Note 7 — Marketable securities – available-for-sale debt securities
As of September 30, 2023, the Company has the following investments in marketable securities (in thousands):
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Gross |
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Gross |
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Aggregate |
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Remaining |
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Amortized |
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unrealized |
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unrealized |
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estimated |
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contractual maturity |
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cost |
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gains |
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losses |
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fair value |
Cash equivalents: |
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U.S. Treasury securities |
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Less than 3 months |
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7,978 |
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1 |
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— |
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7,979 |
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$ |
7,978 |
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$ |
1 |
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$ |
— |
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$ |
7,979 |
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Available-for-sale debt securities: |
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Corporate debt securities |
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Less than 3 months |
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$ |
8,824 |
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$ |
— |
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$ |
(7) |
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$ |
8,817 |
U.S. Treasury securities |
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Less than 3 months |
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59,780 |
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94 |
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(3) |
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59,871 |
Agency bonds |
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Less than 3 months |
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2,984 |
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— |
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(3) |
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2,981 |
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$ |
71,588 |
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$ |
94 |
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$ |
(13) |
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$ |
71,669 |
The aggregate fair value (in thousands) and number of securities held by the Company (including those classified as cash equivalents) in an unrealized loss position as of September 30, 2023 and December 31, 2022 are as follows:
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September 30, 2023 |
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December 31, 2022 |
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Fair market value of investments in an unrealized loss position |
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Number of investments in an unrealized loss position |
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Unrealized losses |
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Fair market value of investments in an unrealized loss position |
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Number of investments in an unrealized loss position |
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Unrealized losses |
Marketable securities in a continuous loss position for 12 months or longer: |
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Corporate debt securities |
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$ |
2,377 |
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1 |
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$ |
(6) |
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$ |
74,481 |
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16 |
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$ |
(679) |
Agency bond |
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— |
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— |
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— |
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4,854 |
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1 |
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(154) |
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Marketable securities in a continuous loss position for less than 12 months: |
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Corporate debt securities |
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$ |
6,440 |
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2 |
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$ |
(1) |
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$ |
11,283 |
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2 |
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$ |
(97) |
U.S. Treasury securities |
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14,894 |
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5 |
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(3) |
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— |
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— |
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— |
Agency bond |
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2,981 |
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1 |
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(3) |
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— |
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— |
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— |
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$ |
26,692 |
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9 |
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$ |
(13) |
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$ |
90,618 |
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19 |
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$ |
(930) |
As of September 30, 2023, no allowance for expected credit losses has been recognized in relation to securities in an unrealized loss position. This is because the impairments are not severe, do not represent a significant proportion of the total fair market value of the investments and all securities have an investment-grade credit rating. Furthermore, the Company does not intend to sell the debt securities in an unrealized loss position, believes that it has the ability to hold the debt securities to maturity, and it is currently unlikely that the Company will be required to sell these securities before the recovery of the amortized cost.
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