Quarterly report pursuant to Section 13 or 15(d)

Derivative Contracts

v3.20.2
Derivative Contracts
 9 Months Ended
Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE CONTRACTS DERIVATIVE CONTRACTS
The following table summarizes the fair values and the presentation of our derivative assets (liabilities) in the Condensed Consolidated Balance Sheets:
(In thousands) Balance Sheet Component September 30,
2020		 December 31,
2019
Derivative financial instruments:
Common Stock options/warrants Investments, net $ 38  $ 120 
Forward contracts Unrealized gains on forward contracts are recorded in Other current assets and prepaid expenses. Unrealized (losses) on forward contracts are recorded in Accrued expenses. $ 171  $ 133 
We enter into foreign currency forward exchange contracts in an effort to mitigate the effects of exchange rate differences arising from inventory purchases on letters of credit. Under these forward contracts, for any rate above or below the fixed rate, we receive or pay the difference between the spot rate and the fixed rate for the given amount at the settlement date.
To qualify the derivative instrument as a hedge, we are required to meet strict hedge effectiveness and contemporaneous documentation requirements at the initiation of the hedge and assess the hedge effectiveness on an ongoing basis over the life of the hedge. At September 30, 2020 and December 31, 2019, our derivative financial instruments did not meet the documentation requirements to be designated as hedges. Accordingly, we recognize the changes in Fair value of derivative instruments, net in our Condensed Consolidated Statement of Operations. The following table summarizes the losses and gains recorded for the three and nine months ended September 30, 2020 and 2019:
  Three months ended September 30, Nine months ended September 30,
(In thousands) 2020 2019 2020 2019
Derivative gain (loss):
Common Stock options/warrants $ (13) $ (368) $ (82) $ (392)
Forward contracts (483) 347  194  398 
Total $ (496) $ (21) $ 112  $ 6