Quarterly report pursuant to Section 13 or 15(d)

Investments

v3.7.0.1
Investments
6 Months Ended
Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Investments

NOTE 4 - INVESTMENTS

 

The Company’s investments 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, 2016 and June 30, 2017, 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 gain and (losses) reported as comprehensive income or (loss). For the three- and six-month periods ended June 30, 2016, the Company reported unrealized loss gain of $(11,000) and $4,000, respectively, and for the three- and six-month periods ended June 30, 2017, the Company reported unrealized (loss) gain of $-0- and $4,000, 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 following table summarizes the estimated fair value of investment in debt securities designated as available for sale classified by the contractual maturity date of the security as of June 30, 2017:

 

    Fair Value  
       
Due within one year   $ 20,000  
Due one year through three years     1,384,000  
Due after three years     155,000  
         
    $ 1,559,000  

  

The cost, gross unrealized gains (losses) and fair value of available for sale securities by major security types as of December 31, 2016 and June 30, 2017 are as follows:

 

          Unrealized     Unrealized     Fair  
June 30, 2017 (Unaudited)   Cost     Gain     Loss     Value  
Investments - short term                                
Available for sale                                
Corporate bonds and commercial paper   $ 20,000     $ -       -     $ 20,000  
                                 
Total investments - short term     20,000       -       -       20,000  
                                 
Investments - long term                                
Available for sale                                
U.S. Treasury Notes     1,064,000       -       (4,000 )     1,060,000  
Government agency bonds     100,000       -       (1,000 )     99,000  
Corporate bonds and commercial paper     382,000       -       (2,000 )     380,000  
                                 
Total investments - long term     1,546,000       -       (7,000 )     1,539,000  
                                 
Total investments   $ 1,566,000     $ -     $ (7,000 )   $ 1,559,000  

 

          Unrealized     Unrealized     Fair  
December 31, 2016   Cost     Gain     Loss     Value  
Investments - short term                                
Available for sale                                
U.S. Treasury Notes   $ 40,000       -       -     $ 40,000  
Government agency bonds     50,000       -       -       50,000  
Corporate bonds and commercial paper     25,000       -       -       25,000  
Total investments - short term     115,000       -       -       115,000  
                                 
Investments - long term                                
Available for sale                                
U.S. Treasury Notes     1,027,000       -       (7,000 )     1,020,000  
Government agency bonds     100,000       -       (1,000 )     99,000  
Corporate bonds and commercial paper     383,000       -       (3,000 )     380,000  
                                 
Total investments - long term     1,510,000       -       (11,000 )     1,499,000  
                                 
Total investments   $ 1,625,000     $ -     $ (11,000 )   $ 1,614,000  

 

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, 2016 and June 30, 2017, all of the Company’s investments are classified as Level 1 fair value measurements.