MARKETABLE SECURITIES

9 Months Ended

Sep. 30, 2024

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 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:


($ in thousands)		September 30, 2024				December 31, 2023
Marketable Securities:	Fair Value Hierarchy	Cost		Fair Value		Cost		Fair Value
Certificates of deposit
with unrealized losses for less than 12 months		$	—	$	—	$	174	$	174

with unrealized gains		—		—		385		385
Total Certificates of deposit	Level 1	—		—		559		559
U.S. Treasury and agency notes
with unrealized losses for less than 12 months		2,145		2,145		13,797		13,787

with unrealized gains		10,231		10,252		2,374		2,374
Total U.S. Treasury and agency notes	Level 2	12,376		12,397		16,171		16,161
Corporate notes
with unrealized losses for less than 12 months		996		996		15,598		15,587
with unrealized losses for more than 12 months		500		499		—		—
with unrealized gains		—		—		249		249
Total Corporate notes	Level 2	1,496		1,495		15,847		15,836






		$	13,872	$	13,892	$	32,577	$	32,556

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 September 30, 2024, the Company has not recorded any credit losses.

As of September 30, 2024, the fair market value of investment securities was $20,000 above their cost basis. The Company’s gross unrealized holding gains equaled $21,000 and gross unrealized holding losses equaled $1,000. For the three months ended September 30, 2024, the adjustment to accumulated other comprehensive loss reflected an increase in market value of $46,000, including estimated taxes of $13,000. For the nine months ended September 30, 2024, the adjustment to accumulated other comprehensive loss reflected a decline in market value of $40,000, including estimated taxes of $11,000.

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. The accrued interest receivables balance totaled $114,000 as of September 30, 2024 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, 2024 and December 31, 2023 were caused by relative changes in interest rates since the time of purchase and not changes in credit quality. The contractual cash flows for these securities are guaranteed by U.S. government agencies. As of September 30, 2024 and 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 September 30, 2024 and 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 September 30, 2024 and December 31, 2023, 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, 2024 and December 31, 2023.

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


	September 30, 2024
($ in thousands)	2024		2025		Total

U.S. Treasury and agency notes	$	4,786	$	7,650	$	12,436
Corporate notes	1,500		—		1,500

	$	6,286	$	7,650	$	13,936


	December 31, 2023
($ in thousands)	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

The Company’s investments in corporate notes are with companies that have an investment grade rating from Standard & Poor’s as of September 30, 2024.