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 six months ended June 30, 2026, the Company redeemed marketable securities for proceeds of $4.0 million, and purchased an additional $32.8 million of U.S. Treasury securities, classified as available-for-sale. The increase from December 31, 2025 was primarily funded by proceeds received in the second quarter of 2026 from settlements reached with several defendants in the Section 16(b) Litigation.

The investments in marketable securities as of June 30, 2026 had an adjusted cost basis of $32.8 million and a market value of $32.8 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 seven AFS securities, four 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 June 30, 2026. The Company reports the net unrealized gains and losses in accumulated other comprehensive income (loss), a component of stockholders’ equity. As of June 30, 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 six months ended June 30, 2026, the Company did not record any realized gains or losses related to its marketable securities. During the six months ended June 30, 2025, the Company recorded realized losses related to its marketable securities of $0.04 million 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 June 30, 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.