Fair Value of Financial Instruments

3 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Fair Value of Financial Instruments

The FASB defines the fair value of financial instruments as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements do not include transaction costs.

The accounting guidance also expands the disclosure requirements around fair value and establishes a fair value hierarchy of valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels, which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are described below:

Level 1: Inputs that are based upon unadjusted quoted prices for identical instruments traded in active markets.

Level 2: Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly.

Level 3: Prices or valuation that require inputs that are both significant to the fair value measurement and unobservable.

The following tables set forth by level within the fair value hierarchy the Company's financial assets that were accounted for at fair value on a recurring basis at September 30, 2011 and June 30, 2011 according to the valuation techniques the Company used to determine their fair values:

	Fair Value Measurements Using Inputs Considered as
	Fair Value at September 30, 2011		Level 1		Level 2		Level 3
Cash and cash equivalents	$	783,100	$	783,100	$	—	$	—
Available for sale securities		695,400		695,400		—		—
Total	$	1,478,500	$	1,478,500	$	—	$	—

	Fair Value Measurements Using Inputs Considered as
	Fair Value at June 30, 2011		Level 1		Level 2		Level 3
Cash and cash equivalents	$	907,800	$	907,800	$	—	$	—
Available for sale securities		693,400		693,400		—		—
Total	$	1,601,200	$	1,601,200	$	—	$	—

Investments in marketable securities classified as available-for-sale by security type at September 30, 2011 and June 30, 2011 consisted of the following:

	Cost		Fair Value		Unrealized Holding Gain (Loss)
At September 30, 2011:
Available for sale:
Equity securities	$	7,800	$	13,000	$	5,200
Mutual funds		710,000		682,400		(27,600	)
	$	717,800	$	695,400	$	(22,400	)
		Cost		Fair Value		Unrealized Holding Gain (Loss)
At June 30, 2011:
Available for sale:
Equity securities	$	7,800	$	13,300	$	5,500
Mutual funds		707,100		680,100		(27,000	)
	$	714,900	$	693,400	$	(21,500	)