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INVESTMENTS IN DEBT SECURITIES AVAILABLE FOR SALE
12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS IN DEBT SECURITIES AVAILABLE FOR SALE

3. INVESTMENTS IN DEBT SECURITIES AVAILABLE FOR SALE

 

Investments in debt securities available for sale with a fair value of $9,857,087 and $21,254,485 as of December 31, 2023 and 2022, respectively, consisted of U.S. Treasury securities and corporate debt securities. These investments are valued at estimated fair value, with unrealized gains and losses reported as a separate component of stockholders’ equity in accumulated other comprehensive loss.

 

The Company reviews its debt securities classified as short-term investments on a regular basis for impairment. For debt securities in unrealized loss positions, the Company determines whether any portion of the decline in fair value below the amortized cost basis is due to credit-related factors if it neither intends to sell nor anticipates that it is more likely than not that it will be required to sell prior to recovery of the amortized cost basis. The Company considers factors such as the extent to which the market value has been less than the cost, any noted failure of the issuer to make scheduled payments, changes to the rating of the security and other relevant credit-related factors in determining whether or not a credit loss exists. During fiscal 2023 and 2022, the Company did not recognize an allowance for credit-related losses on any of our investments.

 

A summary of the cost, fair value and maturities of the Company’s short-term investments is as follows:

  

   December 31, 2023   December 31, 2022 
   Cost   Fair Value   Cost   Fair Value 
Short-term investments                    
U.S. Treasury securities  $9,796,291   $9,857,087   $-   $- 
Corporate debt securities   -    -    21,227,991    21,254,485 
Total  $9,796,291   $9,857,087   $21,227,991   $21,254,485 

 

   December 31, 2023   December 31, 2022 
   Cost   Fair Value   Cost   Fair Value 
Short-term investment maturities                    
Within 3 months  $2,467,518   $2,490,775   $4,005,559   $3,994,590 
Between 3-12 months   7,328,773    7,366,312    17,222,432    17,259,895 
Total  $9,796,291   $9,857,087   $21,227,991   $21,254,485 

 

The following table shows the Company’s investment in debt securities available for sale gross unrealized gains (losses) and fair value by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023 and 2022. The Company has reviewed individual securities to determine whether a decline in fair value below the amortizable cost basis is other than temporary.

 SUMMARY OF INVESTMENT SECURITIES GROSS UNREALIZED GAINS (LOSSES)

   December 31, 2023   December 31, 2022 
Available for sale securities (all unrealized holding gains and losses are less than 12 months at date of measurement)  Fair Value   Unrealized Holding Gains (Losses)   Fair Value   Unrealized Holding Gains (Losses) 
                 
Investments in debt securities with unrealized gains  $9,857,087   $60,796   $13,278,505   $43,508 
Investments in debt securities with unrealized losses   -   $-    7,975,980    (17,014)
Total  $9,857,087   $60,796   $21,254,485   $26,494 

 

 

Investment income, which includes net realized losses on sales of available for sale securities and investment income interest and dividends, is summarized as follows:

  

   2023   2022 
Interest and dividends accrued and paid  $725,824   $502,578 
Realized losses   431,801    (49,222)
Investment income, net  $1,157,625   $453,356