v3.26.1
Note 5 - Fair Value Measurement
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

NOTE 5:

FAIR VALUE MEASUREMENT

 

FASB ASC No. 820, “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value. Fair value is an exit price, representing the amount that would be received for selling an asset or paid for the transfer of a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value:

 

Level I

Unadjusted quoted prices in active markets that are accessible on the measurement date for identical, unrestricted assets or liabilities;

Level II

Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level III

Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

 

The Company measures its marketable securities, investments in marketable equity securities and foreign currency derivative contracts at fair value. The carrying amount of cash, cash equivalents, short-term bank deposits, trade receivables, other accounts receivable, trade payables and other accounts payables approximate fair value due to the short-term maturity of these instruments. Investments in marketable equity securities are classified within Level I as the securities are traded in an active market. Marketable securities and foreign currency derivative contracts are classified within Level II as the valuation inputs are based on quoted prices and market observable data of similar instruments.

 

The table below sets forth the Company’s assets and liabilities measured at fair value by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

 

Description

  

March

31, 2026

(unaudited)

    

Level I

(unaudited)

    

Level II

(unaudited)

    

Level III

(unaudited)

  

Assets:

                                

Marketable securities:

                                

Corporate bonds

   $ 189,190     $ —     $ 189,190     $ —  

Investments in marketable equity securities

   $ 119     $ 119     $ —     $ —  
                                 

Liabilities:

                                

Foreign exchange contracts

   $ 25     $ —     $ 25     $ —  

 

Description

  

December

31, 2025

    

Level I

   

Level II

   

Level III

  

Assets:

                                

Marketable securities:

                                

Corporate bonds

   $ 179,302     $ —     $ 179,302     $ —  

Foreign exchange contracts

   $ 21     $ —     $ 21     $ —  

Investments in marketable equity securities

   $ 55     $ 55     $ —     $ —