Note 5: Marketable Securities

The Company classifies its marketable debt securities as available-for-sale (“AFS”) and reports them at fair value in accordance with ASC Topic 326, Measurement of Credit Losses on Financial Instruments.

During the three months ended September 30, 2025, the Company sold all of its investments in marketable debt securities. As a result, there were no marketable securities outstanding as of September 30, 2025, and the proceeds were used for general operating purposes.

The investments in marketable securities as of December 31, 2024 had an adjusted cost basis of $2.1 million and a market value of $2.0 million. The balances consisted of the following securities (in thousands):

The AFS securities held by the Company as of December 31, 2024 had been in an unrealized loss position for a period greater than 12 months. The Company reported the net unrealized losses in accumulated other comprehensive income (loss), a component of stockholders’ equity. As of September 30, 2025 and December 31, 2024, an allowance for credit loss was not recognized as the issuers of the securities had not established a cause for default, various rating agencies had reaffirmed each security's investment grade status and the Company did not have the intent, nor is it required to sell its securities prior to recovery.

Realized losses of $8,983 and $0.1 million were recognized in earnings during the three months ended September 30, 2025 and 2024, respectively. Realized losses of $36,674 and $0.5 million were recognized in earnings during the nine months ended September 30, 2025 and 2024, respectively, primarily due to selling securities prior to maturity to provide additional liquidity for general operating needs.