Note 2 - Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2011

Fair Value Disclosures [Text Block]

Note 2.  Fair Value of Financial Instruments

The inputs used to measure fair value are summarized in the three broad levels listed below:

• Level 1 — Quoted prices in active markets for identical securities;

• Level 2 — Other significant observable inputs (including quoted prices in active markets for similar securities); and

• Level 3 — Significant unobservable inputs (including the Company’s own assumptions in determining fair value of investments).

The following table sets forth the financial assets and liabilities that are measured at fair value on a recurring basis at September 30, 2011, by level within the fair value hierarchy. As required by ASC 820-10, assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	September 30, 2011		Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Money market funds	$	1,783,209	$	1,783,209	$	—	$	—
Option to purchase interest in affiliated company	$	11,364		—		—	$	11,364

Option to Purchase Interest in Affiliated Company. The Company estimated the fair value of the option to purchase the remaining interest in an affiliated company to be $11,364 and $20,657 at September 30, 2011 and December 31, 2010, respectively, using the multiple of earnings method based on a number of factors and assumptions regarding the affiliated company’s potential future revenue and projected earnings before interest, tax, depreciation and amortization (EBITDA). The increase in fair value of $8,143 in the three months ended September 30, 2011 and decrease in fair value of $9,293 in the nine months ended September 30, 2011 were recorded in the statement of operations for the respective periods.

Financial Instruments.  The carrying amount of the Company’s cash, accounts receivable, accounts payable, accrued compensation and benefits, and accrued expenses approximated their estimated fair values at September 30, 2011 and December 31, 2010 because of the short-term nature of these instruments.