FAIR VALUE OF FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2025

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:

	March 31, 2025
	Level 1		Level 2		Level 3		Total
Equity securities	$	22,174,133	$	—	$	—	$	22,174,133
Mutual funds		9,497,357		—		—		9,497,357
Municipal bonds		651,296		—		—		651,296
	$	32,322,786	$	—	$	—	$	32,322,786

	December 31, 2024
	Level 1		Level 2		Level 3		Total
Equity securities	$	29,259,826	$	—	$	—	$	29,259,826
Mutual funds		10,404,218		—		—		10,404,218
Municipal bonds		664,264		—		—		664,264
	$	40,328,308	$	—	$	—	$	40,328,308

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:

	March 31, 2025
			Cumulative Unrealized				Aggregate
	Cost		Gains		Losses		Fair Value
Equity securities	$	24,270,517		—		(2,096,384)		22,174,133
Mutual funds		9,430,600		66,757		—		9,497,357
Municipal bonds		636,712		14,584		—		651,296
	$	34,337,829	$	81,341	$	(2,096,384)	$	32,322,786

	December 31, 2024
			Cumulative Unrealized				Aggregate
	Cost		Gains		Losses		Fair Value
Equity securities	$	24,230,746	$	5,029,080	$	—	$	29,259,826
Mutual funds		10,319,644		84,574		—		10,404,218
Municipal bonds		636,449		27,815		—		664,264
	$	35,186,839	$	5,141,469	$	—	$	40,328,308

Unrealized gains (losses) on investments in debt and equity securities were $(7.2) million and $1.7 million for the three months ended March 31, 2025 and 2024, respectively.