6. Investments

The Company applies the fair value measurement and disclosure provisions of ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). ASC 820, which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. Investments consist primarily of investments with original maturities greater than three months, but no longer than 24 months when purchased.

ASC 820 establishes a three-level valuation hierarchy for fair value measurements. These valuation techniques are based upon the transparency of inputs (observable and unobservable) to the valuation of an asset or liability as of the measurement date. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs create the following fair value hierarchy:

Level 1 — Valuation is based on quoted prices for identical assets or liabilities in active markets.

Level 2 — Valuation is based on quoted prices for similar assets or liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for the full term of the financial instrument.

Level 3 — Valuation is based upon other unobservable inputs that are significant to the fair value measurement.

The fair value of the Company’s fixed income securities is based on a market approach using quoted market values.

The following table summarizes the fair value of cash and cash equivalents and investments as of December 31, 2013:


Description	Cost		Level 1		Level 2		Fair Value (Carrying Value)
Cash
Cash	$	7,887,502	$	7,887,502	$	—	$	7,887,502
Cash equivalents
Money market funds		44,959,438		44,959,438		—		44,959,438
Cash and cash equivalents	$	52,846,940	$	52,846,940	$	—	$	52,846,940
Short-term investments (due within 1 year)
U.S. government treasury obligations	$	5,009,194	$	5,013,850	$	—	$	5,013,850
U.S. government agency obligations		33,598,370		33,609,886		—		33,609,886
Corporate obligations		31,789,117		—		31,810,412		31,810,412
Total short-term investments	$	70,396,681	$	38,623,736	$	31,810,412	$	70,434,148
Long-term investments (due after 1 year through 2 years)
U.S. government agency obligations	$	14,807,642	$	14,821,065	$	—	$	14,821,065
Corporate obligations		10,743,707		—		10,750,594		10,750,594
Total long-term investments	$	25,551,349	$	14,821,065	$	10,750,594	$	25,571,659

The following table summarizes the fair value of cash and cash equivalents and investments as of December 31, 2014:


Description	Cost		Level 1		Level 2		Fair Value (Carrying Value)
Cash
Cash	$	6,068,579	$	6,068,579	$	—	$	6,068,579
Cash equivalents
Money market funds		39,464,864		39,464,864		—		39,464,864
Cash and cash equivalents	$	45,533,443	$	45,533,443	$	—	$	45,533,443
Short-term investments (due within 1 year)
U.S. government agency obligations	$	38,934,684	$	38,928,806	$	—	$	38,928,806
Corporate obligations		40,659,036		—		40,607,405		40,607,405
Total short-term investments	$	79,593,720	$	38,928,806	$	40,607,405	$	79,536,211
Long-term investments (due after 1 year through 2 years)
U.S. government treasury obligations	$	38,626,279	$	38,623,495	$	—	$	38,623,495
U.S. government agency obligations		35,223,450		35,203,355		—		35,203,355
Corporate obligations		7,947,275		—		7,934,327		7,934,327
Total long-term investments	$	81,797,004	$	73,826,850	$	7,934,327	$	81,761,177

All securities held at December 31, 2013 and 2014, were classified as available-for-sale as defined by ASC 320.

Total unrealized gross gains were $76,630 and $18,858 for the years ended December 31, 2013 and 2014, respectively. Total unrealized gross losses were $8,122 and $112,194 for the years ended December 31, 2013 and 2014, respectively. The Company does not consider any of the unrealized losses to be other-than-temporary impairments because the Company has the intent and ability to hold investments until they recover in value. Total realized gross gains were $11,342 and $1,429 for the years ended December 31, 2013 and 2014, respectively. There were no total realized gross losses for the years ended December 31, 2013 or 2014.