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Investment in Debt Securities-Available for Sale
 9 Months Ended
Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]  
Investment 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 $10,414,395 and $29,803,095 as of September 30, 2022 and December 31, 2021, respectively, which consisted of U.S. Treasury securities and 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.

 

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:

 

   September 30, 2022   December 31, 2021 
   Cost   Fair Value   Cost   Fair Value 
Short-term investments                    
U.S. Treasury securities  $-   $-   $14,786,982   $14,778,705 
Corporate debt securities   10,439,820    10,414,395    15,024,087    15,024,390 
Total  $10,439,820   $10,414,395   $29,811,069   $29,803,095 

 

   September 30, 2022   December 31, 2021 
   Cost   Fair Value   Cost   Fair Value 
Short-term investment maturities                    
Within 3 months  $5,995,105   $5,985,140   $19,798,177   $19,799,835 
Between 3-12 months   4,444,715    4,429,255    10,012,892    10,003,260 
Total  $10,439,820   $10,414,395   $29,811,069   $29,803,095 

 

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 September 30, 2022 and December 31, 2021. The Company has reviewed individual securities to determine whether a decline in fair value below the amortizable cost basis is other than temporary.

  

   September 30, 2022   December 31, 2021 
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  $3,991,260   $1,310   $8,999,580   $3,499 
Investments in debt securities with unrealized losses   6,423,135    (26,734)   20,803,515    (11,473)
Total  $10,414,395   $(25,424)  $29,803,095   $(7,974)

 

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:

   

   2022   2021 
  

For the Three Months Ended

September 30,

 
   2022   2021 
Interest and dividends accrued and paid  $163,670   $6,288 
Realized losses   (10,369)   (2,736)
Investment income, net  $153,301   $3,552 

 

 

   2022   2021 
  

For the Nine Months Ended

September 30,

 
   2022   2021 
Interest and dividends accrued and paid  $240,063   $10,135 
Realized losses   (34,303)   (4,521)
Investment income, net  $205,760   $5,614