v3.25.2
Note 4 - Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

4. Fair Value of Financial Instruments

 

The Company’s financial instruments consist primarily of cash, cash equivalents, marketable securities, accounts payable, and accrued liabilities. The Company’s cash, cash equivalents, accounts payable and accrued liabilities approximate fair value due to their relatively short maturities.

 

The following table presents the Company’s assets that are measured at fair value on a recurring basis:

 

   

June 30, 2025

  
   

(Level 1)

    

(Level 2)

    

(Level 3)

  
                         

Assets

                        

Cash equivalents (money market accounts)

   $ 6,859,363     $ —     $ —  

Marketable securities:

                        

Commercial paper

     —       17,741,598       —  

U.S. treasury bonds

     —       3,995,520       —  

U.S. government agency bonds

     —       1,981,780       —  

Corporate debt securities

     —       1,491,555       —  

Total assets measured at fair value

   $ 6,859,363     $ 25,210,453     $ —  

 

   

December 31, 2024

  
   

(Level 1)

    

(Level 2)

    

(Level 3)

  
                         

Assets

                        

Cash equivalents (money market accounts)

   $ 7,559,336     $ —     $ —  

Marketable securities:

                        

Commercial paper

     —       18,032,943       —  

U.S. treasury bonds

     —       7,951,060       —  

U.S. government agency bonds

     —       3,938,520       —  

Total assets measured at fair value

   $ 7,559,336     $ 29,922,523     $ —  

 

The fair values of the Company’s Level 2 marketable securities are estimated primarily based on benchmark yields, reported trades, market-based quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications, which represent a market approach. In general, a market approach is utilized if there is readily available and relevant market activity for an individual security. This valuation technique may change from period to period, based on the relevance and availability of market data.

 

The following is a summary of the Company's marketable securities which provides a reconciliation of amortized cost basis to fair value including cumulative unrealized gains and losses as of June 30, 2025 and December 31, 2024:

 

   

June 30, 2025

  
   

Amortized Cost

    

Unrealized

gains

    

Unrealized

losses

    

Fair Value

  

Commercial paper

   $ 17,745,445     $ —     $ (3,847 )   $ 17,741,598  

U.S. treasury bonds

     3,993,661       1,859       —       3,995,520  

U.S. government agency bonds

     1,979,313       2,467       —       1,981,780  

Corporate debt securities

     1,492,817       —       (1,262 )     1,491,555  

Total

   $ 25,211,236     $ 4,326     $ (5,109 )   $ 25,210,453  

 

   

December 31, 2024

  
   

Amortized Cost

    

Unrealized

gains

    

Unrealized

losses

    

Fair Value

  

Commercial paper

   $ 18,019,334     $ 16,393     $ (2,784 )   $ 18,032,943  

U.S. treasury bonds

     7,920,620       30,440       —       7,951,060  

U.S. government agency bonds

     3,926,372       12,148       —       3,938,520  

Total

   $ 29,866,326     $ 58,981     $ (2,784 )   $ 29,922,523  

 

There were no transfers among Level 1, Level 2 or Level 3 categories in the three and six months ended June 30, 2025 or the year ended December 31, 2024.