Note 14- Investments and Fair Value

9 Months Ended

Sep. 30, 2018

Notes

Note 14- Investments and Fair Value

Note 14 – Investments and fair value

We account for our financial assets in accordance with ASC 820, Fair Value Measurement. This standard defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The fair value measurement disclosures are grouped into three levels based on valuation factors: Level 1 represents assets valued at quoted prices in active markets using identical assets; Level 2 represents assets valued using significant other observable inputs, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other observable inputs; and, Level 3 represents assets valued using significant unobservable inputs.

The hierarchy of Level 1, Level 2 and Level 3 Assets are listed as following:

		Fair Value Measurement Using
		Unadjusted Quoted Market Prices		Quoted Prices for Identical or Similar Assets in Active Markets		Significant Unobservable Inputs		Significant Unobservable Inputs
		(Level 1)		(Level 2)		(Level 3)		(Level 3)
		Investment in Securities				Investment in Common Stock Warrants		Other Equity Investments
Balance at December 31, 2016	$	-	$	-	$	-	$	55,943
Total gains or losses
Included in earnings (or changes in net assets)		(128,623)		-		-		-
Purchases, issuances, sales, and settlements
Purchases		1,071,902		-		-		107,771
Issuances		-		-		-		-
Sales		(754,644)		-		-		-
Settlements		-		-		-		-
Balance at December 31, 2017		188,635		-		-		163,714
Total gains or losses
Included in earnings (or changes in net assets)		269,754		-		-		86,306
Purchases, issuances, sales, and settlements
Purchases		236,272		-		5,669		86,256
Issuances		-		-		-		8,351
Sales		-		-		-		(108,999)
Settlements		-		-		-		-
Balance at September 30, 2018	$	694,445	$	-	$	5,669	$	235,628

The amortized costs, gross unrealized holding gains and losses, and fair values of the Company’s investment securities classified as equity securities, at fair value, at September 30, 2018 consists of the following:

Type		Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses		Fair Values
NASDAQ listed company stock	$	130,997	$	40,730	$	-	$	172,740
OTCQB listed company stock		259,088		228,818		-		521,715
	$	390,085	$	99,962	$	-	$	694,455

The portion of unrealized gains and losses for the period related to equity securities still held at the reporting date is calculated as follows:

		Three Months Ended September 30,				Nine Months Ended September 30,
		2018		2017		2018		2017
Net gains and losses recognized during the period on equity securities	$	204,408	$	(163,445)	$	322,605	$	(163,445)
Less: Net gains (losses) recognized during the period on equity securities sold during the period		-		-		-		-
Unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date	$	204,408	$	(163,445)	$	322,605	$	(163,445)