Cash, Cash Equivalent, and Investments

9 Months Ended

Sep. 30, 2019

Cash and Cash Equivalents [Abstract]

The Company’s investments in debt securities are classified as held-to-maturity and are recorded at amortized cost, and its investments in money market funds are classified as cash equivalents. The following table shows the Company’s cash, available-for-sale securities, and short-term and long-term investment securities by major security type as of September 30, 2019 and December 31, 2018:


	September 30, 2019 (Unaudited)
				Gross		Gross
	Level			Unrealized		Unrealized
	⁽¹⁾	Fair Value		Holding Gains		Holding Losses		Adjusted Cost
Cash and Cash Equivalents
Cash		$	552,569	$	—	$	—	$	552,569
Money Market Funds	1	4,109,758		—		—		4,109,758
Subtotal		4,662,327		—		—		4,662,327
Short-Term Investment Securities ⁽²⁾
Corporate Bonds ⁽⁴⁾	2	30,794,626		16,862		(15,708)		30,793,472
Long-Term Investment Securities ⁽³⁾
Corporate Bonds ⁽⁴⁾	2	1,527,865		13,712		—		1,514,153
Total		$	36,984,818	$	30,574	$	(15,708)	$	36,969,952


	December 31, 2018 (Audited)
				Gross		Gross
	Level			Unrealized		Unrealized
	⁽¹⁾	Fair Value		Holding Gains		Holding Losses		Adjusted Cost
Cash and Cash Equivalents
Cash		$	1,048,272	$	—	$	—	$	1,048,272
Money Market Funds	1	1,338,042		—		—		1,338,042
Subtotal		2,386,314		—		—		2,386,314
Short-Term Investment Securities ⁽²⁾
Corporate Bonds ⁽⁴⁾	2	38,731,120		—		(85,321)		38,816,441
Total		$	41,117,434	$	—	$	(85,321)	$	41,202,755

_________________

Notes:

(1) Definition of the three-level fair value hierarchy:

•Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities

•Level 2 - Other inputs that are directly or indirectly observable in the markets

•Level 3 - Inputs that are generally unobservable

(2) Short-term investment securities will mature within 12 months or less, from the applicable reporting date.

(3) Long-term investment securities will mature between 12 and 18 months, from the applicable reporting date.

(4) The premium paid to purchase held-to-maturity investment securities was $54,385 and $0 for the three months ended September 30, 2019 and 2018, respectively. The premium paid to purchase held-to-maturity investment securities was $158,548

and $205,038 for the nine months ended September 30, 2019 and 2018, respectively. The premium paid to purchase held-to-maturity investment securities was $378,681 for the year ended December 31, 2018.The Company considers the declines in market value of its investment portfolio to be temporary in nature. The Company’s investment policy requires investment securities to be investment grade and held to maturity with the primary objective to maintain a high degree of liquidity while maximizing yield. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates, and whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s cost basis. As of September 30, 2019, the Company does not consider any of its investments to be other-than-temporarily impaired.