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Investments in Debt Securities Available for Sale

3 Months Ended

Mar. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Investments in Debt Securities Available for Sale

Note 6. Investment in Debt Securities Available for Sale

Investments in debt securities available for sale with a fair value of $15,000,045 as of March 31, 2021 consisted of government backed 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:

		March 31, 2021								December 31, 2020
		Cost				Fair Value				Cost				Fair Value
Short-term investments
Corporate debt securities		$	14,998,260			$	15,000,045			$	-				-
Total		$	14,998,260			$	15,000,045			$	-			$	-

		March 31, 2021								December 31, 2020
		Cost				Fair Value				Cost				Fair Value
Short-term investment maturities
Within 3 months		$	8,998,879			$	8,999,790			$	-			$	-
Between 3-12 months			5,999,381				6,000,255				-				-
Total		$	14,998,260			$	15,000,045			$	-			$	-

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 March 31, 2021 and December 31, 2020. The Company has reviewed individual securities to determine whether a decline in fair value below the amortizable cost basis is other than temporary.

		March 31, 2021								December 31, 2020
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		$	15,000,045			$	1,785			$	-			$	-
Total		$	15,000,045			$	1,785			$	-			$	-

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 March 31,
		2021				2020
Interest and dividends accrued and paid		$	2,411			$	45,077
Realized gains			–				43,232
Investment income net		$	2,411			$	88,309