8.	Financial Instruments

Certain financial assets and liabilities are accounted for at fair value, which is defined as the price 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. The following fair value hierarchy prioritizes the inputs used to measure fair value:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value from the perspective of a market participant.

The following table represents cash and the available-for-sale securities adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or investment securities as of June 30, 2015 and December 31, 2014:

	June 30, 2015
	Cost		Unrealized Gains		Unrealized Losses		Accrued Interest		Estimated Fair Value		Cash & Cash Equivalents		Investment Securities

Cash	$	36,055,000	$	-	$	-	$	-	$	36,055,000	$	36,055,000	$	-

Level 1:
Money Market Accounts		1,090,000		-		-		-		1,090,000		1,090,000		-
Mutual Funds		9,748,000		81,000		(156,000)		-		9,673,000		-		9,673,000
Corporate Equity Securities		3,855,000		661,000		(85,000)		-		4,431,000		-		4,431,000
Government & Agency Securities		4,878,000		40,000		(11,000)		14,000		4,921,000		-		4,921,000
		19,571,000		782,000		(252,000)		14,000		20,115,000		1,090,000		19,025,000

Level 2:
Municipal Bonds		3,242,000		57,000		(6,000)		23,000		3,316,000		-		3,316,000
Corporate Bonds		5,508,000		25,000		(24,000)		44,000		5,553,000		-		5,553,000
		8,750,000		82,000		(30,000)		67,000		8,869,000		-		8,869,000

Total	$	64,376,000	$	864,000	$	(282,000)	$	81,000	$	65,039,000	$	37,145,000	$	27,894,000

	December 31, 2014
	Cost		Unrealized Gains		Unrealized Losses		Accrued Interest		Estimated Fair Value		Cash & Cash Equivalents		Investment Securities

Cash	$	23,894,000	$	-	$	-	$	-	$	23,894,000	$	23,894,000	$	-

Level 1:
Money Market Accounts		565,000		-		-		-		565,000		565,000		-
Mutual Funds		10,733,000		63,000		(129,000)		-		10,667,000		-		10,667,000
Corporate Equity Securities		3,408,000		695,000		(31,000)		-		4,072,000		-		4,072,000
Government & Agency Securities		4,559,000		49,000		(5,000)		15,000		4,618,000		-		4,618,000
		19,265,000		807,000		(165,000)		15,000		19,922,000		565,000		19,357,000

Level 2:
Municipal Bonds		3,652,000		78,000		(7,000)		28,000		3,751,000		-		3,751,000
Corporate Bonds		5,022,000		29,000		(12,000)		38,000		5,077,000		-		5,077,000
		8,674,000		107,000		(19,000)		66,000		8,828,000		-		8,828,000

Total	$	51,833,000	$	914,000	$	(184,000)	$	81,000	$	52,644,000	$	24,459,000	$	28,185,000

The Company had realized gains of $16,000 and $45,000 for the three months ended June 30, 2015 and 2014, respectively and $134,000 and $233,000 for the six months ended June 30, 2015 and 2014, respectively.