Fair Value Measurement of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2013

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2013 and December 31, 2012:


	Balances as of June 30,		Quoted Prices in active markets for identical Assets		Significant other observable inputs		Balances as of December 31,		Quoted Prices in active markets for identical Assets		Significant other observable inputs
Description	2013		(Level 1)		(Level 2)		2012		(Level 1)		(Level 2)
	(Unaudited)						(Audited)
Assets
Cash and Cash Equivalents:
Money Market Funds	$	27,712,009	$	27,712,009	$	—	$	23,033,357	$	23,033,357	$	—
Investments:
Asset backed securities		—		—		—		18,826,833		—		18,826,833
Sovereign Debt Securities		26,868,278		26,868,278		—		21,453,141		21,453,141		—
Corporate Debt Securities		42,143,785		42,143,785		—		51,991,294		51,991,294		—

Total Financial Assets	$	96,724,072	$	96,724,072	$	—	$	115,304,625	$	96,477,792	$	18,826,833

Fair Value of Financial Assets and Liabilities Measured at Amortized Cost

The following table summarizes the fair value level for those financial assets and liabilities of the Company measured at amortized cost as of June 30, 2013 and December 31, 2012:


	Balances as of June 30, 2013		Significant other observable inputs (Level 2)		Balances as of December 31, 2012		Significant other observable inputs (Level 2)
	(Unaudited)				(Audited)
Assets
Time Deposits	$	61,725,464		61,725,464	$	87,379,121		87,379,121
Accounts and Credit Cards receivable		82,942,389		82,942,389		55,653,528		55,653,528
Prepaid expenses and Other assets		20,874,816		20,874,816		19,601,417		19,601,417

Total Assets	$	165,542,669	$	165,542,669	$	162,634,066	$	162,634,066

Liabilities
Accounts and funds payable	$	145,838,048	$	145,838,048	$	125,449,275	$	125,449,275
Salaries and social security payable		15,571,049		15,571,049		14,994,186		14,994,186
Tax payable		15,371,128		15,371,128		19,210,568		19,210,568
Dividends payable		6,313,869		6,313,869		4,812,396		4,812,396
Other liabilities		15,300,420		15,300,420		2,981,212		2,981,212

Total Liabilities	$	198,394,514	$	198,394,514	$	167,447,637	$	167,447,637

Fair Value of Short and Long-Term Investments Classified as Available for Sale Securities

As of June 30, 2013 and December 31, 2012, the fair value of short and long-term investments classified as available for sale securities are as follows:


	June 30, 2013 (Unaudited)
	Cost		Gross Unrealized Gains		Gross Unrealized Losses (1)			Estimated Fair Value
Cash and cash equivalents
Money Market Funds	$	27,716,592	$	—	$	(4,583	)	$	27,712,009

Total Cash and cash equivalents	$	27,716,592	$	—	$	(4,583	)	$	27,712,009

Short-term investments
Sovereign Debt Securities	$	3,978,872	$	857	$	—		$	3,979,729
Corporate Debt Securities		5,604,611		—		(9,862	)		5,594,749

Total Short-term investments	$	9,583,483	$	857	$	(9,862	)	$	9,574,478

Long-term investments
Sovereign Debt Securities	$	22,908,219	$	27,937	$	(47,607	)	$	22,888,549
Corporate Debt Securities		36,759,140		8,196		(218,300	)		36,549,036

Total Long-term investments	$	59,667,359	$	36,133	$	(265,907	)	$	59,437,585

Total	$	96,967,434	$	36,990	$	(280,352	)	$	96,724,072


	December 31, 2012 (Audited)
	Cost		Gross Unrealized Gains		Gross Unrealized Losses (1)			Estimated Fair Value
Cash and cash equivalents
Money Market Funds	$	23,030,970	$	3,400	$	(1,013	)	$	23,033,357

Total Cash and cash equivalents	$	23,030,970	$	3,400	$	(1,013	)	$	23,033,357

Short-term investments
Corporate Debt Securities	$	6,314,939	$	1,032	$	(287	)	$	6,315,684

Total Short-term investments	$	6,314,939	$	1,032	$	(287	)	$	6,315,684

Long-term investments
Sovereign Debt Securities	$	21,153,227	$	299,914	$	—		$	21,453,141
Corporate Debt Securities		45,089,831		630,807		(45,028	)		45,675,610
Asset Backed Securities (2)		18,568,996		301,544		(43,707	)		18,826,833

Total Long-term investments	$	84,812,054	$	1,232,265	$	(88,735	)	$	85,955,584

Total	$	114,157,963	$	1,236,697	$	(90,035	)	$	115,304,625

(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 June 30, 2013 and December 31, 2012.

(2)	Asset backed securities have investment grade credit ratings.

Estimated Fair Values of Short-Term and Long-Term Investments

As of June 30, 2013, the estimated fair values of short-term and long-term investments classified by its contractual maturities were as follows:


One year or less	$	37,286,487
One year to two years		24,218,350
Two years to three years		18,575,315
Three years to four years		9,471,002
Four years to five years		5,435,462
More than five years		1,737,456

Total	$	96,724,072

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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