Annual report pursuant to Section 13 and 15(d)

FINANCIAL INSTRUMENTS AND INVESTMENTS

v3.8.0.1
FINANCIAL INSTRUMENTS AND INVESTMENTS
12 Months Ended
Dec. 31, 2017
Financial Instruments, Owned, at Fair Value [Abstract]  
FINANCIAL INSTRUMENTS AND INVESTMENTS
FINANCIAL INSTRUMENTS AND INVESTMENTS

The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements do not include transaction costs.

A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is divided into the following three categories:

Level 1:
Quoted market prices in active markets for identical assets or liabilities.
 
 
Level 2:
Observable market-based inputs or inputs that are corroborated by market data.
 
 
Level 3:
Unobservable inputs that are not corroborated by market data.

Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision.  Changes in assumptions can significantly affect estimated fair value. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from financial instruments and any declines in the value of investments are temporary in nature.

The following tables show the adjusted cost, unrealized gains (losses) and fair value of the Company's cash and cash equivalents and investments held as of December 31, 2017 and 2016:
 
 
December 31, 2017
 
 
Adjusted
Cost
 
Pre-Tax
Unrealized Losses
 
Fair Value
 
Cash
and Cash
Equivalents
 
Short Term
 
Long Term
Level 1
 
 
 
 
 
 
 
 
 
 
 
 
Money Market Funds
 
$
888,942

 
$

 
$
888,942

 
$
888,942

 
$

 
$

Mutual Funds
 
1,626,236

 
(29,679
)
 
1,596,557

 

 

 
1,596,557

Subtotal
 
2,515,178

 
(29,679
)
 
2,485,499

 
888,942

 

 
1,596,557

 
 
 
 
 
 
 
 
 
 
 
 
 
Level 2
 
 
 
 
 
 
 
 
 
 
 
 
Certificates of Deposit
 
$
4,009,810

 
$

 
$
4,009,810

 
$

 
$
4,009,810

 
$

Corporate Bonds
 
2,228,855

 
(30,081
)
 
2,198,774

 

 
300,817

 
1,897,957

Municipal Bonds
 
5,084,573

 
(61,905
)
 
5,022,668

 

 

 
5,022,668

Subtotal
 
11,323,238

 
(91,986
)
 
11,231,252

 

 
4,310,627

 
6,920,625

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
13,838,416

 
$
(121,665
)
 
$
13,716,751

 
$
888,942

 
$
4,310,627

 
$
8,517,182



 
 
December 31, 2016
 
 
Adjusted Cost
 
Pre-Tax
Unrealized Losses
 
Fair Value
 
Cash
and Cash
 Equivalents
 
Short Term
 
Long Term
Level 1
 
 
 
 
 
 
 
 
 
 
 
 
Money Market Funds
 
$
1,053,844

 
$

 
$
1,053,844

 
$
1,053,844

 
$

 
$

Mutual Funds
 
1,473,536

 
(90,495
)
 
1,383,041

 

 

 
1,383,041

Subtotal
 
2,527,380

 
(90,495
)
 
2,436,885

 
1,053,844

 

 
1,383,041

 
 
 
 
 
 
 
 
 
 
 
 
 
Level 2
 
 
 
 
 
 
 
 
 
 
 
 
Certificates of Deposit
 
$
3,886,415

 
$

 
$
3,886,415

 
$

 
$
2,993,825

 
$
892,590

Corporate Bonds
 
2,246,956

 
(29,419
)
 
2,217,537

 

 
400,053

 
1,817,484

Municipal Bonds
 
4,929,249

 
(59,294
)
 
4,869,955

 

 
2,565,483

 
2,304,472

Subtotal
 
11,062,620

 
(88,713
)
 
10,973,907

 

 
5,959,361

 
5,014,546

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
13,590,000

 
$
(179,208
)
 
$
13,410,792

 
$
1,053,844

 
$
5,959,361

 
$
6,397,587



Pre-tax unrealized gains (losses) on investments incurred during the periods are presented below:
 
 
For the Year Ended December 31, 2017
 
For the Nine-Month Transition Period Ended December 31, 2016
Unrealized Holding Gains (Losses)
 
57,543
 
(179,208)

 
The maturities for bonds held by the Company as of December 31, 2017 are presented in the table below:
Maturity
Fair Value
Less Than One Year
302,189

1-2 years
1,685,858

2-5 years
4,983,823

5-10 years
250,944

Over 10 years

 
7,222,814