|9 Months Ended|
Sep. 30, 2015
|Marketable Securities [Abstract]|
3. Marketable Securities
Marketable securities are considered “available-for-sale” in accordance with FASB Accounting Standard Codification (“ASC”) 320, “Debt and Equity Securities,” and thus are reported at fair value in the Company’s accompanying balance sheet, with unrealized gains and losses excluded from earnings and reported as a separate component of stockholders’ equity. Amounts reclassified out of accumulated other comprehensive income (loss) into realized gains and losses are accounted for on the basis of specific identification and are included in other income or expense in the statement of operations. The Company classifies such investments as current on the balance sheet as the investments are readily marketable and available for use in current operations.
The following table shows the Company’s marketable securities’ adjusted cost, gross unrealized gains and losses, and fair value by significant investment category as of September 30, 2015 and December 31, 2014:
The Company typically invests in highly-rated securities, with the primary objective of minimizing the potential risk of principal loss. As of September 30, 2015, the Company had one corporate bond in a loss position with a fair value of $1,005,290 and an unrealized loss of $382, which has been an unrealized loss for greater than 12 months. The Company does not intend to sell its marketable securities in an unrealized loss position. Based upon this security’s fair value relative to the cost, high rating, and volatility of fair value, the Company considers the decline in market value of this marketable security to be temporary in nature and does not consider it other-than-temporarily impaired, and anticipates that the Company will recover the entire amortized cost basis.
The amortized cost and fair value of marketable securities at September 30, 2015 by contractual maturity are shown below:
The entire disclosure for investments in certain debt and equity securities.
Reference 1: http://www.xbrl.org/2003/role/presentationRef