INVESTMENT IN DEBT SECURITIES HELD TO MATURITY

12 Months Ended

Dec. 31, 2025

INVESTMENT IN DEBT SECURITIES HELD TO MATURITY

INVESTMENT IN DEBT SECURITIES HELD TO MATURITY

NOTE 5 – INVESTMENT IN DEBT SECURITIES HELD TO MATURITY

In 2025, the Company purchased $19,934,953 of U.S. Treasury Strips with maturities ranging from approximately 12 to 62 months. These U.S. Treasury Strips have staggered maturities occurring every six months starting in May 2026 through November 2029, followed by a final maturity one year thereafter. The portfolio has an expected yield to maturity of approximately 3.8%.

The following is a summary of the Company’s investment securities held to maturity as of December 31, 2025:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated Fair
	Cost		Gains		Losses		Value
Held-to-maturity securities – current:
U.S. Treasury Strips	$	4,577,706	$	3,004	$	—	$	4,580,710
Held-to-maturity securities – noncurrent:
U.S. Treasury Strips		15,773,251		68,770		(2,144)		15,839,877
Total held-to-maturity securities	$	20,350,957	$	71,774	$	(2,144)	$	20,420,587

The Company recognized $416,004 of interest income from the accretion of its U.S. Treasury Strips in 2025. There was no interest income accretion recognized in 2024 as the Company did not hold any U.S. Treasury Strips during that year.

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 December 31, 2025, the Company’s held to maturity securities were scheduled to mature as follows:

	Amortized		Estimated Fair
	Cost		Value
Maturing in next twelve months	$	4,577,706	$	4,580,710
Maturing in next one to five years		15,773,251		15,839,877
Total held-to-maturity securities	$	20,350,957	$	20,420,587

Margin Credit Line

In 2025, the Company secured a $19,000,000 margin credit line with a national bank, which bears interest at one percent above the base commercial rate. The Company’s investment securities held to maturity, specifically its U.S. Treasury Strips, serve as collateral for the margin credit line on which the Company had no outstanding borrowings at December 31, 2025. Availability under the margin credit line is subject to customary margin requirements based on the value of the pledged securities.