Note 7 - Fair Value Measurements

3 Months Ended

Mar. 31, 2020

Note

– FAIR VALUE MEASUREMENTS

Inputs used to measure fair value are organized into a fair value hierarchy based on the observability of the inputs. Level

inputs consist of quoted prices in active markets for identical assets. Level

inputs are inputs, other than quoted prices, for similar assets that are observable. Level

inputs are unobservable inputs.

Recurring Fair Value Measurements

Certain of the Company’s assets are reported at fair value in the accompanying balance sheets on a recurring basis. The Company determined the fair value of the available-for-sale debt securities using quoted market prices for securities with similar maturity dates and interest rates. At

March

31,

2020

and

December

31,

2019,

the Company’s assets reported at fair value on a recurring basis are summarized as follows:

	March 31, 2020
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Financial Assets:
Available-for-Sale Debt Securities –
U.S. Treasury Bills Maturing in 2020	$	---	$	18,582,693	$	---
Equity Securities:
Domestic Equities		380,764		---		---
International Equities		88,673		---		---
Others		5,807		---		---
	$	475,244	$	18,582,693	$	---

	December 31, 2019
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Financial Assets:
Available-for-Sale Debt Securities –
U.S. Treasury Bills Maturing in 2020	$	---	$	18,517,910	$	---
Equity Securities:
Domestic Equities		364,171		---		---
International Equities		110,629		---		---
Others		70,275		---		---
	$	545,075	$	18,517,910	$	---

Non-

ecurring Fair Value Measurements

The Company’s asset retirement obligation annually represents a non-recurring fair value liability. The fair value of the non-financial liability incurred in the

three

months ended

March

31,

2020

and

2019

was

$4,206

and

$8,352,

respectively, and was calculated using Level

inputs. See Note

above for more information about this liability and the inputs used for calculating fair value.

The impairment loss in the quarter ended

March

31,

2020

was

$1,312,328

with

none

2019.

This also represents non-recurring fair value expense calculated using Level

inputs. See Note

below for a description of the impairment loss calculation.

Fair Value of Financial Instruments

The Company’s financial instruments consist primarily of cash and cash equivalents, trade receivables, marketable securities, trade payables and dividends payable. At

March

31,

2020

and

December

31,

2019,

the historical cost of cash and cash equivalents, trade receivables, trade payables and dividends payable are considered to be representative of their respective fair values due to the short-term maturities of these items.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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