Quarterly report pursuant to Section 13 or 15(d)

Investments

v3.19.1
Investments
3 Months Ended
Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Investments

NOTE 4 - INVESTMENTS

 

The Company’s investments as of December 31, 2018 include debt securities, U.S. Treasury Notes, government and state agency bonds and corporate bonds, which are classified as either available for sale, held to maturity or trading, depending on management’s investment intentions relating to these securities. As of December 31, 2018, all of the Company’s investments are classified as available for sale. Available for sale securities are measured at fair value based on quoted market values of the securities, with the unrealized gains and (losses) reported as comprehensive income or (loss). For the three-month periods ended March 31, 2018 and 2019, the Company reported unrealized (losses) gains, net of realized amounts of $(93,000) and $9,000, respectively, on available for sale securities in total comprehensive loss. Realized gains and losses from the sale of available for sale securities are determined on a specific-identification basis. The Company has classified as short-term those securities that mature within one year. All other securities are classified as long-term.

 

The cost, gross unrealized gains (losses) and fair value of available for sale securities by major security types as of December 31, 2018 are as follows:

 

          Unrealized     Unrealized     Fair  
December 31, 2018   Cost     Gain     Loss     Value  
Investments - short term                                
U.S. Treasury Notes   $ 302,000     $ 1,000       -     $ 303,000  
Corporate bonds and commercial paper     91,000       -       -       91,000  
Total investments - short term     393,000       1,000               394,000  
                                 
Investments - long term                                
U.S. Treasury Notes     1,569,000       -       (2,000 )     1,567,000  
Government agency bonds     1,548,000       -       (23,000 )     1,525,000  
Corporate bonds     1,062,000       -       (23,000 )     1,039,000  
                                 
Total investments - long term     4,179,000       -       (48,000 )     4,131,000  
                                 
Total investments - available for sale   $ 4,572,000     $ 1,000     $ (48,000 )   $ 4,525,000  

 

The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those levels:

 

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.
   
Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
   
Level 3: Unobservable inputs that reflect the reporting entity’s estimates of market participants’ assumptions.

 

As of December 31, 2018, all of the Company’s investments are classified as Level 1 fair value measurements.