Investment Securities

3 Months Ended

Sep. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Note 2. Investment Securities

ASC 820 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

§ Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

§ Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

§ Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The carrying amounts of financial instruments, including cash and cash equivalents, short term investment securities, accounts receivable, accounts payable and accrued expenses, approximated fair value as of September 30, 2018 and June 30, 2018 because of the immediate or short-term maturity of these financial instruments.

Investment securities at September 30, 2018 and June 30, 2018 consist of certificates of deposit and municipal bonds which are classified as available-for-sale securities and have been determined to be level 1 assets. The cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale securities by major security type at September 30, 2018 and June 30, 2018 are as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
September 30, 2018
Certificates of deposit	$	4,966,000	$	—	$	—		$	4,966,000
Municipal bonds		2,482,635		1,020		(4,363	)		2,479,292
Total investment securities	$	7,448,635	$	1,020	$	(4,363	)	$	7,445,292
June 30, 2018
Certificates of deposit	$	10,440,000	$	—	$	—		$	10,440,000
Municipal bonds		1,085,754		635		(5,683	)		1,080,706
Total investment securities	$	11,525,754	$	635	$	(5,683	)	$	11,520,706

The portfolio is diversified and highly liquid and primarily consists of investment grade fixed income instruments. At September 30, 2018, the Company did not have any investments in individual securities that have been in a continuous loss position considered to be other than temporary.

As of September 30, 2018 and June 30, 2018, the remaining contractual maturities of available-for-sale securities were as follows:

	Years to Maturity
	Less than		One to
	One Year		Five Years		Total
September 30, 2018
Available-for-sale	$	5,169,381	$	2,275,911	$	7,445,292
June 30, 2018
Available-for-sale	$	10,967,300	$	553,406	$	11,520,706