Cash and Cash Equivalents and Investments

Cash and Cash Equivalents

The Company considers cash and cash equivalents as amounts on hand, on deposit in financial institutions and highly liquid investments purchased with an original maturity of three months or less. Money market mutual funds consist of funds deposited into mutual funds investing in U.S. government and non-government obligations. The Company maintains cash and cash equivalents and money market mutual funds with various domestic and foreign financial institutions within the ordinary course of business, which at times may exceed jurisdictional insurance limits.

Investments in Debt Securities

Investments in debt securities includes certificates of deposit purchased with an original maturity greater than three months which are deposited in various U.S. financial institutions and are fully insured by the Federal Deposit Insurance Corporation. The Company intends to hold the certificates of deposit to maturity and accordingly these investments are carried at amortized cost. Investments in debt securities with maturities greater than one year from the balance sheet date are classified as a long-term asset.

Investment in Equity Securities

In 2013 and 2014, the Company purchased an aggregate 2,802,277 shares of Comvita Limited (“Comvita”) common stock for $8,483,693. In conjunction with this investment, the Company's chairman and chief executive officer was named to Comvita's board of directors. At March 31, 2015, the 2,802,277 shares of Comvita common stock owned by the Company represented 7.1% of Comvita's outstanding shares.

The investment in Comvita common stock is classified as an available-for-sale investment carried at fair value, with any unrealized gains and losses associated with the investment included in accumulated other comprehensive income and any dividends received recorded in other income. The investment is classified as a long term asset. As of March 31, 2015, the fair value of the Comvita common stock was $8,437,096 as determined by the quoted market price of the outstanding stock on the New Zealand stock exchange. The cumulative decrease in fair value from cost of $46,597 has been recorded in accumulated other comprehensive income, net of taxes.

Cash and cash equivalents and investments at March 31, 2015 and December 31, 2014 consisted of the following:

	March 31, 2015		December 31, 2014

Cash	$	12,506,936	$	7,665,958
Money market mutual funds		3,990,789		11,730,887
Cash and cash equivalents		16,497,725		19,396,845
Investments in debt securities		50,000,000		55,996,000
Investment in equity securities		8,437,096		8,422,790
Total investments		58,437,096		64,418,790

Total cash and cash equivalents and investments	$	74,934,821	$	83,815,635

The following table provides fair value information as of March 31, 2015:

			Fair Value Measurements, Using
	Total carrying value as of March 31, 2015		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)

Cash and cash equivalents	$	16,497,725	$	16,497,725	$	-	$	-
Investments in debt securities		50,000,000		50,000,000		-		-
Investment in equity securities		8,437,096		8,437,096		-		-

Total investments		58,437,096		58,437,096		-		-

Total	$	74,934,821	$	74,934,821	$	-	$	-

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets. Level 2 inputs are quoted prices for similar assets in active markets or inputs that are observable for the asset, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on management's own assumptions used to measure assets at fair value. A financial asset's classification is determined based on the lowest level input that is significant to the fair value measurement.