4. Fair Value of Financial Instruments

9 Months Ended

Mar. 31, 2017

Fair Value Disclosures [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 concerning 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 valuations 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 and liabilities that were accounted for at fair value on a recurring basis at March 31, 2017 and June 30, 2016 according to the valuation techniques the Company used to determine their fair values:

	Fair Value Measurements Using Inputs Considered as
Assets:
	Fair Value at March 31, 2017		Level 1		Level 2		Level 3
Cash and cash equivalents	$	1,211,300	$	1,211,300	$	—	$	—
Available for sale securities		294,000		294,000		—		—
Total	$	1,505,300	$	1,505,300	$	—	$	—
Liabilities:
Contingent consideration	$	180,200	$	—	$	—	$	180,200

		Fair Value Measurements Using Inputs Considered as
Assets:
		Fair Value at June 30, 2016		Level 1		Level 2		Level 3
Cash and cash equivalents	$	1,245,000	$	1,245,000	$	—	$	—
Available for sale securities		290,100		290,100		—		—
Total	$	1,535,100	$	1,535,100	$	—	$	—
Liabilities:
Contingent consideration	$	346,300	$	—	$	—	$	346,300

The following table sets forth an analysis of changes during the nine months ended March 31, 2017, Level 3 financial liabilities of the Company:

Beginning balance, June 30, 2016	$	346,300
Payments		(166,100	)
Ending Balance, March 31, 2017	$	180,200

Investments in marketable securities classified as available-for-sale by security type at March 31, 2017 and June 30, 2016 consisted of the following:

	Cost		Fair Value		Unrealized Holding Gain (Loss)
At March 31, 2017:
Available for sale:
Equity securities	$	37,000	$	49,500	$	12,500
Mutual funds		261,700		244,500		(17,200	)
	$	298,700	$	294,000	$	(4,700	)

		Cost		Fair Value		Unrealized Holding Gain (Loss)
At June 30, 2016:
Available for sale:
Equity securities	$	29,300	$	40,700	$	11,400
Mutual funds		259,900		249,400		(10,500	)
	$	289,200	$	290,100	$	900