Company: PAMT
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001437749-25-007273
Chunk: 197

Company: PAMT CORP
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1A
Chunk 197
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 and borrowings.
    
   The Company follows the guidance for financial assets and liabilities measured on a recurring basis. The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date and also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
    
   The standard describes three levels of inputs that  may be used to measure fair value:
    
     Level 1:   Quoted market prices in active markets for identical assets or liabilities. 
    
  Level 2:   Inputs other than Level 1 inputs that are either directly or indirectly observable such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable; or other inputs not directly observable, but derived principally from, or corroborated by, observable market data. 
  Level 3:   Unobservable inputs that are supported by little or no market activity. 

   The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.
    
   At  December 31, 2024 and 2023, the following items are measured at fair value on a recurring basis:

       2024    2023  
   Total    Level 1    Level 2    Level 3    Total    Level 1    Level 2    Level 3  
 Marketable equity securities  $42,620  $42,620   -   -  $43,203  $43,203   -   - 

   During 2024 and 2023, there were no transfers of marketable securities between levels of fair value measurement.
    
   The Company’s investments in marketable equity securities are recorded at fair value based on quoted market prices. The carrying value of cash and cash equivalents, accounts receivable, trade accounts payable, and accrued liabilities approximate fair value due to their short maturities.
    
   The carrying amount for the line of credit approximates fair value because the line of credit interest rate is adjusted