5. Fair Value of Financial Instruments

6 Months Ended

Dec. 31, 2015

Investments, All Other Investments [Abstract]

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 December 31, 2015 and June 30, 2015 according to the valuation techniques the Company used to determine their fair values:

	Fair Value Measurements Using Inputs Considered as
Assets:
		Fair Value at December 31, 2015		Level 1		Level 2		Level 3
Cash and cash equivalents	$	666,900	$	666,900	$	—	$	—
Restricted Cash		300,000		300,000
Available for sale securities		278,200		278,200		—		—
Total	$	1,245,100	$	1,245,100	$	—	$	—
Liabilities:
Contingent consideration	$	266,200	$	—	$	—	$	266,200

	Fair Value Measurements Using Inputs Considered as
Assets:
		Fair Value at June 30, 2015		Level 1		Level 2		Level 3
Cash and cash equivalents	$	482,000	$	482,000	$	—	$	—
Restricted Cash		300,000		300,000
Available for sale securities		281,800		281,800		—		—
Total	$	1,063,800	$	1,063,800	$	—	$	—
Liabilities:
Contingent consideration	$	367,100	$	—	$	—	$	367,100

Investments in marketable securities classified as available-for-sale by security type at December 31, 2015 and June 30, 2015 consisted of the following:

	Cost		Fair Value		Unrealized Holding Gain (Loss)
At December 31, 2015:
Available for sale:
Equity securities	$	29,300	$	38,200	$	8,900
Mutual funds		257,100		240,000		(17,100	)
	$	286,400	$	278,200	$	(8,200	)

	Cost		Fair Value		Unrealized Holding Gain (Loss)
At June 30, 2015:
Available for sale:
Equity securities	$	29,300	$	35,800	$	6,500
Mutual funds		255,800		246,000		(9,800	)
	$	285,100	$	281,800	$	(3,300	)