The following table shows the Company’s available-for-sale securities cost, accrued income, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as marketable securities as of June 30, 2014. The Company had no marketable securities as of December 31, 2013.

 

		2014
						Accrued		Unrealized			Unrealized			Fair
		Cost				Income		Gains			Losses			Value
Level 1:
Money market funds		$	900		$	-		$	-		$	-		$	900
Mutual funds			748,088			1,191			310			-			749,589
US agency securities			300,000			1,198			30			-			301,228
Certificates of deposits			3,920,000			8,452			-			(1,952)			3,926,500
Corporate securities			600,000			1,253			-			(1,527)			599,726
Municipal securities			5,863,656			3,601			-			(410)			5,866,847
Total Level 1:			11,432,644			15,695			340			(3,889)			11,444,790
Total:		$	11,432,644		$	15,695		$	340		$	(3,889)		$	11,444,790

 

The net realized losses are primarily related to long-term marketable securities. The Company may sell certain of its securities prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. During the six months ended June 30, 2014 the net realized gains recognized by the Company were not significant. The maturities of the Company’s long-term marketable securities generally range from one to three years.

 

As of June 30, 2014, the Company considered the declines in market value of its marketable securities investment portfolio to be temporary in nature and did not consider any of its investments other-than-temporarily impaired. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s cost basis. During the six months ended June 30, 2014 the Company did not recognize any significant impairment charges.