Note 6 - Investment Securities - Available for Sale

3 Months Ended

Mar. 31, 2017

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

$1,680,000

as of

December

31,

2016

consisted of certificates of deposit. These were valued at estimated fair value. 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. The fair value of Company’s investment securities as of

December

31,

2016

did not have gross unrealized gains or losses.  

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

December

31,

2016

is as follows:

	December 31, 2016
Short-term investments	Cost		Fair Value
Certificate of deposit	$	1,680,000	$	1,680,000
Total	$	1,680,000	$	1,680,000

	December 31, 2016
Short-term investment maturities	Cost		Fair Value
Within 3 months	$	1,680,000	$	1,680,000
Total	$	1,680,000	$	1,680,000

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 March 31,
Description of Securities	2017		2016
Interest and dividends accrued and paid	$	1,991	$	18,987
Accretion of investment premium		–		(5,788	)
Realized losses		–		(3,858	)
Investment income, net	$	1,991	$	9,341