Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v3.20.4
Fair Value Measurements (Tables)
12 Months Ended
Dec. 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 December 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

$

$

$

1,693

$

1,693

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 year ended December 31, 2020 (in thousands):

Balance at December 31, 2018

$

392

Change in fair value

289

Balance at December 31, 2019

$

681

Change in fair value

 

1,012

Balance at December 31, 2020

$

1,693

Schedule of Estimated Fair Value of Equity Securities Assumptions

    

December 31, 

 

December 31, 

December 31, 

2020

2019

 

Closing common stock price (1)

$

11.99

$

6.00

Tranche 1:

Discount for lack of marketability

 

12

%  

13

%

Estimated time to liquidity of shares

 

0.25 year

0.25 year

Tranche 2:

Discount for lack of marketability

14

%

33

%

Estimated time to liquidity of shares

0.67 year

1.5 years

(1) The prior period December 31, 2019 closing common stock price has been updated from $0.12 per share to $6.00 per share to reflect the Rezolute Reverse Stock Split that occurred in October 2020.

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 December 31, 2020 and 2019, are as follows (in thousands):

December 31, 2020

December 31, 2019

    

Carrying Amount

    

Fair Value

    

Carrying Amount

    

Fair Value

SVB Loans

$

11,759

$

11,747

$

16,374

16,048

Novartis note

9,093

9,055

15,903

$

15,713

Total

$

20,852

$

20,802

$

32,277

$

31,761