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Note 2 - Cash, Cash Equivalents, and Investments
6 Months Ended
Jun. 30, 2022
Notes to Financial Statements  
Cash, Cash Equivalents, and Marketable Securities [Text Block]

Note 2:    Cash, Cash Equivalents, and Investments

 

The Company’s investments in debt securities are classified as held-to-maturity and are recorded at amortized cost, and its investments in money market funds are classified as cash equivalents. The following table shows the Company’s cash, available-for-sale securities, and investment securities by major security type as of  June 30, 2022, and  December 31, 2021:

 

  

June 30, 2022 (Unaudited)

 
         

Gross

  

Gross

     
  

Level

      

Unrealized

  

Unrealized

     
  (1)  

Fair Value

  

Holding Gains

  

Holding Losses

  

Adjusted Cost

 

Cash and Cash Equivalents

                   

Cash

    $1,521,964  $  $  $1,521,964 

Money Market Funds

 1   7,954,448         7,954,448 

Subtotal

     9,476,412         9,476,412 

Short-Term Investment Securities (2)

                   

Corporate Bonds (3)

 2   6,111,831      (52,002)  6,163,833 

Total

    $15,588,243  $  $(52,002) $15,640,245 

 

 

  

December 31, 2021 (Audited)

 
         

Gross

  

Gross

     
  

Level

      

Unrealized

  

Unrealized

     
  (1)  

Fair Value

  

Holding Gains

  

Holding Losses

  

Adjusted Cost

 

Cash and Cash Equivalents

                   

Cash

    $1,377,094  $  $  $1,377,094 

Money Market Funds

 1   14,371,386         14,371,386 

Subtotal

     15,748,480         15,748,480 

Short-Term Investment Securities (2)

                   

Corporate Bonds (3)

 2   4,509,285      (2,495)  4,511,780 

Total

    $20,257,765  $  $(2,495) $20,260,260 

_________________

Notes:

(1) Definition of the three-level fair value hierarchy:

 

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities

 

Level 2 - Other inputs that are directly or indirectly observable in the markets

 

Level 3 - Inputs that are generally unobservable

(2) Short-term investment securities will mature within 12 months or less, from the applicable reporting date.

(3) The premiums paid to purchase held-to-maturity investment securities was $8,420 and $0 for the three months ended  June 30, 2022 and 2021, respectively. The premiums paid to purchase held-to-maturity investment securities was $29,270 and $283,940 for the six months ended June 30, 2022 and 2021, respectively. The premiums paid to purchase held-to-maturity investment securities were $283,940 for the year ended  December 31, 2021.

 

The Company considers the declines in market value of its investment portfolio to be temporary in nature. The Company’s investment policy requires investment securities to be investment grade and held to maturity with the primary objective to maintain a high degree of liquidity while maximizing yield. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates, and whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s cost basis. As of  June 30, 2022, the Company does not consider any of its investments to be other-than-temporarily impaired.