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SEC Filings

10-Q
INCONTACT, INC. filed this Form 10-Q on 11/09/2016
Entire Document
 

 

As a result of incurring a net loss for the three and nine months ended September 30, 2016 and 2015, no potentially dilutive securities are included in the calculation of diluted earnings per share because such effect would be anti-dilutive. The following table summarizes potentially dilutive securities, using the above security classifications (in thousands):  

 

 

 

September 30,

 

 

 

2016

 

 

2015

 

Stock options

 

 

2,418

 

 

 

2,765

 

Restricted stock awards

 

 

1,727

 

 

 

1,317

 

Potential shares from Convertible Notes

 

 

8,082

 

 

 

8,082

 

Total potentially dilutive shares

 

 

12,226

 

 

 

12,164

 

 

 

NOTE 3. FAIR VALUE OF FINANCIAL INSTRUMENTS

The accounting guidance for fair value measurements defines fair value, establishes a market-based framework or hierarchy for measuring fair value and expands disclosures about fair value measurements. The guidance is applicable whenever assets and liabilities are measured and included in the Condensed Consolidated Financial Statements at fair value. The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs.  The fair value hierarchy prioritizes the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Inputs that reflect quoted prices for identical assets or liabilities in less active markets; quoted prices for similar assets or liabilities in active markets; benchmark yields, reported trades, broker/dealer quotes, inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3: Unobservable inputs that reflect our own assumptions incorporated in valuation techniques used to measure fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

Assets Measured at Fair Value on a Recurring Basis:

The following table summarizes our investments measured at fair value on a recurring basis using the above input categories. As of September 30, 2016 and December 31, 2015, we did not hold any Level 3 assets, and our Level 1 and Level 2 holdings were as follows (in thousands):  

 

 

 

September 30, 2016

 

 

December 31, 2015

 

 

 

Level 1

 

 

Level 2

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Total

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

28,382

 

 

$

-

 

 

$

28,382

 

 

$

4,071

 

 

$

-

 

 

$

4,071

 

Commercial paper

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

999

 

 

 

999

 

Total cash equivalents

 

 

28,382

 

 

 

-

 

 

 

28,382

 

 

 

4,071

 

 

 

999

 

 

 

5,070

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

-

 

 

 

17,852

 

 

 

17,852

 

 

 

-

 

 

 

27,846

 

 

 

27,846

 

Corporate debt securities

 

 

-

 

 

 

17,936

 

 

 

17,936

 

 

 

-

 

 

 

45,830

 

 

 

45,830

 

Municipal bonds

 

 

-

 

 

 

2,511

 

 

 

2,511

 

 

 

-

 

 

 

1,433

 

 

 

1,433

 

Total investments

 

 

-

 

 

 

38,299

 

 

 

38,299

 

 

 

-

 

 

 

75,109

 

 

 

75,109

 

Total assets measured at fair

   value

 

$

28,382

 

 

$

38,299

 

 

$

66,681

 

 

$

4,071

 

 

$

76,108

 

 

$

80,179

 

 

Fair Value Measurements

Money Market Funds – We value our money market funds using quoted active market prices for such funds.

Commercial paper, Corporate debt securities, and Municipal bonds – The fair value of these securities are estimated using observable market prices for identical securities that may be traded in less-active markets, if available. When observable market prices for

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