Company: AWRE
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0000950170-25-038714
Chunk: 105

Company: AWARE INC /MA/
Filing Date: 2025-03-13
Form: 10-K
Item: Item 8
Chunk 105
---
 Estimates – The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period.  Estimates used in these financial statements include but are not limited to, revenue recognition, goodwill and long-lived asset impairment, stock based compensation, income taxes, and allowance for credit losses.Fair Value Measurements - The Financial Accounting Standards Board (“FASB”) Codification defines fair value and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to the unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under the FASB Codification are: i) Level 1 – valuations that are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date; ii) Level 2 – valuations that are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly; and iii) Level 3 – valuations that require inputs that are both significant to the fair value measurement and unobservable.Cash and cash equivalents, which primarily include money market mutual funds, were $13.0 million and $10.0 million at December 31, 2024 and 2023, respectively.  Marketable securities, which primarily include U.S. 

32

Treasuries and corporate bonds, were $14.8 million and $20.9 million as of December 31, 2024 and 2023, respectively.    As of December 31, 2024, our assets that are measured at fair value on a recurring basis include the following (in thousands): 

          Fair Value Measurement atDecember 31, 2024 Using:

          Quoted Pricesin ActiveMarkets forIdenticalAssets

          SignificantOtherObservableInputs

          SignificantUnobservableInputs

          Total

          (Level 1)

          (Level 2)

          (Level 3)

          Assets:

             Money market funds (included in cash   and cash equivalents)
           
          $
          10,671

          $
          -

          $