Investments and Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Investments and Fair Value Measurements

NOTE 3 - INVESTMENTS AND FAIR VALUE MEASUREMENTS

The Company’s investments include debt securities, U.S. Treasury Notes, government and state agency bonds, corporate bonds 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 December 31, 2017 and 2018, 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 years ended December 31, 2016, 2017 and 2018, the Company reported unrealized losses, net of realized amounts, of $(5,000), $(103,000) and $(98,000), 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. All other securities are classified as long-term.

The following table summarizes the estimated fair value of investment securities designated as available for sale, classified by the contractual maturity date of the security as of December 31, 2018:

	Fair Value
Due within one year	$	394,000
Due one year through three years		1,501,000
Due after three years		2,630,000
	$	4,525,000

The cost, gross unrealized gains (losses) and fair value of available for sale securities by major security type at December 31, 2018 and 2017 were as follows:

			Unrealized		Unrealized			Fair
December 31, 2018	Cost		Gain		Loss			Value
Investments - short term
U.S. Treasury Notes	$	302,000	$	1,000		-		$	303,000
Corporate bonds and commercial paper		91,000		-		-			91,000
Total investments - short term		393,000		1,000					394,000
Investments - long term
U.S. Treasury Notes		1,569,000		-		(2,000	)		1,567,000
Government agency bonds		1,548,000		-		(23,000	)		1,525,000
Corporate bonds		1,062,000		-		(23,000	)		1,039,000
Total investments - long term		4,179,000		-		(48,000	)		4,131,000
Total investments - available for sale	$	4,572,000	$	1,000	$	(48,000	)	$	4,525,000

			Unrealized		Unrealized			Fair
December 31, 2017	Cost		Gain		Loss			Value
Investments - short term
U.S. Treasury Notes	$	1,066,000		-		(1,000	)	$	1,065,000
Corporate bonds and commercial paper		136,000		-		-			136,000
Total investments - short term		1,202,000		-		(1,000	)		1,201,000
Investments - long term
U.S. Treasury Notes		3,367,000		-		(37,000	)		3,330,000
Government agency bonds		4,279,000		-		(40,000	)		4,239,000
Corporate bonds		2,744,000		-		(35,000	)		2,709,000
Total investments - long term		10,390,000		-		(112,000	)		10,278,000
Total investments - available for sale	$	11,592,000	$	-	$	(113,000	)	$	11,479,000

The Company utilizes a fair value hierarchy 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 participant assumptions.

At December 31, 2017 and 2018, the Company’s investments described above are classified as Level 1 for fair value measurement.