| Fair Value Measurement - Marketable Securities |
Note 5 - Fair Value Measurement - Marketable
Securities
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Following is a description of the valuation methodologies used for assets measured at fair value as of December 31, 2016 and 2015. |
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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. |
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As of December 31, 2016 |
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Accrued |
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|
Unrealized |
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|
Unrealized |
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|
Fair |
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|
Cost |
|
|
Income |
|
|
Gains |
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|
Losses |
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|
Value |
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| Level 2: |
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|
|
|
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|
|
|
|
|
|
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|
|
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| Money market funds |
|
$ |
29,657 |
|
|
$ |
15 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
29,672 |
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| Municipal securities |
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|
20,314 |
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|
|
15 |
|
|
|
- |
|
|
|
- |
|
|
|
20,329 |
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| Total Level 2: |
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|
49,971 |
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|
30 |
|
|
|
- |
|
|
|
- |
|
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|
50,001 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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| Total: |
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$ |
49,971 |
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|
$ |
30 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
50,001 |
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As of December 31, 2015 |
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|
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Accrued |
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|
Unrealized |
|
|
Unrealized |
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Fair |
|
| |
|
Cost |
|
|
Income |
|
|
Gains |
|
|
Losses |
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|
Value |
|
| Level 2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| Money market funds |
|
$ |
750 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
750 |
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| Certificates of deposits |
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|
2,050,000 |
|
|
|
8,584 |
|
|
|
- |
|
|
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(135 |
) |
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2,058,449 |
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| Corporate Securities |
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1,528,308 |
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|
|
4,934 |
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|
|
- |
|
|
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(5,918 |
) |
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1,527,324 |
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| Municipal securities |
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|
438,003 |
|
|
|
756 |
|
|
|
- |
|
|
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(178 |
) |
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438,581 |
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| Total Level 2: |
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|
4,017,061 |
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|
|
14,274 |
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|
|
- |
|
|
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(6,231 |
) |
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4,025,104 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
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| Total: |
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$ |
4,017,061 |
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|
$ |
14,274 |
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|
$ |
- |
|
|
$ |
(6,231 |
) |
|
$ |
4,025,104 |
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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 are less than one year. Unrealized gains 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 $6,231 and $13,893 (net of effect of income tax expense of $-) for the years ended December 31, 2016 and 2015. |
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Proceeds from the sale of marketable securities in the year ended December 31, 2016 and 2015 were $4,003,034 and $5,310,491. Gross gains as a result of the sales amounted to $3,582 and $1,594 and gross losses amounted to $3,667 and $8,105 for the years ended December 31, 2016 and 2015, respectively. |
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