| Fair Value of Financial Instruments |
Note
3 – Fair Value of Financial Instruments
The
estimated fair values of financial instruments outstanding were (in thousands):
Schedule of Estimated Fair Value of Financial Instrument
| |
|
September
30, 2022 (Unaudited) |
|
| |
|
|
|
|
Unrealized |
|
|
Unrealized |
|
|
Fair |
|
| |
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Value |
|
| Short-term
investments |
|
$ |
18,372 |
|
|
$ |
— |
|
|
$ |
(53 |
) |
|
$ |
18,319 |
|
| Total |
|
$ |
18,372 |
|
|
$ |
— |
|
|
$ |
(53 |
) |
|
$ |
18,319 |
|
| |
|
December
31, 2021 |
|
| |
|
|
|
|
Unrealized |
|
|
Unrealized |
|
|
Fair |
|
| |
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Value |
|
| Short-term
investments |
|
$ |
23,040 |
|
|
$ |
— |
|
|
$ |
(29 |
) |
|
$ |
23,011 |
|
| Total |
|
$ |
23,040 |
|
|
$ |
— |
|
|
$ |
(29 |
) |
|
$ |
23,011 |
|
The
following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) (in thousands):
Schedule of Fair Value Hierarchy Financial Assets
| |
|
Fair
Value |
|
|
Level
1 |
|
|
Level
2 |
|
|
Level
3 |
|
| |
|
September
30, 2022 (Unaudited) |
|
| |
|
Fair
Value |
|
|
Level
1 |
|
|
Level
2 |
|
|
Level
3 |
|
| Money
market funds |
|
$ |
2,319 |
|
|
$ |
2,319 |
|
|
$ |
— |
|
|
$ |
— |
|
| Corporate
notes and commercial paper |
|
|
18,319 |
|
|
|
18,319 |
|
|
|
— |
|
|
|
— |
|
| Total
financial assets |
|
$ |
20,638 |
|
|
$ |
20,638
|
|
|
$ |
—
|
|
|
$ |
— |
|
| |
|
Fair
Value |
|
|
Level
1 |
|
|
Level
2 |
|
|
Level
3 |
|
| |
|
December
31, 2021 |
|
| |
|
Fair
Value |
|
|
Level
1 |
|
|
Level
2 |
|
|
Level
3 |
|
| Money
market funds |
|
$ |
5,484 |
|
|
$ |
5,484 |
|
|
$ |
— |
|
|
$ |
— |
|
| Corporate
notes and commercial paper |
|
|
23,011 |
|
|
|
23,011 |
|
|
|
— |
|
|
|
— |
|
| Total
financial assets |
|
$ |
28,495 |
|
|
$ |
28,495 |
|
|
$ |
— |
|
|
$ |
— |
|
As
of September 30, 2022, the fair value of the derivative liability was $57,000. The details of derivative liability transactions for the
nine months ended September 30, 2022 and 2021, are as follows:
Schedule of Derivative Liability Transactions
| |
|
September
30, 2022 |
|
|
September
30, 2021 |
|
|
September
30, 2022 |
|
|
September
30, 2021 |
|
| |
|
Three
Months Ending |
|
|
Nine
Months Ending |
|
| |
|
September
30, 2022 |
|
|
September
30, 2021 |
|
|
September
30, 2022 |
|
|
September
30, 2021 |
|
| |
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
| Beginning
balance |
|
$ |
115,000 |
|
|
$ |
842,000 |
|
|
$ |
138,000 |
|
|
$ |
383,000 |
|
| Issuance of warrants |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Change
in fair value |
|
$ |
(58,000 |
) |
|
$ |
(502,000 |
) |
|
$ |
(81,000 |
) |
|
$ |
(43,000 |
) |
| Extinguishment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Ending balance |
|
$ |
57,000 |
|
|
$ |
340,000 |
|
|
$ |
57,000 |
|
|
$ |
340,000 |
|
|