2021-09-22 OMA Agenda - Board of Trustees

OBESITY MEDICINE ASSOCIATION Notes To Consolidated Financial Statements (Continued)

 Inputs that are derived principally from or corroborated by observable market data by correlation or other means If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Organizations believe the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. In general, investments are exposed to various risks, such as interest rate, credit and overall market volatility risk. Due to the level of risk associated with certain investments, it is reasonably possible that changes in the values of the investments will occur in the near term and that such changes could materially affect the investment balances and the amounts reported in the consolidated statement of financial position. As of December 31, 2020, investments consisted of the following and are valued at fair value as noted below: Quoted Prices In Active Significant Significant Year Ended Markets For Other Unobservable December 31, Identical Observable Inputs Description 2020 Assets (Level 1) Inputs (Level 2) (Level 3) Corporate bonds 716,221 $ — $ 716,221 $ $ — Money markets 261,457 261,457 — — Government agency bonds 1,192,056 — 1,192,056 — U.S. Treasury notes 257,787 — 257,787 — Equity securities 2,453,266 2,453,266 — — Total 4,880,787 $ 2,714,723 $ 2,166,064 $ $ — Fair Value Measurements At Reporting Date Using Level 3

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