Investments

9 Months Ended

Sep. 30, 2016

Investments, Fair Value Disclosure [Abstract]

Investments

NOTE 4 - INVESTMENTS

The Company’s investments include debt securities, U.S. Treasury Notes, government and state agency bonds, corporate bonds, common stock and commercial paper, which are classified as either available for sale, held to maturity or trading, depending on management’s investment intentions relating to these securities. As of September 30, 2015 and 2016, all of the Company’s investments are classified as available for sale. Available for sale securities are measured at fair value based on quoted market values of the securities, with the unrealized gain and (losses) reported as comprehensive income or (loss). For the three- and nine-month periods ended September 30, 2015, the Company reported unrealized losses of $(5,000) and $(20,000), respectively, and for the three- and nine-month periods ended September 30, 2016, the Company reported unrealized gains of $4,000 and $8,000, respectively, on available for sale securities in total comprehensive loss. Realized gains and losses from the sale of available for sale securities are determined on a specific-identification basis. The Company has classified as short-term those securities that mature within one year and common stock. All other securities are classified as long-term.

The following table summarizes the estimated fair value of investment in debt securities designated as available for sale classified by the contractual maturity date of the security as of September 30, 2016:

	Fair Value
Due within one year	$	155,000
Due one year through three years		1,225,000
Due after three years		183,000
	$	1,563,000

The cost, gross unrealized gains (losses) and fair value of available for sale securities by major security types as of December 31, 2015 and September 30, 2016 are as follows:

			Unrealized		Unrealized		Fair
September 30, 2016	Cost		Gain		Loss		Value
Investments - short term
Available for sale
U.S. Treasury Notes	$	80,000		—		—	$	80,000
Government agency bonds		50,000		—		—		50,000
Corporate bonds and commercial paper		25,000		—		—		25,000
Common stock		49,000		2,000		—		51,000
Total investments - short term		204,000		2,000		—		206,000
Investments - long term
Available for sale
U.S. Treasury Notes		944,000		4,000		—		948,000
Government agency bonds		100,000		—		—		100,000
Corporate bonds and commercial paper		358,000		2,000		—		360,000
Total investments - long term		1,402,000		6,000		—		1,408,000
Total investments	$	1,606,000	$	8,000	$	—	$	1,614,000

			Unrealized		Unrealized			Fair
December 31, 2015	Cost		Gain		Loss			Value
Investments - short term
Available for sale
Corporate bonds and commercial paper	$	101,000		—		—		$	101,000
U.S. Treasury Notes		100,000		—		—			100,000
Common stock		49,000		9,000		—			58,000
Total investments - short term		250,000		9,000		—			259,000
Marketable securities - long term
Available for sale
U.S. Treasury Notes		915,000		—		(6,000	)		909,000
Government agency bonds		150,000		—		(1,000	)		149,000
Corporate bonds and commercial paper		283,000		—		(2,000	)		281,000
Total investments - long term		1,348,000		—		(9,000	)		1,339,000
Total investments	$	1,598,000	$	9,000	$	(9,000	)	$	1,598,000

The Company utilizes a fair value hiearchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those levels:

● Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

● Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

● Level 3: Unobservable inputs that reflect the reporting entity’s estimates of market participants’ assumptions.

As of December 31, 2015 and September 30, 2016, all of the Company’s investments are classified as Level 1 fair value measurements.