Marketable Securities:

The Company’s marketable securities consist of investments in equity securities. Dividends and interest income are accrued as earned. Realized gains and losses are determined on a specific identification basis. The Company reviews marketable securities for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. Prior to August 1, 2018, unrealized gains and losses resulting from changes in the fair value of these securities were included in “other comprehensive income”. Effective August 1, 2018, the changes in the fair value of these securities are recognized in current period earnings in accordance with ASC 825.

The Company follows GAAP which establishes a fair value hierarchy that prioritizes the valuation techniques and creates the following three broad levels, with Level 1 valuation being the highest priority:

Level 1 valuation inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date (e.g., equity securities traded on the New York Stock Exchange).

Level 2 valuation inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted market prices of similar assets or liabilities in active markets, or quoted market prices for identical or similar assets or liabilities in markets that are not active).

Level 3 valuation inputs are unobservable (e.g., an entity’s own data) and should be used to measure fair value to the extent that observable inputs are not available.

Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis. There have been no changes in the methodologies used at April 30, 2019 and July 31, 2018.

Equity securities are valued at the closing price reported on the active market on which the individual securities are traded that the Company has access to.

Mutual funds are valued at the daily closing price as reported by the fund. Mutual funds held by the Company are open-end mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value (“NAV”) and to transact at that price. The mutual funds held by the Company are deemed to be actively traded.

In accordance with the provisions of Fair Value Measurements, the following are the Company's financial assets measured on a recurring basis presented at fair value.

Fair value measurements at reporting date

	Total								Total
	April 30,								July 31,
Description	2019		Level 1		Level 2		Level 3		2018		Level 1		Level 2		Level 3
Assets:
Marketable securities	$	3,427,716	$	3,427,716	$	–	$	–	$	3,141,828	$	3,141,828	$	–	$	–

As of April 30, 2019 and July 31, 2018, the Company's marketable securities were classified as follows:

	April 30, 2019								July 31, 2018
			Gross		Gross						Gross		Gross
			Unrealized		Unrealized		Fair				Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
Noncurrent:
Mutual funds	$	844,106	$	233,546	$	–	$	1,077,652	$	774,602	$	237,149	$	–	$	1,011,751
Equity securities		1,640,264		709,800		–		2,350,064		1,567,089		562,988		–		2,130,077
	$	2,484,370	$	943,346	$	–	$	3,427,716	$	2,341,691	$	800,137	$	–	$	3,141,828

Investment income consists of the following:

	Three Months Ended				Nine Months Ended
	April 30				April 30
	2019		2018		2019		2018
Gain (loss) on sale of marketable securities	$	–	$	912	$	46,415	$	(805	)
Interest income		15,025		5,737		42,466		12,488
Dividend income		12,352		9,260		95,607		78,448
Total	$	27,377	$	15,909	$	184,488	$	90,131