Note 9 - Fair Value Measurements

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note

9

–

FAIR VALUE MEASUREMENTS

Inputs used to measure fair value are organized into a fair value hierarchy based on how observable the inputs are. Level

1

inputs consist of quoted prices in active markets for identical assets. Level

2

inputs are inputs, other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level

3

inputs are unobservable inputs. During

2019

and

2018

there were

no

transfers into or out of Level

2

or Level

3.

Recurring Fair Value Measurements

Certain of the Company’s assets are reported at fair value in the accompanying balance sheets on a recurring basis. The Company determined the fair value of the available-for-sale debt securities using quoted market prices for securities with similar maturity dates and interest rates. At

December 

31,

2019

and

2018,

the Company’s assets reported at fair value on a recurring basis are summarized as follows:

	2019
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Financial Assets:
Available-for-Sale Debt Securities –
U.S. Treasury Bills Maturing in 2020	$	---	$	18,517,910	$	---
Equity Securities –
Domestic Equities		364,171		---		---
International Equities		110,629		---		---
Others		70,275		---		---
	$	545,075	$	18,517,910	$	---

	2018
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Financial Assets:
Available-for-Sale Debt Securities –
U.S. Treasury Bills Maturing in 2019	$	---	$	16,249,414	$	---
Equity Securities –
Domestic Equities		259,843		---		---
International Equities		179,083		---		---
Others		15,132		---		---
	$	454,058	$	16,249,414	$	---

Non-recurring Fair Value Measurements

The Company’s asset retirement obligation incurred annually represents non-recurring fair value liabilities. The fair value of the non-financial liabilities incurred was

$44,994

in

2019

and

$11,386

in

2018

and was calculated using Level

3

inputs. See Note

2

for more information about this liability and the inputs used for calculating fair value.

The fair value of oil and gas properties used in estimating impairment losses of

$912,045

for

2019

and

$832,651

for

2018

were based on Level

3

inputs. See Note

10

for the procedure used for calculating these expenses.

Fair Value of Financial Instruments

The Company’s financial instruments consist primarily of cash and cash equivalents, trade and notes receivables, marketable securities, trade payables, and dividends payable. As of

December 

31,

2019

and

2018,

the historical cost of cash and cash equivalents, trade and notes receivables, trade payables, and dividends payable are considered to be representative of their respective fair values due to the short-term maturities of these items.