Short-term Investments

3 Months Ended

Mar. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Short-term investments at March 31, 2021 consisted of mutual funds, U.S. treasury securities, certificates of deposit and U.S. agency mortgage-backed securities. Short-term investments at December 31, 2020 consisted of mutual funds, certificates of deposit and U.S. agency mortgage-backed securities. Short-term investments are recorded at fair value, based on current market valuations. Unrealized gains and losses on the Company's short-term debt investments are excluded from earnings and reported as a separate component of other comprehensive loss until realized. Realized gains and losses and unrealized gains and losses on available-for-sale equity securities are included in non-operating other income (expense) on the condensed consolidated statements of operations and are derived using the specific identification method for determining the cost of the securities sold. During the three months ended March 31, 2021 and 2020, the Company recorded gross realized gain on investments of $0 and $50,000, respectively, and gross realized loss on investments of $10,000 and $525,000, respectively. During the three months ended March 31, 2021 and 2020, the Company recorded net unrealized loss on available-for-sale equity securities of $(848,000) and $(5.1) million, respectively. No material balances were reclassified out of accumulated other comprehensive income (loss) for the three months ended March 31, 2021 and 2020. Interest and dividends on investments classified as available-for-sale are included in interest income in the condensed consolidated statements of operations.

The following is a summary of available-for-sale securities as of March 31, 2021 and December 31, 2020:


		As of March 31, 2021
	Contractual Maturity (in years)	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Mutual funds	---	$	228,101,615	$	1,562,498	$	(714,957)	$	228,949,156
U.S. treasury securities	Less than 1	200,408,976		14,404		(9,380)		200,414,000

Certificates of deposit	Less than 1	2,977,623		19,700		(5,123)		2,992,200
U.S. agency mortgage-backed securities	*	2,646,077		1,100		(33,005)		2,614,172

		$	434,134,291	$	1,597,702	$	(762,465)	$	434,969,528


		As of December 31, 2020
	Contractual Maturity (in years)	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Mutual funds	---	$	153,177,675	$	2,339,639	$	(644,140)	$	154,873,174
Certificates of deposit	Less than 1	3,000,000		26,260		(10,000)		3,016,260
U.S. agency mortgage-backed securities	*	3,062,256		—		(36,755)		3,025,501


Total investments		$	159,239,931	$	2,365,899	$	(690,895)	$	160,914,935

*No single maturity date.

The Company periodically reviews its portfolio of available-for-sale debt securities to determine if any investment is impaired due to credit loss or other potential valuation concerns. For the debt securities where the fair value of the investment is less than the amortized cost basis, the Company has assessed at the individual security level for various quantitative factors including, but not limited to, the nature of the investments, changes in credit ratings, interest rate fluctuations, industry analyst reports, and the severity of impairment. Unrealized losses on available-for-sale debt securities as of March 31, 2021 were primarily due to changes in interest rates, including credit spreads from perceived increased credit risks as a result of the COVID-19 global pandemic, and not due to increased credit risks associated with specific securities. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity. Based on the credit quality of the available-for-sale debt securities that are in an unrealized loss position, and the Company’s estimates of future cash flows to be collected from those securities, the Company believes the unrealized losses are not credit losses. Accordingly, at March 31, 2021, the Company has not recorded an allowance for credit losses related to its available-for-sale debt securities.