Fair Value Measurement of Assets and Liabilities

9 Months Ended

Sep. 30, 2011

Fair Value Measurement of Assets and Liabilities [Abstract]

Fair Value Measurement of Assets and Liabilities

6. Fair Value Measurement of Assets and Liabilities

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2011 and December 31, 2010:

			Quoted Prices in				Quoted Prices in
	Balances as of		active markets for		Balances as of		active markets for
	September 30,		identical Assets		December 31,		identical Assets
Description	2011		(Level 1)		2010		(Level 1)
Assets
Cash and Cash Equivalents:
Money Market Funds	$	14,533,599	$	14,533,599	$	14,578,477	$	14,578,477
Investments:
Asset backed securities		17,762,521		17,762,521		14,319,103		14,319,103
Sovereign Debt Securities		10,635,822		10,635,822		13,147,239		13,147,239
Corporate Debt Securities		14,720,669		14,720,669		11,381,761		11,381,761
Total financial Assets	$	57,652,611	$	57,652,611	$	53,426,580	$	53,426,580

The Company’s financial assets are valued using market prices on active markets (level 1). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. As of September 30, 2011 and December 31, 2010, the Company did not have any assets obtained from readily-available pricing sources for comparable instruments (level 2) or without observable market values that would require a high level of judgment to determine fair value (level 3).

The unrealized net gains on short term and long term investments are reported as a component of accumulated other comprehensive income. The Company does not anticipate any significant realized losses associated with those investments in excess of the Company’s historical cost.

In addition, as of September 30, 2011, the Company had $65,462,243 of short-term investments, which consisted of time deposits maintained as held to maturity investments. As of December 31, 2010, the Company had $45,340,944 of short-term and long-term investments, which consisted of time deposits considered held to maturity securities. Those investments are accounted for at amortized cost which, as of September 30, 2011 and December 31, 2010, approximates their fair values.

As of September 30, 2011 and December 31, 2010, the carrying value of the Company’s cash and cash equivalents approximated their fair value which was held primarily in money markets funds and bank deposits. In addition, the carrying value of accounts receivables, funds receivables from customers, other receivables, other assets, accounts payables, social security payables, taxes payables, loans and provisions and other liabilities approximates their fair values because of its short term maturity.

For the three- and nine-month periods ended September 30, 2011 and 2010, the Company held no direct investments in auction rate securities, collateralized debt obligations, structured investment vehicles. As of September 30, 2011 and December 31, 2010, the Company does not have any non-financial assets or liabilities measured at fair value.

As of September 30, 2011 and December 31, 2010, the fair value of short and long-term investments classified as available for sale securities are as follows:

	September 30, 2011
			Gross		Gross
	Gross Amortized		Unrealized		Unrealized			Estimated Fair
	Cost		Gains		Losses (1)			Value
Short-term investments
Sovereign Debt Securities	$	1,733,173	$	3,035	$	—		$	1,736,208
Corporate Debt Securities		384,983		—		(4,940	)		380,043
Total Short-term investments	$	2,118,156	$	3,035	$	(4,940	)	$	2,116,251
Long-term investments
Sovereign Debt Securities	$	8,269,512	$	630,102	$	—		$	8,899,614
Corporate Debt Securities		14,312,659		172,068		(144,099	)		14,340,628
Asset Backed Securities (2)		17,022,343		754,516		(14,339	)		17,762,520
Total Long-term investments	$	39,604,514	$	1,556,686	$	(158,438	)	$	41,002,762
Total	$	41,722,670	$	1,559,721	$	(163,378	)	$	43,119,013

	December 31, 2010
			Gross
	Gross Amortized		Unrealized		Gross Unrealized			Estimated Fair
	Cost		Gains		Losses (1)			Value
Short-term investments
Corporate Debt Securities	$	398,752	$	26	$	(773	)	$	398,005
Total short-term investments	$	398,752	$	26	$	(773	)	$	398,005
Long-term investments
Sovereign Debt Securities	$	13,282,207	$	98,958	$	(233,926	)	$	13,147,239
Corporate Debt Securities		10,987,910		110,521		(114,675	)		10,983,756
Asset Backed Securities		14,107,501		439,239		(227,637	)		14,319,103
Total long-term investments	$	38,377,618	$	648,718	$	(576,238	)	$	38,450,098
Total	$	38,776,370	$	648,744	$	(577,011	)	$	38,848,103

(1)	Unrealized losses from securities are primarily attributable to market price movements. Management does not believe any remaining unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence including the credit rating of the investments, as of September 30, 2011 and December 31, 2010.
(2)	Asset backed securities have investment grade credit ratings. These investments are collateralized by real estate and they are guaranteed by the U.S. Federal Government.

As of September 30, 2011, the estimated fair values of short-term and long-term investments classified by its contractual maturities are as follows:

One year or less	$	2,116,252
One year to two years		5,452,507
Two years to three years		3,228,204
Three years to four years		3,812,512
Four years to five years		1,781,791
More than five years		26,727,747
Total	$	43,119,013