and agency notes	$	15,225	$	500	$	15,725
Corporate notes	17,470		500		17,970

	$	32,695	$	1,000	$	33,695

The Company’s investments in corporate notes are with companies that have an investment grade rating from Standard & Poor’s as of September 30, 2023.