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Note 2 - Cash, Cash Equivalents, and Investments

9 Months Ended

Sep. 30, 2022

Cash, Cash Equivalents, and Marketable Securities [Text Block]

Note 2: Cash, Cash Equivalents, and Investments

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 investment securities by major security type as of September 30, 2022, and December 31, 2021:

	September 30, 2022 (Unaudited)
				Gross		Gross
	*Level*			*Unrealized*		*Unrealized*
	*(1)*	*Fair Value*		*Holding Gains*		*Holding Losses*			*Adjusted Cost*
Cash and Cash Equivalents
Cash		$	654,971	$	—	$	—		$	654,971
Money Market Funds	1		6,084,146		—		—			6,084,146
Subtotal			6,739,117		—		—			6,739,117
Short-Term Investment Securities⁽²⁾
Corporate Bonds⁽³⁾	2		7,397,900		—		(63,984	)		7,461,884
Total		$	14,137,017	$	—	$	(63,984	)	$	14,201,001

	*December 31, 2021 (Audited)*
				*Gross*		*Gross*
	*Level*			*Unrealized*		*Unrealized*
	*(1)*	*Fair Value*		*Holding Gains*		*Holding Losses*			*Adjusted Cost*
Cash and Cash Equivalents
Cash		$	1,377,094	$	—	$	—		$	1,377,094
Money Market Funds	1		14,371,386		—		—			14,371,386
Subtotal			15,748,480		—		—			15,748,480
Short-Term Investment Securities ⁽²⁾
Corporate Bonds ⁽³⁾	2		4,509,285		—		(2,495	)		4,511,780
Total		$	20,257,765	$	—	$	(2,495	)	$	20,260,260

_________________

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) For the three months ended September 30, 2022 and 2021, the Company paid discounts of $5,072 and $0 to purchase held-to-maturity investment securities, respectively. For the nine months ended September 30, 2022 and 2021, the Company paid premiums of $24,198 and $283,940 to purchase held-to-maturity investment securities, respectively. For the year ended December 31, 2021 the Company paid premium of $283,940 to purchase held-to-maturity investment securities.

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, 2022, the Company does not consider any of its investments to be other-than-temporarily impaired.