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Investment in Debt Securities-Available for Sale
 6 Months Ended
Jun. 30, 2023
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 $17,400,025 and $21,254,485 as of June 30, 2023 and December 31, 2022, respectively, 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:

 

   June 30, 2023   December 31, 2022 
   Cost   Fair Value   Cost   Fair Value 
Short-term investments                    
U.S. Treasury securities  $5,960,208   $5,963,920   $-   $- 
Corporate debt securities   11,277,772    11,436,105    21,227,991    21,254,485 
Total  $17,237,980   $17,400,025   $21,227,991   $21,254,485 

 

   June 30, 2023   December 31, 2022 
   Cost   Fair Value   Cost   Fair Value 
Short-term investment maturities                    
Within 3 months  $10,765,740   $10,930,855   $4,005,559   $3,994,590 
Between 3-12 months   6,472,240    6,469,170    17,222,432    17,259,895 
Total  $17,237,980   $17,400,025   $21,227,991   $21,254,485 

 

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, 2023 and December 31, 2022. 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, 2023   December 31, 2022 
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  $13,412,665   $181,965   $13,278,505   $43,508 
Investments in debt securities with unrealized losses   3,987,360    (19,920)   7,975,980    (17,014)
Total  $17,400,025   $162,045   $21,254,485   $26,494 

 

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:

 

   2023   2022 
  

For the Three Months Ended

June 30,

 
   2023   2022 
Interest and dividends accrued and paid  $314,845   $61,951 
Realized losses   (33,172)   (21,596)
Investment income, net  $281,673   $40,355 

 

   2023   2022 
  

For the Six Months Ended

June 30,

 
   2023   2022 
Interest and dividends accrued and paid  $671,000   $76,393 
Realized losses   (136,257)   (23,934)
Investment income, net  $534,743   $52,459