Note 9 - Marketable Securities

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

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

9. Marketable Securities

The Company’s marketable securities include investments in equity mutual funds and Certificates of Deposit with maturities longer than three months. The Company’s marketable equity securities are reported at fair value with the related unrealized and realized gains and losses included in net income. Certificates of Deposit and U.S. Treasury Bills are recorded at amortized cost. Realized gains or losses on mutual funds are determined on a specific identification basis. The Company evaluates its investments periodically for possible other-than-temporary impairment by reviewing factors such as the length of time and extent to which fair value had been below cost basis, the financial condition of the issuer and the Company’s ability and intent to hold the investment for a period of time which may be sufficient for anticipated recovery of market value.

The disaggregated net gains and losses on the marketable securities recognized in the income statements for the three and nine months ended September 30, 2024 and 2023, respectively, are as follows:

	Three months ended					Nine months ended
	September 30,					September 30,
	2024		2023			2024		2023
Net gains (losses) recognized during the period on marketable securities	$	47,223	$	(14,357	)	$	79,218	$	65,823
Less: Net losses recognized during the period on marketable securities sold during the period		-		-			-		(433,769	)
Unrealized gains (losses) recognized during the reporting period on marketable securities still held at the reporting date	$	47,223	$	(14,357	)	$	79,218	$	499,592

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 Company’s fixed income Certificates of Deposit and U.S. Treasury Bills are considered held-to-maturity securities and are valued at amortized cost.

The following tables summarize the Company’s investments:

September 30, 2024(Unaudited)   

					Unrealized
	Cost		Fair Value		Gain
Equity Securities:
Equity and other mutual funds	$	587,394	$	668,600	$	81,206
Other short-term investments:
Fixed income Certificates of Deposit (original maturities > 3 months)		948,642		948,642		-
U.S. Treasury Bills (original maturities > 3 months)		5,437,227		5,437,227		-
Total marketable securities	$	6,973,263	$	7,054,469	$	81,206

December 31, 2023(Audited)

					Unrealized
					Gain
Equity Securities:
Equity and other mutual funds	$	574,330	$	576,318	$	1,988
Other short-term investments:
Fixed income Certificates of Deposit (original maturities > 3 months)		275,000		275,000		-
Total marketable securities	$	849,330	$	851,318	$	1,988

Investment income is recognized when earned and consists principally of dividend income from equity mutual funds and interest income from U.S. Treasury Bills, Certificates of Deposit and money market 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 $1,065,000 for the nine months ended September 30, 2024 and there were no realized gains or losses. Proceeds from the sale and redemption of marketable securities amounted to $5,255,145 for the nine months ended September 30, 2023, which included realized losses of $433,769.