Company: AWRE
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0000950170-25-038714
Chunk: 106

Company: AWARE INC /MA/
Filing Date: 2025-03-13
Form: 10-K
Item: Item 8
Chunk 106
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:

          Amortized Cost

          Gross Unrealized Gains

          Gross Unrealized Losses

          Fair Value

          U.S. Treasury notes and bonds
           
          $
          15,332

          $
          176

          $
          (19
          )
           
          $
          15,489

          Corporate bonds

          5,386

          39

          (1
          )

          5,424

          $
          20,718

          $
          215

          $
          (20
          )
           
          $
          20,913

           Changes in note receivable consisted of the following (in thousands): 

           Balance as of December 31, 2022
           
          $
          2,601

          Accrued interest

          94

          Write-off of Note Receivable

          (2,695
          )

          Balance as of December 31, 2023

          -

          No Change

          -

          Balance as of December 31, 2024

          -

          The investment in the Note Receivable ("Note") with Omlis Limited ("Omlis"), a limited company incorporated and registered in England and Wales and the parent of MIRCAL Technologies Limited ("MIRACL"), was negotiated at an arm’s length basis and the total carrying value of the investment was $0 as of December 31 2024 and 2023.  The $2.7 million write off during the year ended December 31, 2023 was the result of the lack of recoverability of the Note due to liquidity concerns as of December 31, 2023.  In addition, in January 2024, Omlis and MIRACL petitioned to enter the United Kingdom administration process, which is still ongoing.  The deterioration of Omlis' liquidity, resulted in our unlikely recoverability of the Note's carrying value.   Cash and Cash Equivalents – Cash and cash equivalents, which consist primarily of money market funds and demand deposits, are stated at fair value. All highly liquid investments purchased with an original maturity of three months or less are considered cash equivalents. Our cash balances exceed the Federal Deposit Insurance Corporation limits. The Company does not believe it is exposed to significant credit risk related to cash and cash equivalents.Allowance for Credit Losses – The Company's accounts receivable are subject to concentrations of credit risk. We maintain an allowance for