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FAIR VALUE OF FINANCIAL INSTRUMENTS
9 Months Ended
Sep. 30, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS  
FAIR VALUE OF FINANCIAL INSTRUMENTS

4.    FAIR VALUE OF FINANCIAL INSTRUMENTS

ASC 820, “Fair Value Measurements”, defines fair value, establishes a framework for measuring fair value and requires additional disclosures regarding certain fair value measurements.  ASC 820 establishes a three-tier hierarchy for measuring fair value, as follows:

Level 1 – quoted market prices in active markets for identical assets and liabilities

Level 2 – inputs other than quoted prices that are directly or indirectly observable

Level 3 – unobservable inputs where there is little or no market activity

The following tables summarize the values of assets designated as Investments in debt and equity securities:

September 30, 2023

    

Level 1

    

Level 2

    

Level 3

    

Total

Equity securities

$

17,635,793

$

17,635,793

Mutual funds

15,389,017

15,389,017

Municipal bonds

 

624,331

 

 

 

624,331

$

33,649,141

$

$

$

33,649,141

December 31, 2022

    

Level 1

    

Level 2

    

Level 3

    

Total

Equity securities

$

27,692,459

$

$

$

27,692,459

Mutual funds

1,302,973

1,302,973

Municipal bonds

661,882

661,882

$

29,657,314

$

$

$

29,657,314

The investment assets are readily marketable and are carried at fair value as of the date of the Condensed Balance Sheets. The Company intends to hold these assets for possible future operating requirements. The following table summarizes gross unrealized gains and losses from Investments in debt and equity securities:

September 30, 2023

Cumulative Unrealized

Aggregate

    

Cost

    

Gains

    

Losses

    

Fair Value

Equity securities

24,074,113

(6,438,320)

17,635,793

Mutual funds

15,381,743

7,274

15,389,017

Municipal bonds

 

635,177

 

 

(10,846)

 

624,331

$

40,091,033

$

7,274

$

(6,449,166)

$

33,649,141

December 31, 2022

Cumulative Unrealized

Aggregate

    

Cost

    

Gains

    

Losses

    

Fair Value

Equity securities

$

22,913,739

$

4,778,720

$

$

27,692,459

Mutual funds

1,252,804

50,169

1,302,973

Municipal bonds

 

634,455

27,427

661,882

$

24,800,998

$

4,856,316

$

$

29,657,314

Unrealized losses on investments in debt and equity securities were $(11.3) million and $(1.2) million for the nine months ended September 30, 2023 and 2022, respectively.