Annual report pursuant to Section 13 and 15(d)

Fair Value Measurement - Marketable Securities

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Fair Value Measurement - Marketable Securities
 12 Months Ended
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]  
Fair Value Measurement - Marketable Securities

Note 4 - Fair Value Measurement - Marketable Securities

 

Following is a description of the valuation methodologies used for assets measured at fair value as of December 31, 2015 and 2014.

 

U.S. Agency Securities, Corporate and Municipal Securities and Certificates of Deposits: Valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing value on yields currently available on comparable securities of issuers with similar credit ratings.

 

    2015  
          Accrued     Unrealized     Unrealized     Fair  
    Cost     Income     Gains     Losses     Value  
Level 2:                                        
Money market funds   $ 750     $ -     $ -     $ -     $ 750  
Certificates of deposits     2,050,000       8,584       -       (135 )     2,058,449  
Corporate securities     1,528,308       4,934       -       (5,918 )     1,527,324  
Municipal securities     438,003       756       -       (178 )     438,581  
Total Level 2:     4,017,061       14,274       -       (6,231 )     4,025,104  
                                         
Total:   $ 4,017,061     $ 14,274     $ -     $ (6,231 )   $ 4,025,104  

 

    Cost     Accrued Income     2014
Unrealized Gains 		    Unrealized Losses     Fair Value  
Level 2:                                        
Money market funds   $ 1,795     $ -     $ -     $ -     $ 1,795  
US agency securities     297,699       360       -       (141 )     297,918  
Certificates of deposits     3,430,000       10,653       -       (11,236 )     3,429,417  
Corporate securities     1,528,308       5,037       -       (6,631 )     1,526,714  
Municipal securities     4,008,811       2,422       -       (2,116 )     4,009,117  
Total Level 2:     9,266,613       18,472       -       (20,124 )     9,264,961  
                                         
Total:   $ 9,266,613     $ 18,472     $ -     $ (20,124  )   $ 9,264,961  

 

Marketable securities include U.S. agency securities, corporate securities, and municipal securities, which are classified as available for sale. The securities are valued at fair market value. Maturities of the securities range from one to twenty years. Unrealized gains/(losses) relating to the available for sale investment securities were recorded in the consolidated statement of changes in stockholders’ equity as comprehensive income. These amounts were $13,893 and ($20,124) (net of effect of income tax expense of $-) for the years ended December 31, 2015 and 2014.

 

As of December 31, 2015, investments in U.S. agency securities, corporate securities and municipal securities classified as available for sale mature as follows:

 

Within           After  
1 Year     1 - 5 Years     10 Years  
                     
$ 294,622     $ 3,630,455     $ 100,027  

 

Proceeds from the sale of marketable securities in the year ended December 31, 2015 and 2014 were $5,310,491 and $3,284,494. Gross gain and gross loss as a result of the sales amounted to $1,594 and $8,105 for December 31, 2015 and $861 and $110 for December 31, 2014.