Investment in Fair Value

9 Months Ended

Mar. 31, 2015

Investment in Fair Value [Abstract]

Investment in Fair Value

Note 2. Investment in Fair Value

ASC 820 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

§ Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

§ Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

§ Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The carrying amounts reported in the balance sheet of cash, accounts receivable, prepaids, accounts payable and accrued expenses approximate fair value because of the immediate or short-term maturity of these financial instruments.

Investment securities at March 31, 2015 and June 30, 2014 consist of certificates of deposit and municipal bonds which are classified as available-for-sale securities and have been determined to be level 1 assets. The cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale securities by major security type at March 31, 2015 and June 30, 2014 are as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
March 31, 2015
Certificates of deposit	$	3,380,000	$	—	$	—		$	3,380,000
Municipal bonds		870,279		2,152		(6,935	)		865,496
Total investment securities	$	4,250,279	$	2,152	$	(6,935	)	$	4,245,496
June 30, 2014
Certificates of deposit	$	4,063,000	$	—	$	—		$	4,063,000
Municipal bonds		850,103		2,857		(5,067	)		847,893
Total investment securities	$	4,913,103	$	2,857	$	(5,067	)	$	4,910,893

The portfolio is diversified and highly liquid and primarily consists of investment grade fixed income instruments. At March 31, 2015, the Company did not have any investments in individual securities that have been in a continuous loss position considered to be other than temporary. Due to the fact that the decline in market value is attributable to changes in interest rates and not credit quality, and because the severity and duration of the unrealized losses were not significant, the Company considered these unrealized losses to be temporary at March 31, 2015.

As of March 31, 2015 and June 30, 2014, the contractual maturities of available-for-sale securities were as follows:

	Years to Maturity
	Less than		One to
	One Year		Five Years		Total
March 31, 2015
Available-for-sale	$	3,755,176	$	490,320	$	4,245,496
June 30, 2014
Available-for-sale	$	4,434,575	$	476,318	$	4,910,893