Marketable Securities

Marketable securities include investments in fixed income and equity mutual funds and U.S. Government securities with maturities greater than

months, which are reported at their fair values. Effective

January 2018,

the Company adopted Accounting Standards Update (“ASU”)

2016

01,

“Recognition and Measurement of Financial Assets and Financial Liabilities”. This amendment requires companies to measure equity investments at fair value with the changes in fair value recognized in net income. U.S. Treasury Bills are considered debt securities and any unrealized gains and losses are reported in other comprehensive income. The U.S. Treasury Bills are considered held to maturity securities, as they are purchased direct from the U.S. Government and are unable to be sold before the maturity date.

The disaggregated net gains and losses on the marketable securities recognized in the income statements for the

three

- and

six

-month periods ended

June 30, 2019

and

June 30, 2018

were as follows:

	THREE MONTHS ENDED JUNE 30,						SIX MONTHS ENDED JUNE 30,
	2019			2018			2019			2018
Net gains (losses) recognized during the period on marketable securities	$	86,849		$	(18,256	)	$	344,043			(153,406	)
Less: Net (losses) gains recognized during the period on marketable securities sold during the period		(252,728	)		113,276			(247,499	)		113,276
Unrealized (losses) gains recognized during the reporting period on marketable securities still held at the reporting date	$	(165,879	)	$	95,020		$	96,544			(40,130	)

The fair values of the Company’s marketable securities are determined in accordance with US GAAP, with fair value being defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the Company utilizes the

three

-tier value hierarchy, as prescribed by US GAAP, which prioritizes the inputs used in measuring fair value as follows:

•

Level

- inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

•

Level

- inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

•

Level

– inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company’s marketable equity securities, which are considered available for sale securities, are re-measured to fair value on a recurring basis and are valued using Level

inputs using quoted prices (unadjusted) for identical assets in active markets.

The following tables summarize the Company’s investments:

June 30, 2019 (Unaudited)
Debt Securities	Cost		Fair value		Unrealized gain
U.S Treasury Bills (maturities of one year or less)	$	4,703,762	$	4,703,762	$	—
Total debt securities		4,703,762		4,703,762		—

Equity Securities
Fixed income mutual funds		2,037,031		2,182,337		145,306
Equity and other mutual funds		601,980		805,781		203,801
Total equity securities		2,639,011		2,988,118		349,107
Total marketable securities	$	7,342,773	$	7,691,880	$	349,107

December 31, 2018 (Audited)

Debt Securities
U.S Treasury Bills (maturities of one year or less)	$	3,742,681	$	3,742,681	$	—
Total debt securities		3,742,681		3,742,681		—

Equity Securities
Fixed income mutual funds		2,408,799		2,409,213		414
Equity and other mutual funds		1,218,153		1,470,302		252,149
Total equity securities		3,626,952		3,879,515		252,563
Total marketable securities	$	7,369,633	$	7,622,196	$	252,563

Investment income is recognized when earned and consists principally of interest income from fixed income mutual funds and U.S Treasury Bills, and dividend income from equity and other mutual funds. Realized gains and losses on sales of investments are determined on a specific identification basis.

Proceeds from the sale and redemption of marketable securities amounted to

$9,359,971

for the

first

half of

2019,

which includes a net gain on sales of

$247,499.

Proceeds from the sale and redemption of marketable securities amounted to

$4,097,370

for the

first

half of

2018,

which included realized losses of

$113,276.