Quarterly report pursuant to Section 13 or 15(d)

FINANCIAL INSTRUMENTS AND INVESTMENTS

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FINANCIAL INSTRUMENTS AND INVESTMENTS
9 Months Ended
Sep. 30, 2017
Fair Value Disclosures [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. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. 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.

The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term nature of these instruments. Investments are presented at fair value as of the balance sheet date and accumulated gains or losses on those investments are reported in other comprehensive income. 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.

NOTE 5 - FINANCIAL INSTRUMENTS AND INVESTMENTS (CONTINUED)

The following tables show the adjusted cost, unrealized losses and fair value of the Company's money market funds and investments held as of September 30, 2017 and December 31, 2016:



September 30, 2017


Adjusted Cost

Gross Unrealized Losses

Fair Value

Cash and Cash Equivalents

Short Term Investments

Long Term Investments
Level 1












Money Market Funds

$
336,372


$


$
336,372


$
336,372


$


$

Mutual Funds

1,626,236


(35,246
)

1,590,990






1,590,990

Subtotal

1,962,608


(35,246
)

1,927,362


336,372




1,590,990




















Level 2


















Certificates of Deposit

$
3,010,000


$


$
3,010,000


$


$
3,010,000


$

Corporate Bonds

2,384,269


(18,896
)

2,365,373




454,252


1,911,121

Municipal Bonds

4,705,311


(8,503
)

4,696,808




400,071


4,296,737

Subtotal

10,099,580


(27,399
)

10,072,181




3,864,323


6,207,858




















Total

$
12,062,188


$
(62,645
)

$
11,999,543


$
336,372


$
3,864,323


$
7,798,848




December 31, 2016


Adjusted Cost

Gross Unrealized Losses

Fair Value

Cash and Cash Equivalents

Short Term Investments

Long Term Investments
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

$
2,250,000


$


$
2,250,000


$


$
2,250,000


$

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

9,426,205


(88,713
)

9,337,492




5,215,536


4,121,956




















Total

$
11,953,585


$
(179,208
)

$
11,774,377


$
1,053,844


$
5,215,536


$
5,504,997