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Investments

9 Months Ended

Sep. 30, 2019

The Company follows the provisions of Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, and for its non-financial assets and liabilities subject to fair value measurements. ASC 820 provides a framework for measuring the fair value of

assets and liabilities. This framework is intended to provide increased consistency in how fair value determinations are made under various existing accounting standards that permit, or in some cases, require estimates of fair-market value. This standard also expanded financial statement disclosure requirements about a company’s use of fair-value measurements, including the effect of such measurement on earnings. The cost of securities sold is based on the specific identification method.

The Company determines the fair value of its government securities, municipal bonds, and corporate bonds by utilizing monthly valuation statements that are provided by its broker. The broker determines the investment valuation by utilizing the bid price in the market and also refers to third party sources to validate valuations, and as such are classified as Level 2 assets.

The Company's certificates of deposit have remaining maturities of less than one year and are considered as Level 1 assets. These investments are carried at cost, which approximates fair value.

The Company will also periodically make technology investments in certain non-consolidated third-parties. These equity investments are accounted for in accordance with ASC 321, Investments - Equity Securities. Equity investments that do not have readily determinable fair values, and where the Company has not identified any observable events that would cause adjustment of the valuation to date, such equity investments are held at cost. These technology investments totaled $8.6 million and $3.85 million as of September 30, 2019 and December 31, 2018, respectively. These investments are classified within Long-Term Investments in the consolidated balance sheet.

Assets or liabilities that have recurring fair value measurements are shown below as of September 30, 2019 and December 31, 2018:

As of September 30, 2019:


			Fair Value Measurements at Reporting Date Using
	Total as of		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	September 30, 2019		(Level 1)		(Level 2)		(Level 3)
Cash & Cash Equivalents	$	260,151,083	$	260,151,083	$	—	$	—
Short-Term Investments:
Certificate of Deposit	150,299,384		150,299,384		—		—
Government Securities	38,163,353		—		38,163,353		—
Corporate Bonds	16,050,560		—		16,050,560		—
Municipal Bonds	1,671,264		—		1,671,264		—
Other	971,726		971,726		—		—
Long-Term Investments:
Corporate Bonds	42,320,659		—		42,320,659		—
Municipal Bonds	40,467,299		—		40,467,299		—
Government Securities	11,637,510		—		11,637,510		—




Total	$	561,732,838	$	411,422,193	$	150,310,645	$	—

As of December 31, 2018:


			Fair Value Measurements at Reporting Date Using
	Total as of		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	December 31, 2018		(Level 1)		(Level 2)		(Level 3)
Cash & Cash Equivalents	$	217,025,278	$	217,025,278	$	—	$	—
Short-Term Investments:
Certificate of Deposit	150,299,384		150,299,384		—		—
Government Securities	9,176,227		—		9,176,227		—

Corporate Bonds	6,967,700		—		6,967,700		—
Other	2,219,688		2,219,688		—		—
Long-Term Investments:
Corporate Bonds	60,369,930		—		60,369,930		—


Municipal Bonds	18,025,432		—		18,025,432		—
Government Securities	56,483,720		—		56,483,720		—
Total	$	520,567,359	$	369,544,350	$	151,023,009	$	—

The amortized cost, unrealized gains and losses, and market value of investment securities are shown as of September 30, 2019 and December 31, 2018:

As of September 30, 2019:


			Unrealized
	Cost		Gains		Losses		Market Value
Short-Term Investments:
Certificate of Deposit	$	150,299,384	$	—	$	—	$	150,299,384
Government Securities	38,067,382		97,271		(1,300)		38,163,353
Municipal Bonds	1,673,133		13,163		(15,032)		1,671,264
Corporate Bonds	15,955,794		94,766		—		16,050,560
Other	971,726		—		—		971,726
Long-Term Investments:
Corporate Bonds	41,191,483		1,130,771		(1,595)		42,320,659


Municipal Bonds	39,170,735		1,296,564		—		40,467,299
Government Securities	11,539,947		97,563		—		11,637,510
Total	$	298,869,584	$	2,730,098	$	(17,927)	$	301,581,755

As of December 31, 2018:


			Unrealized
	Cost		Gains		Losses		Market Value
Short-Term Investments:
Certificate of Deposit	$	150,299,384	$	—	$	—	$	150,299,384
Government Securities	9,186,586		—		(10,359)		9,176,227

Corporate Bonds	6,981,305		—		(13,605)		6,967,700
Other	2,219,688		—		—		2,219,688
Long-Term Investments:
Corporate Bonds	60,659,498		50,340		(339,908)		60,369,930

Municipal Bonds	17,840,518		184,914		—		18,025,432
Government Securities	56,280,552		205,553		(2,385)		56,483,720

Total	$	303,467,531	$	440,807	$	(366,257)	$	303,542,081

Unrealized losses on investments as of September 30, 2019, are as follows:


	Aggregate Unrealized Losses		Aggregate Fair Value
Less than one year	$	17,927	$	10,055,721
Greater than one year	—		—
Total	$	17,927	$	10,055,721

Unrealized losses on investments as of December 31, 2018, are as follows:


	Aggregate Unrealized Losses		Aggregate Fair Value
Less than one year	$	365,824	$	68,722,980
Greater than one year	433		3,000,000
Total	$	366,257	$	71,722,980

ASC 320, Accounting for Certain Investments in Debt and Equity Securities, as amended, provides guidance on determining when an investment is other than temporarily impaired. No investment losses were considered to be other than temporary during the periods presented. The Company has the intention and current ability to hold its debt investments until the amortized cost basis has been recovered.

Fixed income securities as of September 30, 2019 have contractual maturities as follows:


Due within one year	$	206,184,561
Due between one and five years	59,332,380
Due over five years	35,093,088
	$	300,610,029

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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