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FAIR VALUE OF FINANCIAL INSTRUMENTS
9 Months Ended
Sep. 30, 2022
FAIR VALUE OF FINANCIAL INSTRUMENTS  
FAIR VALUE OF FINANCIAL INSTRUMENTS

4.    FAIR VALUE OF FINANCIAL INSTRUMENTS

ASC 820, “Fair Value Measurements”, defines fair value, establishes a framework for measuring fair value and requires additional disclosures regarding certain fair value measurements.  ASC 820 establishes a three-tier hierarchy for measuring fair value, as follows:

Level 1 – quoted market prices in active markets for identical assets and liabilities

Level 2 – inputs other than quoted prices that are directly or indirectly observable

Level 3 – unobservable inputs where there is little or no market activity

The following tables summarize the values of assets designated as Investments in equity securities:

September 30, 2022

    

Level 1

    

Level 2

    

Level 3

    

Total

Equity securities

$

24,458,406

$

$

$

24,458,406

Mutual funds and exchange traded funds

1,855,968

1,855,968

$

26,314,374

$

$

$

26,314,374

December 31, 2021

    

Level 1

    

Level 2

    

Level 3

    

Total

Equity securities

$

9,112,607

$

$

$

9,112,607

Mutual funds and exchange traded funds

4,156,379

4,156,379

$

13,268,986

$

$

$

13,268,986

The Company holds high-grade ETFs, mutual funds, and individual equity stocks as investments.  These assets are readily marketable and are carried at fair value as of the date of the Condensed Balance Sheets. The Company intends to hold these assets for possible future operating requirements. The following table summarizes gross unrealized gains and losses from Investments in equity securities:

September 30, 2022

Gross Unrealized

Aggregate

    

Cost

    

Gains

    

Losses

    

Fair Value

Equity securities

$

22,866,864

$

1,591,542

$

$

24,458,406

Mutual funds and exchange traded funds

2,122,851

(266,883)

1,855,968

$

24,989,715

$

1,591,542

$

(266,883)

$

26,314,374

December 31, 2021

Gross Unrealized

Aggregate

    

Cost

    

Gains

    

Losses

    

Fair Value

Equity securities

$

6,729,245

$

2,383,362

$

$

9,112,607

Mutual funds and exchange traded funds

4,018,488

137,891

4,156,379

$

10,747,733

$

2,521,253

$

$

13,268,986

Unrealized gains (losses) on investments in equity securities were $(1.2) million and $816 thousand for the nine months ended September 30, 2022 and 2021, respectively.