NOTE 4. FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the carrying value and estimated fair value of the Company’s financial instruments not carried at fair value on the consolidated balance sheets at September 30, 2021 and December 31, 2020 (in thousands): | | | | | | | | | | | | | | | September 30, 2021 | | December 31, 2020 | | | Carrying Value | | Estimated Fair Value | | Carrying Value | | Estimated Fair Value | Cash and Cash Equivalents - Level 1 | | $ | 6,706 | | $ | 6,706 | | $ | 1,894 | | $ | 1,894 | Restricted Cash - Level 1 | | $ | 600 | | $ | 600 | | $ | — | | $ | — | Long-Term Debt - Level 2 | | $ | 190,195 | | $ | 195,283 | | $ | 106,809 | | $ | 106,809 |
The estimated fair values are not necessarily indicative of the amount the Company could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts. The following tables present the fair value of assets (liabilities) measured on a recurring basis by Level as of September 30, 2021 and December 31, 2020 (in thousands): | | | | | | | | | | | | | | | | | | Fair Value at Reporting Date Using | | | Fair Value | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | September 30, 2021 | | | | | | | | | | | | | 2026 Term Loan Interest Rate Swap (1) | | $ | 197 | | $ | — | | $ | 197 | | $ | — | 2027 Term Loan Interest Rate Swap (2) | | $ | 131 | | $ | — | | $ | 131 | | $ | — | December 31, 2020 | | | | | | | | | | | | | Credit Facility Interest Rate Swap (3) | | $ | (481) | | $ | — | | $ | (481) | | $ | — | 2026 Term Loan Interest Rate Swap (1) | | $ | — | | $ | — | | $ | — | | $ | — | 2027 Term Loan Interest Rate Swap (2) | | $ | — | | $ | — | | $ | — | | $ | — |
| (1) | Effective May 21, 2021, the Company utilized interest rate swaps to fix LIBOR and achieve a weighted average fixed interest rate of 0.81% plus the applicable spread on the $60.0 million 2026 Term Loan (hereinafter defined) balance. |
| (2) | Effective September 30, 2021, the Company utilized interest rate swaps, inclusive of its redesignation of the existing $50.0 million interest rate swap entered into as of April 30, 2020, to fix LIBOR and achieve a weighted average fixed interest rate of 0.53% plus the applicable spread on the $80.0 million 2027 Term Loan (hereinafter defined) balance. On September 30, 2021, the Company entered into an additional interest rate swap to extend the fixed interest rate through maturity on January 31, 2027. |
| (3) | Effective April 30, 2020, the Company utilized an interest rate swap to fix LIBOR and achieve a fixed interest rate of 0.48% plus the applicable spread on $50.0 million of the outstanding balance on the Credit Facility (hereinafter defined). |
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