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Investments

6 Months Ended

Jun. 30, 2021

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 with respect to a company’s use of fair-value measurements, including the effect of such measurements on earnings. The cost of securities sold is based on the specific identification method.

The Company determines the fair value of its government securities, asset-backed 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 are classified as available for sale and are considered as Level 1 assets. These investments are carried at cost, which approximates fair value.

The Company also periodically makes 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, are then held at cost. These technology investments totaled approximately $9.0 million and $4.0 million as of June 30, 2021 and December 31, 2020, respectively. These investments are classified within Long-Term Investments in the consolidated balance sheets.

Assets or liabilities that have recurring fair value measurements are shown below as of June 30, 2021 and December 31, 2020:

As of June 30, 2021:


			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	June 30, 2021		(Level 1)		(Level 2)		(Level 3)
Cash & Cash Equivalents	$	353,032,803	$	353,032,803	$	—	$	—
Short-Term Investments:
Certificate of Deposit	1,511,377		1,511,377		—		—
Corporate Bonds	2,020,280		—		2,020,280		—
Government Securities	602,016		—		602,016		—
Municipal Bonds	7,951,512		—		7,951,512		—
Other	1,713,642		1,713,642		—		—
Long-Term Investments:
Asset Backed Securities	29,174,900		—		29,174,900		—
Certificate of Deposit	2,599,960		2,599,960		—		—
Corporate Bonds	27,966,498		—		27,966,498		—
Government Securities	35,738,826		—		35,738,826		—
Municipal Bonds	88,934,125		—		88,934,125		—


Total	$	551,245,939	$	358,857,782	$	192,388,157	$	—

As of December 31, 2020:


			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, 2020		(Level 1)		(Level 2)		(Level 3)
Cash & Cash Equivalents	$	423,371,036	$	423,371,036	$	—	$	—
Short-Term Investments:
Certificate of Deposit	1,516,693		1,516,693		—		—
Corporate Bonds	7,155,600		—		7,155,600		—
Government Securities	6,678,450		—		6,678,450		—
Municipal Bonds	10,284,765		—		10,284,765		—
Other	1,528,861		1,528,861		—		—
Long-Term Investments:
Asset-backed Securities	37,924,537		—		37,924,537		—
Certificate of Deposit	3,645,520		3,645,520				—
Corporate Bonds	9,024,035		—		9,024,035		—

Municipal Bonds	107,407,831		—		107,407,831		—
Total	$	608,537,328	$	430,062,110	$	178,475,218	$	—

The amortized cost, unrealized gains and losses, and market value of investment securities are shown as of June 30, 2021 and December 31, 2020:

As of June 30, 2021:


			Unrealized
	Cost		Gains		Losses		Market Value
Short-Term Investments:
Certificate of Deposit	$	1,502,822	$	10,107	$	(1,552)	$	1,511,377
Corporate Bonds	2,013,237		7,043		—		2,020,280
Government Securities	601,784		232		—		602,016
Municipal Bonds	7,926,891		24,621		—		7,951,512
Other	1,713,642		—		—		1,713,642
Long-Term Investments:
Asset Backed Securities	29,690,643		69,718		(585,461)		29,174,900
Certificate of Deposit	2,502,449		97,511		—		2,599,960
Corporate Bonds	27,724,234		362,001		(119,737)		27,966,498
Government Securities	35,656,412		90,333		(7,919)		35,738,826
Municipal Bonds	84,595,949		6,309,593		(1,971,417)		88,934,125
Total	$	193,928,063	$	6,971,159	$	(2,686,086)	$	198,213,136

As of December 31, 2020:


			Unrealized
	Cost		Gains		Losses		Market Value
Short-Term Investments:
Certificate of Deposit	$	1,502,187	$	14,506	$	—	$	1,516,693
Corporate Bonds	7,084,638		70,962		—		7,155,600
Government Securities	6,635,132		43,318		—		6,678,450
Municipal Bonds	10,160,376		124,389		—		10,284,765
Other	1,528,861		—		—		1,528,861
Long-Term Investments:
Asset-backed Securities	37,681,113		800,802		(557,378)		37,924,537
Certificate of Deposit	3,503,898		141,622		—		3,645,520
Corporate Bonds	8,595,020		429,015		—		9,024,035

Municipal Bonds	100,776,325		6,635,428		(3,922)		107,407,831

Total	$	177,467,550	$	8,260,042	$	(561,300)	$	185,166,292

Unrealized losses on investments as of June 30, 2021, are as follows:


	Aggregate Unrealized Losses		Aggregate Fair Value of Investments
Loss duration of less than one year	$	2,274,743	$	40,341,064
Loss duration of greater than one year	411,342		1,956,482
Total	$	2,686,085	$	42,297,546

Unrealized losses on investments as of December 31, 2020, are as follows:


	Aggregate Unrealized Losses		Aggregate Fair Value of Investments
Loss duration of less than one year	$	561,300	$	12,317,187
Loss duration of greater than one year	—		—
Total	$	561,300	$	12,317,187

Effective January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The guidance modifies the impairment model for available-for-sale debt securities and provides a simplified accounting model for purchased financial assets with credit deterioration since their origination. The Company utilized the guidance provided by ASC 326 to determine whether any of the available-for-sale debt securities held by the Company were impaired. No investments were considered to be impaired 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 June 30, 2021 have contractual maturities as follows:


Due within one year	$	12,085,185
Due between one and five years	42,578,597
Due over five years	141,835,712
	$	196,499,494

- 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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