NOTE

FAIR VALUE OF FINANCIAL INSTRUMENTS

Our corporate bonds and money market funds are classified as available-for-sale securities and carried at estimated fair value. Unrealized holding gains and losses are included in accumulated other comprehensive income (loss) in the statement of shareholders’ equity. Corporate bonds 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. We consider all highly-liquid investments with maturities of

three

months or less when purchased, including money market funds, to be cash equivalents. Gains and losses on marketable security transactions are reported on the specific-identification method.

The fair value of our available-for-sale securities as of

December

31,

2019

by maturity were as follows:

Total				<1 Year				1–3 Years				3–5 Years
$	72,853,414			$	21,933,123			$	33,904,811			$	17,015,480

Total available-for-sale securities represented approximately

90%

of our total assets. Marketable securities as of

December

31,

2019

had remaining maturities between

and

months.

Generally accepted accounting principles establish a framework for measuring fair value, provide a definition of fair value, and prescribe required disclosures about fair-value measurements. Generally accepted accounting principles define fair value as the price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. Generally accepted accounting principles utilize a valuation hierarchy for disclosure of fair value measurements. The categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The categories within the valuation hierarchy are described as follows:

Level

– Financial instruments with quoted prices in active markets for identical assets or liabilities.

Level

– Financial instruments with quoted prices in active markets for similar assets or liabilities. Level

fair value measurements are determined using either prices for similar instruments or inputs that are either directly or indirectly observable, such as interest rates.

Level

– Inputs to the fair value measurement are unobservable inputs or valuation techniques.

Money market funds are included on the balance sheets in “Cash and cash equivalents.” Corporate bonds are included on the balance sheets in “Marketable securities, short term” and “Marketable securities, long term.”

The following table shows the estimated fair value of assets that were accounted for at fair value on a recurring basis:

	As of December 31, 2019						As of March 31, 2019
	Level 1		Level 2		Total		Level 1		Level 2		Total
Money market funds	$	9,877,760	$	-	$	9,877,760	$	6,703,809	$	-	$	6,703,809
Corporate bonds		-		62,975,654		62,975,654		-		67,413,454		67,413,454
Total	$	9,877,760	$	62,975,654	$	72,853,414	$	6,703,809	$	67,413,454	$	74,117,263

Our available-for-sale securities as of

December

and

March

31,

2019,

aggregated into classes of securities, were as follows:

	As of December 31, 2019									As of March 31, 2019
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market funds	$	9,877,760	$	-	$	-		$	9,877,760	$	6,703,809	$	-	$	-		$	6,703,809
Corporate bonds		62,083,066		902,126		(9,538	)		62,975,654		67,519,350		315,902		(421,798	)		67,413,454
Total	$	71,960,826	$	902,126	$	(9,538	)	$	72,853,414	$	74,223,159	$	315,902	$	(421,798	)	$	74,117,263

The following table shows the gross unrealized holding losses and fair value of our available-for-sale securities with unrealized holding losses, aggregated by class of securities and length of time that individual securities had been in a continuous unrealized loss position as of

December

and

March

31,

2019.

	Less Than 12 Months					12 Months or Greater					Total
	Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses

As of December 31, 2019
Corporate bonds	$	4,169,606	$	(9,538	)	$	-	$	-		$	4,169,606	$	(9,538	)
Total	$	4,169,606	$	(9,538	)	$	-	$	-		$	4,169,606	$	(9,538	)

As of March 31, 2019
Corporate bonds	$	-	$	-		$	51,413,428	$	(421,798	)	$	51,413,428	$	(421,798	)
Total	$	-	$	-		$	51,413,428	$	(421,798	)	$	51,413,428	$	(421,798	)

We did

not

consider any of our available-for-sale securities to be impaired as of

December

31,

2019.

None

of the securities were impaired at acquisition, and subsequent declines in fair value are

not

attributed to declines in credit quality. When evaluating for impairment we assess indicators that include, but are

not

limited to, earnings performance, changes in underlying credit ratings, market conditions, bona fide offers to purchase or sell, and ability to hold until maturity. Because we believe it is more likely than

not

we will recover the cost basis of our investments, we did

not

consider any of our marketable securities to be impaired as of

December

31,

2019.