Note 6 - Investment Securities - Available for Sale

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

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

Note 6.   Investment Securities - Available For Sale

Short term investments available for sale of $2,160,000 and $10,799,890 as of June 30, 2016 and December 31, 2015 consist of certificates of deposit and corporate 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:

	June 30, 2016				December 31, 2015
	Cost		Fair Value		Cost		Fair Value
Short-term investments
Certificate of deposit	$	2,160,000	$	2,160,000	$	4,800,000	$	4,798,810
Corporate debt securities		–		–		6,003,748		6,001,080
Total	$	2,160,000	$	2,160,000	$	10,803,748	$	10,799,890

	June 30, 2016				December 31, 2015
	Cost		Fair Value		Cost		Fair Value
Short-term investment maturities
Within 3 months	$	–	$	–	$	10,803,748	$	10,799,890
Between 3-12 months		2,160,000	$	2,160,000		–		–
Total	$	2,160,000	$	2,160,000	$	10,803,748	$	10,799,890

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

	Three Months Ended June 30,
Description of Securities	2016		2015
Interest and dividends accrued and paid	$	4,358	$	38,772
Accretion of investment premium		–		(21,568	)
Realized (losses) gains		–		(339	)
Investment income, net	$	4,358	$	16,865

	Six Months Ended June 30,
Description of Securities	2016			2015
Interest and dividends accrued and paid	$	23,345		$	131,974
Accretion of investment premium		(5,788	)		(98,519	)
Realized (losses) gains		(3,858	)		(210	)
Investment income, net	$	13,699		$	33,245

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 June 30, 2016. The Company has reviewed individual securities to determine whether a decline in fair value below the amortizable cost basis is other than temporary.

	June 30, 2016				December 31, 2015
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	$	2,160,000	$	–	$	240,024	$	24
Short-term investments with unrealized losses		–		–		10,559,866		(3,882	)
Total	$	2,160,000	$	–	$	10,799,890	$	(3,858	)

The following table presents the change, by component, in accumulated other comprehensive loss for the first six months of 2016.  

Accumulated Other Comprehensive Loss
Balance at January 1, 2016	$	(3,858	)
Realized loss reclassified from other accumulated comprehensive loss		3,858
Other comprehensive gain, net		3,858
Balance at June 30, 2016	$	–