Note 3 - Short-term Investments Available for Sale

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

3. SHORT TERM INVESTMENTS AVAILABLE FOR SALE

Short term investments available for sale of $24,173,406 and $37,156,381 as of December 31, 2014 and 2013, respectively, consist of money market funds, commercial paper, corporate debt securities, and government agency debt securities. They are valued at estimated fair value, with unrealized gains and losses reported as a separate component of stockholders’ equity in Accumulated Other Comprehensive Income.

Securities available for sale are evaluated periodically to determine whether a decline in their value is other than temporary.  The term “other than temporary” is not intended to indicate a permanent decline in value.  Rather, it means that the prospects for near term recovery of value are not necessarily favorable, or that there is a lack of evidence to support fair values equal to, or greater than, the carrying value of the security.  Management reviews criteria such as the magnitude and duration of the decline, as well as the reasons for the decline, to predict whether the loss in value is other than temporary.  Once a decline in value is determined to be other than temporary, the value of the security is reduced and a corresponding charge to earnings is recognized.  

A summary of the cost, fair value and maturities of the Company’s short-term investments is as follows:

	December 31, 2014				December 31, 2013
	Cost		Fair Value		Cost		Fair Value
Short-term investments
Certificate of deposit	$	5,000,000	$	4,996,568	$	3,840,000	$	3,835,083
Bonds- corporate issuances		19,189,438		19,176,838		33,360,576		33,321,298
Total short-term investments	$	24,189,438	$	24,173,406	$	37,200,576	$	37,156,381

	December 31, 2014				December 31, 2013
	Cost		Fair Value		Cost		Fair Value
Short-term investment maturities
Within 3 months	$	16,881,490	$	16,872,158	$	7,799,032	$	7,797,689
Between 3-12 months		7,307,948		7,301,248		29,401,544		29,358,692
Total	$	24,189,438	$	24,173,406	$	37,200,576	$	37,156,381

Investment income, which includes net realized losses on sales of available for sale securities and investment income interest and dividends, is summarized as follows:

	2014			2013			2012
Interest and dividends accrued and paid	$	1,015,182		$	748,947		$	712,947
Accretion of investment premium		(913,261	)		(669,344	)		(652,960	)
Losses on investment maturity and sales, net		(24,727	)		(92,346	)		(7,580	)
	$	77,194		$	(12,744	)	$	52,322

In 2009, the Company recorded an equity investment of approximately $108,000 for stock received as settlement of a transition agreement the Company previously entered into. The $108,000 asset value reflected the estimated net realizable value of 903,112 shares of Medifocus Inc. at the time of settlement. As of December 31, 2011, this entire amount had been reduced to $0 and was charged as an unrealized loss in other comprehensive loss. During the fourth quarter of 2012, the Company sold this stock for approximately $138,000, thereby recording a realized gain of approximately $30,000 in investment income and reversing the cumulative unrealized loss of $108,000 in other comprehensive loss.

The following table shows the Company’s investment securities gross unrealized losses and fair value by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2014 and 2013. The Company has reviewed individual securities to determine whether a decline in fair value below the amortizable cost basis is other than temporary.

	December 31, 2014					December 31, 2013
Description of Securities	Fair Value		Unrealized Holding Gains (Losses)			Fair Value		Unrealized Holding Gains (Losses)
Available for Sale (all unrealized holding gains and losses are less than 12 months at date of measurement)
Short-term investments with unrealized gains	–		–			$	6,650,095	$	1,907
Short-term investments with unrealized losses		24,173,406		(16,032	)		30,506,286		(46,073	)
Total	$	24,173,406	$	(16,032	)	$	37,156,381	$	(44,166	)