Available for Sale Securities

3 Months Ended

Mar. 31, 2017

Investments Debt And Equity Securities [Abstract]

Available for Sale Securities

Note 5. Available for Sale Securities

The Company’s portfolio of available-for-sale securities consists of U.S. Treasuries and high credit quality corporate debt securities. The following is a summary of the Company’s available-for-sale securities at March 31, 2017 and December 31, 2016:  

	March 31, 2017
			Gross		Gross			Fair Value
	Amortized		Unrealized		Unrealized			(Net Carrying
	Cost		Gains		Losses			Amount)
U.S. Treasury securities	$	1,302,498	$	-	$	(178	)	$	1,302,320
Corporate debt securities		1,309,066		—		(558	)		1,308,508
Total available-for-sale securities	$	2,611,564	$	-	$	(736	)	$	2,610,828

	December 31, 2016
			Gross		Gross			Fair Value
	Amortized		Unrealized		Unrealized			(Net Carrying
	Cost		Gains		Losses			Amount)
U.S. Treasury securities	$	1,300,151	$	512	$	—		$	1,300,663
Corporate debt securities		3,005,840		—		(1,602	)		3,004,238
Total available-for-sale securities	$	4,305,991	$	512	$	(1,602	)	$	4,304,901

The net adjustment to unrealized holding gains on available-for-sale securities, net of tax in other comprehensive income totaled $354 and $39,351 and for the three months ended March 31, 2017 and 2016, respectively.

Contractual maturities of debt investment securities at March 31, 2017 are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.

	Under
	1 Year		1 to 2 Years		Total
U.S. Treasury securities	$	1,302,320	$	—	$	1,302,320
Corporate debt securities		1,308,508		—		1,308,508
Total available-for-sale securities	$	2,610,828	$	—	$	2,610,828

The following table shows the gross unrealized losses and fair values of the Company’s investments that have unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2017:

	Under 1 Year					1 to 2 Years					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
U.S. Treasury securities	$	1,302,320	$	(178	)	$	—	$	—		$	1,302,320	$	(178	)
Corporate debt securities		—		—			1,308,508		(558	)		1,308,508		(558	)
Total available-for-sale securities with unrealized    losses	$	1,302,320	$	(178	)	$	1,308,508	$	(558	)	$	2,610,828	$	(736	)

For debt securities, the Company determines whether it intends to sell or if it is more likely than not that it will be required to sell impaired securities. This determination considers current and forecasted liquidity requirements, regulatory and capital requirements and securities portfolio management. For all impaired debt securities for which there was no intent or expected requirement to sell, the evaluation considers all available evidence to assess whether it is likely the amortized cost value will be recovered. The Company conducts a regular assessment of its debt securities with unrealized losses to determine whether securities have other-than-temporary impairment considering, among other factors, the nature of the securities, credit rating or financial condition of the issuer, the extent and duration of the unrealized loss, expected cash flows of underlying collateral, market conditions and whether the Company intends to sell or it is more likely than not that the Company will be required to sell the debt securities. The Company did not have any other-than-temporary impairment in its available-for-sale securities at March 31, 2017 or December 31, 2016.