Note 7 - Marketable Securities

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

7.        Marketable Securities

Marketable securities include investments in fixed income and equity mutual funds which are reported at their fair values.

The disaggregated net gains and losses on marketable securities that were recognized on the income statements for the three and six months ended June 30, 2022 and June 30, 2021 were as follows:

	THREE MONTHS ENDED JUNE 30,					SIX MONTHS ENDED JUNE 30,
	2022			2021		2022			2021
Net (losses) gains recognized during the period on marketable securities	$	(460,278	)	$	137,574	$	(853,938	)	$	65,527
Less: Net (losses) gains recognized on marketable securities sold during during the period		(207,936	)		112,180		(207,936	)		112,180
Unrealized (losses) gains recognized during the reporting period on marketable securities still held at the reporting date	$	(252,342	)	$	25,394	$	(646,002	)	$	(46,653	)

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

•    Level 2 - 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 3 – 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 1 inputs using quoted prices (unadjusted) for identical assets in active markets.

The following tables summarize the Company’s investments:

June 30, 2022 (unaudited)

		Cost		Fair value		Unrealized (loss)gain
Equity Securities
Fixed income mutual funds	$	6,214,590	$	5,722,563	$	(492,027	)
Equity and other mutual funds		672,199		687,519		15,320
Total equity securities		6,886,789		6,410,082		(476,707	)
Total marketable securities	$	6,886,789	$	6,410,082	$	(476,707	)

December 31, 2021 (audited)

Equity Securities
Fixed income mutual funds	$	6,814,420	$	6,873,333	$	58,913
Equity and other mutual funds		651,748		762,130		110,382
Total equity securities		7,466,168		7,635,463		169,295
Total marketable securities	$	7,466,168	$	7,635,463	$	169,295

Investment income is recognized when earned and consists principally of dividend income from equity and fixed income 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 $1,658,292 for the first half of 2022, which includes realized losses of $207,936. Proceeds from the sale and redemption of marketable securities amounted to $1,832,827 for the first half of 2021, which included realized gains on sales of $112,180.