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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2019

Note 6. Fair Value of Financial Instruments

Short-term investments available for sale were approximately $15.7 million and $14.3 million as of June 30, 2019 and December 31, 2018, respectively, and consist of corporate debt securities. These investments are valued at estimated fair value, with unrealized gains and losses reported as a separate component of stockholders’ equity in accumulated other comprehensive loss.

Securities available for sale are evaluated periodically to determine whether a decline in their value is other than temporary. The term “other than temporary” is not intended to indicate a permanent decline in value. Rather, it means that the prospects for near term recovery of value are not necessarily favorable, or that there is a lack of evidence to support fair values equal to, or greater than, the carrying value of the security. Management reviews criteria such as the magnitude and duration of the decline, as well as the reasons for the decline, to predict whether the loss in value is other than temporary. Once a decline in value is determined to be other than temporary, the value of the security is reduced and a corresponding charge to earnings is recognized.

A summary of the cost, fair value and maturities of the Company’s short-term investments is as follows:

	June 30, 2019				December 31, 2018
	Cost		Fair Value		Cost		Fair Value
Short-term investments
Corporate debt securities	$	15,607,812	$	15,702,388	$	14,228,126	$	14,257,998
Total	$	15,607,812	$	15,702,388	$	14,228,126	$	14,257,998

	June 30, 2019				December 31, 2018
	Cost		Fair Value		Cost		Fair Value
Short-term investment maturities
Within 3 months	$	9,821,406	$	9,897,504	$	5,383,488	$	5,393,743
Between 3-12 months		5,786,406		5,804,884		8,844,638		8,864,255
Total	$	15,607,812	$	15,702,388	$	14,228,126	$	14,257,998

The following table shows the Company’s investment securities gross unrealized gains (losses) and fair value by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018. The Company has reviewed individual securities to determine whether a decline in fair value below the amortizable cost basis is other than temporary.

	June 30, 2019					December 31, 2018
Available for sale securities (all unrealized holding gains and losses are less than 12 months at date of measurement)	Fair Value		Unrealized Holding Gains (Losses)			Fair Value		Unrealized Holding Gains (Losses)

Investments with unrealized gains	$	14,395,809	$	95,013		$	7,515,676	$	38,068
Investments with unrealized losses		1,306,579		(437	)		6,742,322		(8,196	)
Total	$	15,702,388	$	94,576		$	14,257,998	$	29,872

Investment income, which includes net realized losses on sales of available for sale securities and investment income interest and dividends, is summarized as follows:

	Three Months Ended June 30,
	2019		2018
Interest and dividends accrued and paid	$	143,633	$	69,559
Realized gains		969		3,902
Investment income, net	$	144,602	$	73,461

	Six Months Ended June 30,
	2019		2018
Interest and dividends accrued and paid	$	248,043	$	138,848
Realized gains		10,350		8,337
Investment income, net	$	258,393	$	147,185