XML 20 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
3. Fair Value of Financial Instruments:
 9 Months Ended
Sep. 30, 2012
Fair Value Disclosures [Abstract]  
3. Fair Value of Financial Instruments:
  Authoritative accounting guidance defines fair value, establishes a framework for measuring fair value and establishes a fair value hierarchy. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between participants at the measurement date. Fair value measurements are not adjusted for transaction costs. The fair value hierarchy prioritizes inputs to valuation techniques used to measure fair value into three levels:
   
  Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.
   
  Level 2 – Inputs other than quoted prices that are observable, either directly or indirectly, and reasonably available.
   
  Level 3 – Unobservable inputs which reflect the assumptions that management develops based on available information about the assumptions market participants would use in valuing the asset or liability.

 

   
  The classification of financial instruments valued at fair value at September 30, 2012 is as follows:

 

               
Financial
Instruments		   Level 1   Total  
           
Cash equivalents   $ 20,103,000   $ 20,103,000  
               
Securities     238,000     238,000  
               
    $ 20,341,000   $ 20,341,000  

 

   
  Securities consist of common stock valued on the last business day of the period at the last available reported sales price on the primary securities exchange (Level 1). As of September 30, 2012, the Company did not hold any level 2 or level 3 financial instruments.
   
  In May 2011, the Financial Accounting Standards Board issued guidance to expand disclosures for Level 3 measurements based on unobservable inputs. The Company adopted this standard in January 2012. The adoption of this standard did not have any impact on the Company’s disclosures.