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INVESTMENT SECURITIES HELD TO MATURITY
 6 Months Ended
Jun. 30, 2025
INVESTMENT SECURITIES HELD TO MATURITY  
INVESTMENT SECURITIES HELD TO MATURITY

NOTE 6 – INVESTMENT SECURITIES HELD TO MATURITY

 

In April 2025, the Company purchased $9,991,259 of U.S. Treasury Strips with maturities ranging from approximately 12 to 54 months. These U.S. Treasury Strips are scheduled to mature approximately equally about every six months beginning in May 2026 and will generate interest yields of approximately 4%.

 

The Company has classified these securities as held-to-maturity because it has the intent and ability to hold them until their contractual maturity date. As a result, these securities are carried at amortized cost, which represents the original investment amount adjusted for the amortization of discounts using the effective interest method over the period from acquisition to maturity.

 

The following is a summary of the Company’s investment securities held to maturity as of June 30, 2025:

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Estimated

Fair

Value

 

Investment securities held to maturity - current:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Strips

 

$1,258,665

 

 

$-

 

 

$(117)

 

$1,258,548

 

Investment securities held to maturity - noncurrent:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Strips

 

 

8,828,584

 

 

 

37,152

 

 

 

-

 

 

 

8,865,736

 

Total investment securities held-to-maturity

 

$10,087,249

 

 

$37,152

 

 

$(117)

 

$10,124,284

 

 

The Company recognized interest income accretion on its U.S. Treasury Strips of $95,990 during both the three and six months ended June 30, 2025. There were no investment securities outstanding at December 31, 2024 or held during the six months ended June 30, 2024.

 

Consistent with the Company’s classification of its U.S. Treasury Strips as held to maturity, those securities scheduled to mature in the next twelve months after the reporting date are considered current assets and those having maturity dates more than twelve months after the reporting date are considered non-current assets. At June 30, 2025, the Company’s held to maturity securities were scheduled to mature as follows:

 

Twelve months ending June 30,

 

Amortized

Cost

 

 

Estimated

Fair

Value

 

2026

 

$1,258,665

 

 

$1,258,548

 

2027 to 2029

 

 

8,828,584

 

 

 

8,865,736

 

         Total investment securities held to maturity

 

$10,087,249

 

 

$10,124,284

 

 

Line of Credit

 

The Company secured a $5,000,000 line of credit facility (“LOC”) in April 2025, which bears interest at one percent above the base commercial rate. The Company’s investment securities serve as collateral for the LOC on which the Company had no outstanding borrowings at June 30, 2025.