Note 3. INVESTMENTS

The Company has an Investment Policy which provides for the investment of excess cash balances primarily in bond funds, commercial paper, and debt instruments. At March 31, 2012 the Company had all of its investments in bonds, bond funds or high grade commercial paper (Standard & Poor’s rating of “A” or above) which is classified as “available-for-sale.”

Pursuant to Section 825-10 of the ASC, the Company at the end of a period, compares the actual market value to the actual cost and uses that calculation to determine any gain or loss on the maturity or sale of each available-for-sale investment.

The following is a summary of the fair value of investment securities classified as “available-for-sale” as of March 31, 2012 and December 31, 2011. For each item included in the table below the gains or losses from Fair Value reporting are included in income for the quarter.


	Available-for-sale Securities at March 31, 2012 and December 31, 2011
	Amortized Cost		Net Unrealized				Fair Value
			Gains		Losses
Bond Funds at March 31, 2012	$	2,212,000	$	12,000	$	—	$	2,224,000
Bond Funds at December 31, 2011	$	2,700,000	$	3,000	$	—	$	2,703,000