FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2024

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 debt and equity securities:

	September 30, 2024
	Level 1		Level 2		Level 3		Total
Equity securities	$	19,814,003	$	—	$	—	$	19,814,003
Mutual funds		12,289,041		—		—		12,289,041
Municipal bonds		679,275		—		—		679,275
	$	32,782,319	$	—	$	—	$	32,782,319

	December 31, 2023
	Level 1		Level 2		Level 3		Total
Equity securities	$	18,282,556	$	—	$	—	$	18,282,556
Mutual funds		15,656,757		—		—		15,656,757
Municipal bonds		681,900		—		—		681,900
	$	34,621,213	$	—	$	—	$	34,621,213

The investment assets are held as trading securities 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 debt and equity securities:

	September 30, 2024
			Cumulative Unrealized				Aggregate
	Cost		Gains		Losses		Fair Value
Equity securities	$	24,230,746		—		(4,416,743)		19,814,003
Mutual funds		12,177,576		111,465		—		12,289,041
Municipal bonds		636,187		43,088		—		679,275
	$	37,044,509	$	154,553	$	(4,416,743)	$	32,782,319

	December 31, 2023
			Cumulative Unrealized				Aggregate
	Cost		Gains		Losses		Fair Value
Equity securities	$	24,074,112	$	—	$	(5,791,556)	$	18,282,556
Mutual funds		15,576,527		80,230		—		15,656,757
Municipal bonds		635,425		46,475		—		681,900
	$	40,286,064	$	126,705	$	(5,791,556)	$	34,621,213

Unrealized losses on investments in debt and equity securities were $1.4 million and $(11.3) million for the nine months ended September 30, 2024 and 2023, respectively.