NOTE B - MARKETABLE SECURITIES

Marketable securities include investments in fixed income and equity mutual funds and U.S. Government securities with maturities greater than

months, which are reported at their fair values.

The Company's U.S. Treasury Bills are considered debt securities and unrealized gains and losses, if any, are reported in other comprehensive income. The U.S. Treasury Bills are considered held to maturity securities, as they are purchased directly from the U.S. Government and are unable to be sold before the maturity date.

The disaggregated net gains and losses on the marketable securities recognized in the income statement for the years ended

December 31, 2020

and

2019

are as follows:

	Years ended December 31,
	2020			2019
Net gains recognized during the year on marketable securities	$	298,585		$	431,076
Less: Net gains recognized during the year on marketable securities sold during the period		(415,595	)		(262,399	)
Unrealized (losses) gains recognized during the reporting year on marketable securities still held at the reporting date	$	(117,010	)	$	168,677

The fair values of the Company's marketable securities are determined in accordance with US GAAP, with fair value being defined as the amount 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. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the Company utilizes the

three

-tier value hierarchy, as prescribed by US GAAP, which prioritizes the inputs used in measuring fair value as follows:

•

Level

- inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

•

Level

- inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

•

Level

– inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company's marketable equity securities, which are considered available-for-sale securities, are re-measured to fair value on a recurring basis and are valued using Level

inputs using quoted prices (unadjusted) for identical assets in active markets. The following tables summarize the Company's investments:

December 31, 2020

Equity Securities	Cost		Fair Value		Unrealized Gain
Fixed income mutual funds	$	6,703,107	$	6,907,270	$	204,163
Equity and other mutual funds		584,044		684,111		100,067
Total equity securities		7,287,151		7,591,381		304,230
Total marketable securities	$	7,287,151	$	7,591,381	$	304,230

December 31, 2019

Debt Securities
U.S Treasury Bills (maturities of greater than three months up to one year)	$	3,481,625	$	3,481,625	$	---
Total debt securities		3,481,625		3,481,625		---

Equity Securities
Fixed income mutual funds	$	1,940,071	$	2,122,157	$	182,086
Equity and other mutual funds		1,024,580		1,263,734		239,154
Total equity securities		2,964,651		3,385,891		421,240
Total marketable securities	$	6,446,276	$	6,867,516	$	421,240

Investment income is recognized when earned and consists principally of interest income from fixed income mutual funds and U.S. Treasury Bills and dividend income from equity and other mutual funds. Realized gains and losses on sales of investments are determined on a specific identification basis.

Proceeds from the sale and redemption of marketable securities amounted to

$6,371,128

for the year ended

December 31, 2020,

which included realized gains of

$415,595.

Proceeds from the sale and redemption of marketable securities for the year ended

December 31, 2019

amounted to

$15,964,917,

which included realized gains of

$262,399.