Quarterly report pursuant to Section 13 or 15(d)

Cash Equivalents and Marketable Securities

v3.19.3
Cash Equivalents and Marketable Securities
9 Months Ended
Sep. 30, 2019
Cash Equivalents and Marketable Securities [Abstract]  
Cash Equivalents and Marketable Securities Cash Equivalents and Marketable Securities
Cash equivalents and marketable securities at September 30, 2019 and at December 31, 2018 consisted of the following (in thousands):
 
September 30, 2019
 
Adjusted Cost
 
Gross Unrealized
Gains
(3)
 
Gross Unrealized
Losses
(3)
 
Estimated
Fair Value
Money market funds (1)
$
73,450

 
$

 
$

 
$
73,450


 
December 31, 2018
 
Adjusted Cost
 
Gross Unrealized
Gains
(3)
 
Gross Unrealized
Losses
(3)
 
Estimated
Fair Value
Money market funds (1)
$
31,225

 
$

 
$

 
$
31,225

Common shares of CO2 Solutions (2)
563

 
25

 

 
588

Total
$
31,788

 
$
25

 
$

 
$
31,813


    
(1) Money market funds are classified in cash and cash equivalents on our unaudited condensed consolidated balance sheets.
(2) Common shares of COSolutions are classified in equity securities on our unaudited condensed consolidated balance sheets.
(3) As a result of adopting ASU 2016-01, "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities", in 2018 and thereafter gross unrealized gains and gross unrealized losses related to our investment in CO2 Solutions were recognized in other expense, in our unaudited condensed consolidated statements of operations.
As of September 30, 2019, the total cash and cash equivalents balance of $92.1 million was comprised of money market funds of $73.5 million and cash of $18.6 million held with major financial institutions worldwide. As of December 31, 2018, the total cash and cash equivalents balance of $53.0 million was comprised of money market funds of $31.2 million and cash of $21.8 million held with major financial institutions worldwide.
In December 2009, we purchased 10,000,000 common shares of COSolutions, a company based in Quebec, Canada, whose shares were publicly traded in Canada on the TSX Venture Exchange until September 17, 2019 and are currently listed on NEX board, which is a separate board of TSX Venture Exchange. Our purchase represented approximately 16.6% of CO2 Solutions’ total common shares outstanding at the time of investment and was made in a private placement subject to a four-month statutory resale restriction. This restriction expired on April 15, 2010. Our investment in CO2 Solutions is recorded at its fair value. See Note 7, “Fair Value Measurements.” Through September 30, 2019, we concluded that we did not have the ability to exercise significant influence over CO2 Solutions’ operating and financial policies.
In the quarter ended September 30, 2019, we sold 1.3 million common shares of our investment in CO2 Solutions and received proceeds of $0.1 million. At September 30, 2019, we reviewed our investment in the common shares of CO2 Solutions. Concurrent with CO2 Solutions' announcement to file under the Bankruptcy and Insolvency Act (Canada) and a suspension in trading of its equity securities, there was no observable market pricing available at September 30, 2019. We assessed that the fair value of the investment and concluded to write down the investment to zero. Previously, we had assessed the fair value of the investment using readily quantifiable market data. We recognized a $0.4 million and a $0.5 million loss, respectively in the three and nine months ended September 30, 2019. The loss was included in other expenses, net in the unaudited condensed consolidated statement of operations.
We recognized a loss of $25 thousand and $20 thousand, respectively, in the three and nine months ended September 30, 2018.The loss was included in other expenses, net in the unaudited condensed consolidated statement of operations. On January 1, 2018, we adopted ASU 2016-01. Upon adoption, we reclassified the $0.5 million net unrealized loss on our investment from accumulated other comprehensive loss to our opening accumulated deficit.