Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS

v3.21.2
FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

NOTE 5 – FAIR VALUE MEASUREMENTS

 

We calculate the fair value of our assets and liabilities that qualify as financial instruments and include additional information in the notes to the consolidated financial statements when the fair value is different than the carrying value of these financial instruments. The estimated fair value of prepaid expenses and other current assets, other assets, accounts payable, accrued expenses, loan payable, payable to licensor and contract liability approximate their carrying amounts due to the relatively short maturity of these instruments.

 

U.S. GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. This guidance establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The lowest level fair value inputs are used to assign a fair value level. The three levels of inputs used to measure fair value are as follows:

 

  ● Level 1 - Quoted prices in active markets for identical assets or liabilities.
  ● Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
  ● Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar valuation techniques that use significant unobservable inputs.

 

We have segregated all financial assets and liabilities that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below.

 

Financial assets and liabilities measured at fair value on a recurring and non-recurring basis as of September 30, 2021 and December 31, 2020 are summarized below:

 

Description  

September 30, 2021

     Level 1     Level 2     Level 3     Total Gains/(Losses)  
Recurring                                        
Assets:                                                                     
Short-term investments   $ 23,217,000     $ -     $ 23,217,000     $ -     $ -  
                                            
Non-recurring                                        
Assets:                                        
Licensed technology, net   $ 1,413,000     $ -     $ -     $ 1,413,000     $ -  
Goodwill     32,466,000       -       -       32,466,000       -  

 

Description  

December 31, 2020

     Level 1     Level 2     Level 3     Total Gains/(Losses)  
Recurring                                                                    
Assets:                                        
Short-term investments   $ 82,438,000     $ -     $ 82,438,000     $ -     $ -  
                                         
Non-recurring                                        
Assets:                                        
Licensed technology, net   $ 1,500,000     $ -     $ -     $ 1,500,000     $ (32,916,000 )
Goodwill     32,466,000       -       -       32,466,000       -