Fair Value Measurements

9 Months Ended

Sep. 30, 2011

Fair Value Measurements

FAIR VALUE MEASUREMENTS

NOTE 7 - FAIR VALUE MEASUREMENTS:

The Company adopted FASB's ASC 820 "Fair Value Measurements" as it applies to its financial instruments, and FASB's ASC 820 "The Fair Value Option for Financial Assets and Financial Liabilities" (including an amendment which defines fair value), which outline a framework for measuring fair value and detail the required disclosures about fair value measurements, which permits companies to irrevocably choose to measure certain financial instruments and other items at fair value. ASC 820 also establishes presentation and disclosure requirements designed to facilitate comparison between entities that choose different measurement attributes for similar types of assets and liabilities.

Under ASC 820, fair value 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 in the principal or most advantageous market. ASC 820 establishes a hierarchy in determining the fair value of an asset or liability. The fair value hierarchy has three levels of inputs, both observable and unobservable. ASC 820 requires the utilization of the lowest possible level of input to determine fair value. Level 1 inputs include quoted market prices in an active market for identical assets or liabilities. Level 2 inputs are market data, other than Level 1, that are observable either directly or indirectly. Level 2 inputs include quoted market prices for similar assets or liabilities, quoted market prices in an inactive market, and other observable information that can be corroborated by market data. Level 3 inputs are unobservable and corroborated by little or no market data.

Except for those assets and liabilities which are required by authoritative accounting guidance to be recorded at fair value in the Company's balance sheets, the Company has elected not to record any other assets or liabilities at fair value, as permitted by ASC 820. No events occurred during the three months ended November 30, 2011 which would require adjustment to the recognized balances of assets or liabilities which are recorded at fair value on a nonrecurring basis.

The Company determines fair values for its investment assets as follows:

Cash equivalents at fair value — the Company's cash equivalents, at fair value, consist of money market funds — marked to market. The Company's money market funds are classified within Level 1 of the fair value hierarchy since they are valued using quoted market prices from an exchange.

The following table provides information on those assets and liabilities measured at fair value on a recurring basis.

	Carrying AmountIn Balance SheetSeptember 30, 2011		Fair ValueSeptember 30, 2011		Fair Value Measurement Using (unaudited)
	(unaudited)		(unaudited)		Level 1		Level 2		Level 3
Assets:
Money Market Funds	$	1,490,000	$	1,490,000	$	1,490,000	$	—	$	—

	Carrying AmountIn Balance SheetDecember 31,		Fair ValueDecember 31,		Fair Value Measurement Using
	2010		2010		Level 1		Level 2		Level 3
Assets:
Money Market Funds	$	1,570,000	$	1,570,000	$	1,570,000	$	—	$	—