Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.20.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2020
Fair Value Measurements  
Schedule of Financial Assets and Liabilities Carried at Fair Value on Recurring Basis

The following tables set forth the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at March 31, 2020 Using

 

 

Quoted Prices in

 

Significant Other

 

Significant

 

 

 

 

 

Active Markets for

 

Observable

 

Unobservable

 

 

 

 

 

Identical Assets

 

Inputs

 

Inputs

 

 

 

 

    

(Level 1)

    

(Level 2)

    

(Level 3)

    

Total

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

$

 —

 

$

 —

 

$

408

 

$

408

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

 —

 

$

 —

 

$

75

 

$

75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2019 Using

 

 

Quoted Prices in

 

Significant Other

 

Significant

 

 

 

 

 

Active Markets for

 

Observable

 

Unobservable

 

 

 

 

 

Identical Assets

 

Inputs

 

Inputs

 

 

 

 

    

(Level 1)

    

(Level 2)

    

(Level 3)

    

Total

Assets:

 

 

  

 

 

  

 

 

  

 

 

  

Equity securities

 

$

 

 

$

 

 

$

681

 

$

681

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

 —

 

$

 —

 

$

75

 

$

75

 

Summary of Changes in Estimated Fair Value of Level 3 Financial Assets

The following table provides a summary of changes in the estimated fair value of the Company’s Level 3 financial assets for the three months ended March 31, 2020 (in thousands):

 

 

 

 

 

Balance at December 31, 2019

    

$

681

Change in fair value

 

 

(273)

Balance at March 31, 2020

 

$

408

 

Schedule of Estimated Fair Value of Equity Securities Assumptions

The estimated fair value of the equity securities was calculated based on the following assumptions as of March 31, 2020 and December 31, 2019:

 

 

 

 

 

 

 

 

 

 

    

 

March 31,

    

 

December 31,

 

 

 

 

2020

 

 

2019

 

Closing common stock price on the Over-the-counter (OTC) exchange

 

$

0.07

 

$

0.12

 

 

 

 

 

 

 

 

 

Tranche 1:

 

 

 

 

 

 

 

Discount for lack of marketability

 

 

14

%  

 

13

%

Estimated time to liquidity of shares

 

 

0.25 year

 

 

0.25 year

 

 

 

 

 

 

 

 

 

Tranche 2:

 

 

 

 

 

 

 

Discount for lack of marketability

 

 

35

%

 

33

%

Estimated time to liquidity of shares

 

 

1.5 years

 

 

1.5 years

 

 

Outstanding Long Term Debt Carrying Amount and Estimated Fair Value

The carrying amount and the estimated fair value of the Company’s outstanding long-term debt at March 31, 2020 and December 31, 2019, are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2020

 

December 31, 2019

 

    

Carrying Amount

    

Fair Value

    

Carrying Amount

    

Fair Value

SVB Loans

 

$

15,628

 

$

15,303

 

$

16,374

 

$

16,048

Novartis note

 

 

15,903

 

 

15,536

 

 

15,903

 

 

15,713

Total

 

$

31,531

 

$

30,839

 

$

32,277

 

$

31,761