Annual report pursuant to Section 13 and 15(d)

Fair Value Measurement - Marketable Securities

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Fair Value Measurement - Marketable Securities
 12 Months Ended
Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
Fair Value Measurement - Marketable Securities

Note 5 - Fair Value Measurement - Marketable Securities

 

Following is a description of the valuation methodologies used for assets measured at fair value as of December 31, 2017 and 2016.

 

U.S. Agency Securities and Corporate and Municipal Securities: Valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing value on yields currently available on comparable securities of issuers with similar credit ratings.

 

    As of December 31, 2017  
          Accrued     Unrealized     Unrealized     Fair  
    Cost     Income     Gains     Losses     Value  
Level 2:                                        
Money market funds   $ 5,165     $ 161     $ -     $ -     $ 5,326  
Municipal securities     5,005,000       1,281       -       -       5,006,281  
Total Level 2:     5,010,165       1,442       -       -       5,011,607  
                                         
Total:   $ 5,010,165     $ 1,442     $ -     $ -     $ 5,011,607  

  

    As of December 31, 2016  
    Cost     Accrued
Income 		    Unrealized
Gains 		    Unrealized
Losses 		    Fair
Value 		 
Level 2:                                        
Money market funds   $ 29,657     $ 15     $ -     $ -     $ 29,672  
Municipal securities     20,314       15       -       -       20,329  
Total Level 2:     49,971       30       -       -       50,001  
                                         
Total:   $ 49,971     $ 30     $ -     $ -     $ 50,001  

 

Marketable securities are classified as available for sale. The securities are valued at fair market value. Maturities of the securities are less than one year. Unrealized gains relating to the available for sale investment securities were recorded in the Consolidated Statement of Changes in Shareholders’ Equity as comprehensive income. These amounts were an unrealized gain of $- and $6,231 (net of effect of income tax expense of $-) for the years ended December 31, 2017 and 2016.

 

Proceeds from the sale of marketable securities in the years ended December 31, 2017 and 2016 were $2,749,147 and $4,003,034. Net gains of $3,375 and net losses of $85 resulted from these sales for the years ended December 31, 2017 and 2016.