Annual report pursuant to Section 13 and 15(d)

Cash, Cash Equivalents, Restricted Cash and Marketable Securities

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Cash, Cash Equivalents, Restricted Cash and Marketable Securities
12 Months Ended
Dec. 31, 2021
Cash and Cash Equivalents [Abstract]  
Cash, Cash Equivalents, Restricted Cash and Marketable Securities

Note 4 – Cash, Cash Equivalents, Restricted Cash and Marketable Securities

 

The Company considers all highly liquid financial instruments with original maturities of three months or less when purchased to be cash and cash equivalents and all investments with maturities of greater than three months from date of purchase are classified as marketable securities. Cash and cash equivalents consisted of cash in bank checking and savings accounts, money market funds and short-term U.S. treasury bonds that mature within three months of settlement date.

 

Cash, Cash Equivalents and Restricted Cash

 

The Company presents restricted cash with cash and cash equivalents in the Consolidated Statements of Cash Flows. Restricted cash represents funds the Company is required to set aside to cover building operating leases and other purposes.

 

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the total of the amounts in the Consolidated Statements of Cash Flows as of December 31, 2021, December 31, 2020 and December 31, 2019 (in thousands):

 

    December 31,
2021
    December 31,
2020
    December 31,
2019
 
Cash and cash equivalents   $ 21,030     $ 12,432     $ 22,170  
Restricted cash included in current/long term assets     250       336       586  
Cash, cash equivalents and restricted cash in the statements of cash flows   $ 21,280     $ 12,768     $ 22,756  

 

Marketable Securities

 

The Company has classified its investments in marketable securities as available-for-sale and as a current asset. The Company’s investments in marketable securities are carried at fair value, with unrealized gains and losses included as a separate component of stockholders’ equity. Unrealized gains and losses are classified as other comprehensive (loss)/income and costs are determined on a specific identification basis. Realized gains and losses from our marketable securities are recorded in other income, net. For the years ended December 31, 2021 and 2020, the Company recorded unrealized (losses)/gains of approximately ($374) thousand and $238 thousand, respectively, and reclassed approximately $0 and $9 thousand to net realized loss from operations from the sale of certain securities during 2021 and 2020, respectively. As of December 31, 2021 and 2020, the Company had net accumulated unrealized losses of approximately $145 thousand and net accumulated unrealized gains of approximately $228 thousand, respectively.

 

 

The following tables summarizes the Company’s marketable securities for the year ended December 31, 2021 consisted of the following (in thousands):

 

    Amortized Cost     Unrealized Gain     Unrealized (Loss)     Fair Value  
    Amortized Cost    

Unrealized

Gain

    Unrealized (Loss)      
Fair Value
 
U.S. Government Notes   $ 19,395     $ 2     $ (120 )   $ 19,277  
Corporate Debt Securities     9,092             (27 )     9,065  
State and Municipal Bonds     250                   250  
Total marketable securities   $ 28,737     $ 2     $ (147 )   $ 28,592  

 

Maturities of debt securities classified as available-for-sale were as follows at December 31, 2021 (in thousands):

 

    Fair Value     Net Carrying Amount  
Due within one year   $ 8,257     $ 8,310  
Due after one year through five years     20,335       20,402  
    $ 28,592     $ 28,712  

 

The following tables summarizes the Company’s marketable securities for the year ended December 31, 2020 consisted of the following (in thousands):

 

    Amortized Cost     Unrealized Gain     Unrealized (Loss)     Fair Value  
    Amortized Cost     Unrealized Gain     Unrealized (Loss)      
Fair Value
 
U.S. Treasury Bonds   $ 18,293     $ 136     $     $ 18,429  
U.S. Government Notes     22,148       82             22,230  
Corporate Debt Securities     4,303       3             4,306  
State and Municipal Bonds     1,275       7             1,282  
Total marketable securities   $ 46,019     $ 228     $     $ 46,247  

 

Maturities of debt securities classified as available-for-sale were as follows at December 31, 2020 (in thousands):

 

    Fair Value     Net Carrying Amount  
Due within one year   $ 31,438     $ 31,602  
Due after one year through five years     14,809       14,845  
    $ 46,247     $ 46,447  

 

The Company determined that the unrealized (losses) and gains are deemed to be temporary as of December 31, 2021 and 2020. Unrealized (losses) and gains generally are the result of increases in the risk premiums required by market participants rather than an adverse change in cash flows for a fundamental weakness in the credit quality of the issuer or underlying assets. The Company has the ability and intent to hold these investments until maturity. The Company does not consider the investment in marketable securities to be other-than-temporarily impaired at December 31, 2021 and 2020.