Cash, Cash Equivalents and Short-Term Investments

9 Months Ended

Sep. 30, 2020

Cash, Cash Equivalents and Short-Term Investments

Cash, Cash Equivalents and Short-Term Investments

Note 4. Cash, Cash Equivalents and Short-Term Investments

Cash, cash equivalents and short-term investments consisted of the following as of September 30, 2020 and December 31, 2019:

		September 30,		December 31,
	2020		2019
Cash	$	69,346,437	$	3,546,893
Cash equivalents:
Money market mutual fund		92,640,646		43,687,877
Total cash and cash equivalents		161,987,083		47,234,770
Short-term investments:
U.S. Treasury notes		26,425,170		21,094,100
Mutual funds		14,527,352		25,966,686
Total short-term investments		40,952,522		47,060,786
Cash, cash equivalents and short-term investments	$	202,939,605	$	94,295,556

Available-for-sale investments

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale investments by type of security at September 30, 2020 were as follows:

	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
U.S. Treasury notes	$	26,220,886	$	246,337	$	(42,053)	$	26,425,170
Total available-for-sale investments	$	26,220,886	$	246,337	$	(42,053)	$	26,425,170

The following table summarizes the fair value of available-for-sale investments based on stated contractual maturities as of September 30, 2020:

	Amortized Cost		Fair Value
Due within one year	$	14,121,596	$	14,137,570
Due between one and two years		12,099,290		12,287,600
Total	$	26,220,886	$	26,425,170

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale investments by type of security at December 31, 2019 were as follows:

	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
U.S. Treasury notes	$	21,121,659	$	26,552	$	(54,111)	$	21,094,100
Total available-for-sale investments	$	21,121,659	$	26,552	$	(54,111)	$	21,094,100

The following table summarizes the fair value of available-for-sale investments based on stated contractual maturities as of December 31, 2019:

	Amortized Cost		Fair Value
Due within one year	$	12,043,525	$	12,046,700
Due between one and two years		9,078,134		9,047,400
Total	$	21,121,659	$	21,094,100

The primary objective of our investment portfolio is to enhance overall returns in an efficient manner while maintaining safety of principal, prudent levels of liquidity and acceptable levels of risk. Our investment policy limits interest-bearing security investments to certain types of debt and money market instruments issued by institutions with primarily investment-grade credit ratings, and it places restrictions on maturities and concentration by asset class and issuer.

We review our available-for-sale investments for other-than-temporary declines in fair value below our cost basis each quarter and whenever events or changes in circumstances indicate that the cost basis of an asset may not be recoverable. The evaluation is based on a number of factors, including the length of time and the extent to which the fair value has been below our cost basis, as well as adverse conditions related specifically to the security such as any changes to the credit rating of the security and the intent to sell or whether we will more likely than not be required to sell the security before recovery of its amortized cost basis. Our assessment of whether a security is other-than-temporarily impaired could change in the future based on new developments or changes in assumptions related to that particular security.

During the three and nine months ended September 30, 2020, we had realized gains (losses) of $(6,900) and $10,000, respectively, on available-for-sale investments.

Equity Investments

We held investments in equity securities with readily determinable fair values of $14.5 million at September 30, 2020. These investments consist of mutual funds that invest primarily in tax-free municipal bonds and treasury inflation protected securities.

Unrealized gains (losses) during 2020 related to equity securities held at September 30, 2020 are as follows:

Net losses recognized during the nine months on equity securities	$	(367,010)
Less: net gains (losses) recognized during the period on equity securities sold during the period		(804,772)
Unrealized gains recognized during the nine months on equity securities still held at September 30, 2020	$	437,762