INVESTMENT SECURITIES HELD TO MATURITY

9 Months Ended

Sep. 30, 2025

INVESTMENT SECURITIES HELD TO MATURITY

INVESTMENT SECURITIES HELD TO MATURITY

NOTE 6 – INVESTMENT SECURITIES HELD TO MATURITY

In April 2025, the Company purchased $9,991,259 of U.S. Treasury Strips with maturities ranging from approximately 12 to 54 months. These U.S. Treasury Strips are scheduled to mature approximately equally about every six months beginning in May 2026 and will generate interest yields of approximately 3.9%.

In September 2025, the Company purchased an additional $9,943,694 of U.S. Treasury Strips with maturities ranging from approximately 14 to 62 months. These U.S. Treasury Strips are scheduled to mature approximately equally every 12 months beginning in November 2026 and will generate interest yields of approximately 3.7%.

The Company has classified these securities as held-to-maturity because it has the intent and ability to hold them until their contractual maturity date. As a result, these securities are carried at amortized cost, which represents the original investment amount adjusted for the amortization of discounts using the effective interest method over the period from acquisition to maturity.

The following is a summary of the Company’s investment securities held to maturity as of September 30, 2025:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated Fair
	Cost		Gains		Losses		Value
Investment securities held to maturity - current:
U.S. Treasury Strips	$	1,270,666	$	684	$	—	$	1,271,350
Investment securities held to maturity - noncurrent:
U.S. Treasury Strips		18,886,727		37,526		(4,604)		18,919,649
Total investment securities held-to-maturity	$	20,157,393	$	38,210	$	(4,604)	$	20,190,999

The Company recognized interest income accretion on its U.S. Treasury Strips of $126,450 and $222,440 during the three and nine months ended September 30, 2025, respectively. There were no investment securities outstanding at December 31, 2024 or held during the nine months ended September 30, 2024.

Consistent with the Company’s classification of its U.S. Treasury Strips as held to maturity, those securities scheduled to mature in the next twelve months after the reporting date are considered current assets and those having maturity dates more than twelve months after the reporting date are considered non-current assets. At September 30, 2025, the Company’s held to maturity securities were scheduled to mature as follows:

	Amortized		Estimated Fair
Twelve months ending September 30,	Cost		Value
2026	$	1,270,666	$	1,271,350
2027 to 2030		18,886,727		18,919,649
Total investment securities held-to-maturity	$	20,157,393	$	20,190,999

Line of Credit

The Company secured a $5,000,000 line of credit facility (“LOC”) in April 2025 with a national bank, which bears interest at one percent above the base commercial rate. In September 2025, the LOC was increased to $10,000,000. The Company’s investment securities serve as collateral for the LOC on which the Company had no outstanding borrowings at September 30, 2025.