Quarterly report pursuant to Section 13 or 15(d)

Fair Value

Fair Value
6 Months Ended
Jun. 30, 2021
Fair Value Disclosures [Abstract]  
The following section describes the valuation methodologies used by the Company for estimating fair value for financial instruments not recorded at fair value, but fair value is included for disclosure purposes only, as required under disclosure guidance related to the fair value of financial instruments.
Cash and Cash Equivalents — The carrying value of cash, amounts due from banks, federal funds sold and securities purchased under resale agreements approximates fair value.
Financing Notes Receivable — The financing notes receivable are valued on a non-recurring basis. The financing notes receivable are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Financing notes with carrying values that are not expected to be recovered through future cash flows are written-down to their estimated net realizable value. Estimates of realizable value are determined based on unobservable inputs, including estimates of future cash flow generation and value of collateral underlying the notes.
Inventory - Inventory primarily consists of crude oil earned as in-kind PLA payments and is valued using an average costing method at the lower of cost and net realizable value.
Secured Credit Facilities — The fair value of the Company's long-term variable-rate and fixed-rate debt under its secured credit facilities approximates carrying value.
Unsecured Convertible Senior Notes — The fair value of the unsecured convertible senior notes is estimated using quoted market prices from either active (Level 1) or generally active (Level 2) markets.
Carrying and Fair Value Amounts
  Level within fair value hierarchy June 30, 2021 December 31, 2020
    Amount (1)
Fair Value
    Amount (1)
Fair Value
Financial Assets:
Cash and cash equivalents Level 1 $ 17,695,458  $ 17,695,458  $ 99,596,907  $ 99,596,907 
Financing notes receivable (Note 6) Level 3 1,149,245  1,149,245  1,209,736  1,209,736 
Inventory Level 1 1,625,464  1,625,464  87,940  87,940 
Financial Liabilities:
Crimson secured credit facility - Term Loan Level 2 $ 76,419,909  $ 76,419,909  $ —  $ — 
Crimson secured credit facility - Revolver(2)
Level 2 27,013,007  27,013,007  —  — 
5.875% Unsecured Convertible Senior Notes
Level 2 115,336,979  111,417,951  115,008,130  84,409,292 
(1) The carrying value of debt balances are presented net of unamortized original issuance discount and debt issuance costs.
(2) The carrying value of the Crimson Revolver is presented net of unamortized debt issuance costs classified as an asset in deferred costs.