Marketable Securities

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

Note 11. Marketable Securities

The Company classifies investments in marketable securities as trading, available-for-sale or held-to-maturity at the time of purchase and periodically re-evaluates such classification. Trading securities are carried at fair value, with unrealized holding gains and losses included in earnings. Held-to-maturity securities are recorded at cost and are adjusted for the amortization or accretion of premiums or discounts over the life of the related security. Unrealized holding gains and losses of available-for-sale securities are excluded from earnings and are reported as a separate component of accumulated other comprehensive income (loss) until realized. In determining realized gains and losses, the cost of the securities sold is based on the specific identification method. Interest and dividends on the investments are accrued at the balance sheet date.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. Fair value measurements are broken down into three levels based on the reliability of inputs as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves observable at commonly quoted intervals or current market) and contractual prices for the underlying financial instrument, as well as other relevant economic measures. Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

At September 30, 2022, the Company had no investments in marketable securities. During the nine months ended September 30, 2022, the Company incurred a realized loss on the sale of marketable securities of $60,143. During the three and nine months ended September 30, 2021, the Company incurred an unrealized loss in market value on investments in marketable securities of $3,895 and $5,545, respectively. No loss in market value on investments in marketable securities was incurred during the quarter ended September 30, 2022 as the Company invested only in investments qualified as cash and cash equivalents during the quarter.

At December 31, 2021, all investments are Level 1 and were classified as trading and consisted of the following:

		December 31, 2021
		Value of trading
	Investment	Investments
Mutual Funds	Putnam Short Duration Bond	$	1,972,736
	Putnam Ultra Short Duration Income		782,375
		$	2,755,111
	Unrealized loss	$	28,522