XML 24 R14.htm IDEA: XBRL DOCUMENT v3.21.2
Investment in Debt Securities Available for Sale
 6 Months Ended
Jun. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
Investment in Debt Securities Available for Sale

Note 7. Investment in Debt Securities Available for Sale

 

Investments in debt securities available for sale with a fair value of $31,923,285 as of June 30, 2021, consisted of government backed debt securities and commercial paper. 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 on 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:

 Schedule of Cost, Fair Value and Maturities of Short Term Investments

   June 30, 2021   December 31, 2020 
   Cost   Fair Value   Cost   Fair Value 
Short-term investments                    
Commercial paper  $7,795,035   $7,792,785   $-    - 
Government backed debt securities   24,132,020    24,130,500     -    - 
Total  $31,927,055   $31,923,285   $-   $- 

 

   June 30, 2021   December 31, 2020 
   Cost   Fair Value   Cost   Fair Value 
Short-term investment maturities                    
Within 3 months  $2,999,420   $7,792,785   $-   $- 
Between 3-12 months   28,927,635    24,130,500    -    - 
Total  $31,927,055   $31,923,285   $-   $- 

 

 

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 June 30, 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.

Summary of Investment Securities Gross Unrealized Gains (Losses)

   June 30, 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 with unrealized gains  $5,998,980   $1,073   $-   $- 
Investments with unrealized losses   25,924,305    (4,843)   -    - 
Total  $31,923,285   $(3,770)  $-   $- 

 

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

 Summary of Net Realized Losses on Sales of Available for Sale Securities and Investment Income Interest and Dividends

   2021   2020 
  

Three Months Ended

June 30,

 
   2021   2020 
Interest and dividends accrued and paid  $1,436   $18,095 
Realized (losses) gains   (1,785)   2,865 
Investment (loss) income, net  $(349)  $20,960 

 

   2021   2020 
  

Six Months Ended

June 30,

 
   2021   2020 
Interest and dividends accrued and paid  $3,847   $63,172 
Realized (losses) gains   (1,785)   46,097 
Investment income, net  $2,062   $109,269