MARKETABLE SECURITIES

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

ASC 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 has elected to classify 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 December 31:


($ in thousands)		2023				2022
Marketable Securities:	Fair Value Hierarchy	Cost		Estimated Fair Value		Cost		Estimated Fair Value
Certificates of deposit
with unrecognized losses for less than 12 months		$	174	$	174	$	—	$	—

with unrecognized gains		385		385		—		—
Total Certificates of deposit	Level 1	559		559		—		—
U.S. Treasury and agency notes
with unrecognized losses for less than 12 months		13,797		13,787		13,916		13,832
with unrecognized losses for more than 12 months		—		—		500		499
with unrecognized gains		2,374		2,374		1,250		1,251
Total U.S. Treasury and agency notes	Level 2	16,171		16,161		15,666		15,582
Corporate notes
with unrecognized losses for less than 12 months		15,598		15,587		17,236		17,112
with unrecognized losses for more than 12 months		—		—		251		250
with unrecognized gains		249		249		499		500
Total Corporate notes	Level 2	15,847		15,836		17,986		17,862






		$	32,577	$	32,556	$	33,652	$	33,444

The Company uses 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 December 31, 2023 the Company has not recorded any credit losses.

At December 31, 2023, the fair market value of investment securities was $21,000 below the cost basis of securities. The Company’s gross unrealized holding losses equal $21,000. As of December 31, 2023, the adjustment to accumulated other comprehensive loss in consolidated equity for the temporary change in the value of securities reflects a decrease in the market value of available-for-sale securities of $187,000, which includes estimated taxes of $52,000.

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 326-30-50-3A. The accrued interest receivables balance totaled $279,000 as of December 31, 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 December 31, 2023 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 December 31, 2023, the Company did not intend to sell these securities and it is not more-likely-than-not that 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 December 31, 2023.

Corporate notes

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 December 31, 2023, the Company did not intend to sell these securities and it is not more-likely-than-not that 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 December 31, 2023.

The following tables summarize the maturities, at par, of marketable securities by year ($ in thousands):


December 31, 2023	2024		Total
Certificates of deposit	$	560	$	560
U.S. Treasury and agency notes	$	16,212	$	16,212
Corporate notes	15,880		15,880

	$	32,652	$	32,652


December 31, 2022	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.