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Investments in Debt Securities Available for Sale
 12 Months Ended
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt Securities Available for Sale

3. INVESTMENTS IN DEBT SECURITIES AVAILABLE FOR SALE

 

Investments in debt securities available for sale with a fair value of $7,985,886 as of December 31, 2019 consisted 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. The Company only had investments in cash and cash equivalents at December 31, 2020.

 

Investments in debt 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:

 

    December 31, 2020     December 31, 2019  
    Cost     Fair Value     Cost     Fair Value  
Short-term investments                                
Corporate debt securities   $ -     $ -     $ 7,943,108     $ 7,985,886  
Total   $ -     $ -     $ 7,943,108     $ 7,985,886  

 

    December 31, 2020     December 31, 2019  
    Cost     Fair Value     Cost     Fair Value  
Short-term investment maturities                                
Within 3 months   $ -     $ -     $ 7,943,108     $ 7,985,886  
Between 3-12 months     -       -       -       -  
Total   $ -     $ -     $ 7,943,108     $ 7,985,886  

 

The following table shows the Company’s investment in debt securities available for sale 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 December 31, 2020 and 2019. The Company has reviewed individual securities to determine whether a decline in fair value below the amortizable cost basis is other than temporary.

 

    December 31, 2020     December 31, 2019  
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 in debt securities with unrealized gains   $ -     $         -     $ 7,985,886     $ 42,778  
Investments in debt securities with unrealized losses     -       -       -       -  
Total   $ -     $ -     $ 7,985,886     $ 42,778  

 

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

 

    2020     2019  
Interest and dividends accrued and paid   $ 66,553     $ 442,987  
Realized gains     53,354       57,895  
Investment income net   $ 119,907     $ 500,882