Note 5: Marketable Securities

The Company classifies and accounts for its marketable debt securities as available-for-sale (“AFS”) and the securities are stated at fair value in accordance with ASC 326, Financial Instruments - Credit Losses.

During the three months ended March 31, 2026, the Company redeemed $3.0 million of its marketable securities upon maturity.

The investments in marketable securities as of March 31, 2026 had an adjusted cost basis of $1.0 million and a market value of $1.0 million. The balances consisted of the following securities (in thousands):

The investments in marketable securities as of December 31, 2025 had an adjusted cost basis of $4.0 million and a market value of $4.0 million. The balances consisted of the following securities (in thousands):

The Company holds two AFS securities, all of which were in an unrealized gain position and none had been in an unrealized loss position for a period longer than 12 months as of March 31, 2026. The Company reports the net unrealized gains and losses in accumulated other comprehensive income (loss), a component of stockholders’ equity. As of March 31, 2026 and December 31, 2025, 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.

During the three months ended March 31, 2026, the Company did not record any realized gains or losses related to its marketable securities. During the three months ended March 31, 2025, the Company recorded realized gain of $4,454 primarily due to selling securities prior to maturity to provide additional liquidity for general operating needs.

The contractual maturities of the Company’s marketable investments as of March 31, 2026 were as follows (in thousands):

The Company may sell certain of its marketable debt securities prior to their stated maturities for reasons including, but not limited to, managing liquidity, credit risk, duration and asset allocation.