Marketable Securities

3 Months Ended

Jun. 30, 2013

Marketable Securities [Abstract]

Marketable Securities

NOTE 5. MARKETABLE SECURITIES
     Marketable securities with remaining maturities less than one year are classified as short-term, and those with remaining maturities greater than one year are classified as long-term. The fair value of our marketable securities as of June 30, 2013, by maturity, were as follows:

Total		<1 Year		1–3 Years		3–5 Years
$	85,265,793	$	9,913,371	$	29,778,640	$	45,573,782

 
     As of June 30 and March 31, 2013, our marketable securities were as follows:
 

	As of June 30, 2013									As of March 31, 2013
	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value		Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Corporate bonds	$	78,658,107	$	1,656,598	$	(579,831	)	$	79,734,874	$	72,923,502	$	2,378,845	$	(4,187	)	$	75,298,160
Municipal bonds	5,504,040		64,125		(37,246		)	5,530,919		7,381,223		81,058		(9,155		)	7,453,126
Total	$	84,162,147	$	1,720,723	$	(617,077	)	$	85,265,793	$	80,304,725	$	2,459,903	$	(13,342	)	$	82,751,286

 
     The decrease in fair market value of municipal bonds as of June 30, 2013 compared to March 31, 2013 was primarily due to the maturation of two municipal bonds. The increase in fair market value of corporate bonds was primarily due to purchases of corporate bonds during the quarter ended June 30, 2013.

     The following table shows the gross unrealized losses and fair value of our investments with unrealized losses, aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position as of June 30 and March 31, 2013:
 

		Less Than 12 Months					12 Months or Greater					Total
		Fair Market Value		Gross Unrealized Losses			Fair Market Value		Gross Unrealized Losses			Fair Market Value		Gross Unrealized Losses
As of June 30, 2013
	Corporate bonds	$	26,372,753	$	(579,831	)	$	-	$	-		$	26,372,753	$	(579,831	)
	Municipal bonds	1,488,366		(26,350		)	441,804		(10,896		)	1,930,170		(37,246		)
	Total	$	27,861,119	$	(606,181	)	$	441,804	$	(10,896	)	$	28,302,923	$	(617,077	)
As of March 31, 2013
	Corporate bonds	$	1,171,976	$	(4,187	)	$	-	$	-		$	1,171,976	$	(4,187	)
	Municipal bonds	508,607		(9,155		)	-		-			508,607		(9,155		)
	Total	$	1,680,583	$	(13,342	)	$	-	$	-		$	1,680,583	$	(13,342	)

 
     Gross unrealized losses totaled $617,077 as of June 30, 2013, and were attributed to 10 corporate bonds and three municipal bonds out of a portfolio of 43 bonds. The gross unrealized losses were due to market-price decreases and rating downgrades after the bonds were purchased. A substantial majority of the bonds we held were rated by Moody's or Standard and Poor's and had investment-grade credit ratings.

     For each bond with an unrealized loss, we expect to recover the entire cost basis of each security based on our consideration of factors including their credit ratings, the underlying ratings of insured bonds, and historical default rates for securities of comparable credit rating. One municipal bond, with a fair market value of $441,804, had been in a continuous unrealized loss position for 12 months or greater. For this security, we also considered the severity of the unrealized loss, which was $10,896, or 2.4% of its adjusted cost. Because we expect to recover the entire cost basis of each of the securities, and because we do not intend to sell the securities and it is not more likely than not that we will be required to sell the securities before recovery of the cost basis, which may be maturity, we did not consider any of our marketable securities to be other-than-temporarily impaired at June 30, 2013.