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SEC Filings

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

 

identical securities are not available, we value these securities using non-binding market price quotes from brokers which we review for reasonableness using observable market data; quoted prices for similar instruments; or pricing models, such as a discounted cash flows.

Other Financial Instruments

The carrying amounts of cash and cash equivalents (other than investments recorded on a fair value basis disclosed above), accounts and other receivables, and trade accounts payable approximate fair value because of the immediate or short-term maturities of these financial instruments.

The fair value of the Convertible Notes is considered to be a Level 2 measurement because it is based on a recent bid price quote for the Convertible Notes, reflecting activity in a less than active market. The carrying value and estimated fair value of our Convertible Notes are as follows (in thousands):

 

 

 

September 30, 2016

 

 

December 31, 2015

 

 

 

Carrying Value

 

 

Estimated Fair Value

 

 

Carrying Value

 

 

Estimated Fair Value

 

Convertible notes

 

$

85,215

 

 

$

138,792

 

 

$

81,985

 

 

$

108,330

 

 

 

NOTE 4. INVESTMENTS – AVAILABLE FOR SALE

Our investments generally consist of money market funds, commercial paper, corporate debt securities and municipal bonds.  All of our investments have original maturities (maturity at the purchase date) of less than 12 months.  Investments with original maturities of three months or less are classified as cash equivalents.

We classify our investments as available for sale at the time of purchase and we reevaluate such classification as of each balance sheet date.  These short-term investments are carried at fair value with unrealized gains or losses classified as a component of accumulated other comprehensive income (loss).  Amortization of premiums and accretion of discounts to maturity are computed under the effective interest method and is included in interest income.  Interest on securities is included in interest income when earned.  Realized gains and losses on the sale of investments are determined using the specific identification method and recorded in "Other income (expense)” in the Condensed Consolidated Statements of Operations and Comprehensive Loss.

Our investments as of September 30, 2016 and December 31, 2015 were as follows (in thousands):

 

 

September 30, 2016

 

 

Amortized Cost

 

 

Net Unrealized Gains (Losses)

 

 

Fair Value/Net Carrying Value

 

 

Cash and Cash Equivalents

 

 

Investments

 

Commercial paper

$

17,852

 

 

$

-

 

 

$

17,852

 

 

$

-

 

 

$

17,852

 

Corporate debt securities

 

17,935

 

 

 

1

 

 

 

17,936

 

 

 

-

 

 

 

17,936

 

Money market funds

 

28,382

 

 

 

-

 

 

 

28,382

 

 

 

28,382

 

 

 

-

 

Municipal bonds

 

2,513

 

 

 

(2

)

 

 

2,511

 

 

 

-

 

 

 

2,511

 

Total

$

66,682

 

 

$

(1

)

 

$

66,681

 

 

$

28,382

 

 

$

38,299

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

 

 

Amortized Cost

 

 

Net Unrealized Gains (Losses)

 

 

Fair Value/Net Carrying Value

 

 

Cash and Cash Equivalents

 

 

Investments

 

Commercial paper

$

28,845

 

 

$

-

 

 

$

28,845

 

 

$

999

 

 

$

27,846

 

Corporate debt securities

 

45,911

 

 

 

(81

)

 

 

45,830

 

 

 

-

 

 

 

45,830

 

Money market funds

 

4,071

 

 

 

-

 

 

 

4,071

 

 

 

4,071

 

 

 

-

 

Municipal bonds

 

1,433

 

 

 

-

 

 

 

1,433

 

 

 

-

 

 

 

1,433

 

Total

$

80,260

 

 

$

(81

)

 

$

80,179

 

 

$

5,070

 

 

$

75,109

 

 

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