Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.20.2
Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 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 September 30, 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

$

$

$

2,572

$

2,572

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 nine months ended September 30, 2020 (in thousands):

Nine Months Ended
September 30, 2020

Balance at December 31, 2019

$

681

Change in fair value

 

1,891

Balance at September 30, 2020

$

2,572

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 September 30, 2020 and December 31, 2019:

    

September 30,

    

December 31,

 

2020

2019

 

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

$

0.43

$

0.12

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

33

%

33

%

Estimated time to liquidity of shares

1.25 year

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 September 30, 2020 and December 31, 2019, are as follows (in thousands):

September 30, 2020

December 31, 2019

    

Carrying Amount

    

Fair Value

    

Carrying Amount

    

Fair Value

Novartis note

$

16,220

$

16,217

$

15,903

$

15,713

SVB Loans

13,732

13,722

16,374

16,048

Total

$

29,952

$

29,939

$

32,277

$

31,761