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Fair Value Measurement of Assets and Liabilities
 3 Months Ended
Mar. 31, 2012
Fair Value Measurement of Assets and Liabilities [Abstract]  
Fair Value Measurement of Assets and Liabilities

6. Fair Value Measurement of Assets and Liabilities

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2012 and December 31, 2011:

 

 

                                 
Description   Balances as of
March 31,
2012		     Quoted Prices in
active markets for
identical Assets
(Level 1)		     Balances as of
December 31,
2011		     Quoted Prices in
active markets for
identical Assets
(Level 1)		  

Assets

                                

Cash and Cash Equivalents:

                                

Money Market Funds

   $ 24,953,117     $ 24,953,117     $ 20,836,617     $ 20,836,617  

Investments:

                                

Asset backed securities

     18,261,045       18,261,045       18,309,316       18,309,316  

Sovereign Debt Securities

     10,170,152       10,170,152       10,708,563       10,708,563  

Corporate Debt Securities

     20,335,233       20,335,233       17,824,331       17,824,331  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total financial Assets

   $ 73,719,547     $ 73,719,547     $ 67,678,827     $ 67,678,827  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

The Company’s financial assets are valued using market prices on active markets (level 1). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. As of March 31, 2012 and December 31, 2011, the Company did not have any assets obtained from readily-available pricing sources for comparable instruments (level 2) or without observable market values that would require a high level of judgment to determine fair value (level 3).

The unrealized net gains on short term and long term investments are reported as a component of accumulated other comprehensive income. The Company does not anticipate any significant realized losses associated with those investments in excess of the Company’s historical cost.

In addition, as of March 31, 2012 and December 31, 2011, the Company had $77,040,200 and $72,019,726 of short-term investments, which consisted of time deposits maintained as held to maturity investments. Those investments are accounted for at amortized cost which, as of March 31, 2012 and December 31, 2011, approximates their fair values.

As of March 31, 2012 and December 31, 2011, the carrying value of the Company’s cash and cash equivalents approximated their fair value which was held primarily in money markets funds and bank deposits. In addition, the carrying value of accounts receivables, credit card receivables, funds payable to customers, other receivables, other assets, accounts payables, social security payables, taxes payables, loans and provisions and other liabilities approximates their fair values because of its short term maturity.

For the three-month periods ended March 31, 2012 and 2011, the Company held no direct investments in auction rate securities, collateralized debt obligations, structured investment vehicles. As of March 31, 2012 and December 31, 2011, the Company does not have any non-financial assets or liabilities measured at fair value.

As of March 31, 2012 and December 31, 2011, the fair value of short and long-term investments classified as available for sale securities are as follows:

 

 

 

                                 
    March 31, 2012  
    Gross
Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses (1)		     Estimated
Fair Value		  

Short-term investments

                                

Sovereign Debt Securities

   $ 1,776,034     $ 16,721     $ (12,902 )    $ 1,779,853  

Corporate Debt Securities

     3,921,896       42,568       (62,360 )      3,902,104  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total Short-term investments

   $ 5,697,930     $ 59,289     $ (75,262 )    $ 5,681,957  
   

 

 

    

 

 

    

 

 

    

 

 

  

Long-term investments

                                

Sovereign Debt Securities

   $ 8,016,383     $ 418,169     $ (44,253 )    $ 8,390,299  

Corporate Debt Securities

     16,296,878       246,235       (109,984 )      16,433,129  

Asset Backed Securities (2)

     17,702,718       769,170       (210,843 )      18,261,045  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total Long-term investments

   $ 42,015,979     $ 1,433,574     $ (365,080 )    $ 43,084,473  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 47,713,909     $ 1,492,863     $ (440,342 )    $ 48,766,430  
   

 

 

    

 

 

    

 

 

    

 

 

  
   
    December 31, 2011  
    Gross
Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses (1)		     Estimated
Fair Value		  

Short-term investments

                                

Sovereign Debt Securities

   $ 1,554,448     $ 322     $ —       $ 1,554,770  

Corporate Debt Securities

     1,375,006       —         (20,882 )      1,354,124  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total Short-term investments

   $ 2,929,454     $ 322     $ (20,882 )    $ 2,908,894  
   

 

 

    

 

 

    

 

 

    

 

 

  

Long-term investments

                                

Sovereign Debt Securities

   $ 8,483,883     $ 669,910     $ —       $ 9,153,793  

Corporate Debt Securities

     16,386,974       187,946       (104,713 )      16,470,207  

Asset Backed Securities (2)

     17,647,012       715,749       (53,445 )      18,309,316  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total Long-term investments

   $ 42,517,869     $ 1,573,605     $ (158,158 )    $ 43,933,316  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 45,447,323     $ 1,573,927     $ (179,040 )    $ 46,842,210  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Unrealized losses from securities are primarily attributable to market price movements. Management does not believe any remaining unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence including the credit rating of the investments, as of March 31, 2012 and December 31, 2011.
(2) Asset backed securities have investment grade credit ratings. These investments are collateralized by real estated and they are guaranteed by the U.S. Federal Gonvernment.

As of March 31, 2012, the estimated fair values of short-term and long-term investments classified by its contractual maturities are as follows:

 

 

         

One year or less

   $ 5,681,957  

One year to two years

     2,184,022  

Two years to three years

     14,481,405  

Three years to four years

     10,572,742  

Four years to five years

     5,521,910  

More than five years

     10,324,394  
   

 

 

  

Total

   $ 48,766,430