Available for Sale Securities

6 Months Ended

Jun. 30, 2018

Investments Debt And Equity Securities [Abstract]

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 June 30, 2018:

	June 30, 2018
			Gross		Gross			Fair Value
	Amortized		Unrealized		Unrealized			(Net Carrying
	Cost		Gains		Losses			Amount)
U.S. Treasury securities	$	11,997,649	$	—	$	(8,064	)	$	11,989,585
Corporate debt securities		22,969,626		—		(3,275	)		22,966,351
Total available-for-sale securities	$	34,967,275	$	—	$	(11,339	)	$	34,955,936

The Company had no available-for-sale securities at December 31, 2017.

The net adjustment to unrealized holding gains (losses) on available-for-sale securities, net of tax in other comprehensive income totaled $(188) and $(11,339) for the three and six months ended June 30, 2018, and $736 and $1,090 for the three and six months ended June 30, 2017, respectively.

Contractual maturities of debt investment securities at June 30, 2018 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	$	11,989,585	$	—	$	11,989,585
Corporate debt securities		22,966,351		—		22,966,351
Total available-for-sale securities	$	34,955,936	$	—	$	34,955,936

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 June 30, 2018:

	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	$	11,989,585	$	(8,064	)	$	—	$	—	$	11,989,585	$	(8,064	)
Corporate debt securities		2,391,305		(3,275	)		—		—		2,391,305		(3,275	)
Total available-for-sale securities with unrealized losses	$	14,380,890	$	(11,339	)	$	—	$	—	$	14,380,890	$	(11,339	)

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 June 30, 2018 or December 31, 2017.