Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurement

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Fair Value Measurement
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurement

NOTE 3 — Fair Value Measurement

 

The fair value measurements standard establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under the standard are described below:

 

Level 1—Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.

 

Level 2—Inputs to the valuation methodology include:

 

  ● Quoted market prices for similar assets or liabilities in active markets;
     
  ● Quoted prices for identical or similar assets or liabilities in inactive markets;
     
  ● Inputs other than quoted prices that are observable for the asset or liability;
     
  ● Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.

 

Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

The assets or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

 

The following is a description of the valuation methodologies used for assets and liabilities measured at fair value. There have been no changes in the methodologies used at March 31, 2024, and December 31, 2023.

 

Money market funds are classified within level 1 of the fair value hierarchy because they are valued using quoted market prices.

 

 

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

 

The following tables sets forth by level, within the fair value hierarchy, the Company’s assets at fair value:

 

                 
    March 31, 2024  
    Level 1     Level 2     Level 3     Total  
Assets:                        
Money market funds *   $ 101     $ —     $ —     $ 101  

 

                 
    December 31, 2023  
    Level 1     Level 2     Level 3     Total  
Assets:                        
Money market funds *   $ 102     $ —     $ —     $ 102  

 

* Included in cash and cash equivalents on the condensed consolidated balance sheets.