Quarterly report pursuant to Section 13 or 15(d)

Note 14- Investments and Fair Value

Note 14- Investments and Fair Value

3 Months Ended

Mar. 31, 2018

Note 14 - Investments and fair value

We account for our financial assets in accordance with ASC 820, Fair Value Measurement. This standard defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The fair value measurement disclosures are grouped into three levels based on valuation factors: Level 1 represents assets valued at quoted prices in active markets using identical assets; Level 2 represents assets valued using significant other observable inputs, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other observable inputs; and, Level 3 represents assets valued using significant unobservable inputs.

The hierarchy of Level 1, Level 2 and Level 3 Assets are listed as following:

		Fair Value Measurement Using
		Unadjusted Quoted Market Prices		Quoted Prices for Identical or Similar Assets in Active Markets		Significant Unobservable Inputs		Significant Unobservable Inputs
		(Level 1)		(Level 2)		(Level 3)		(Level 3)
		Investment in Securities		Other investment		Equity Options		Other Equity Investments
Balance at December 31, 2016	$	-	$	-	$	-	$	55,943
Total gains or losses
Included in earnings (or changes in net assets)		(128,623)		-		-		-
Purchases, issuances, sales, and settlements
Purchases		1,071,902		-		-		107,771
Issuances		-		-		-		-
Sales		(754,644)		-		-		-
Settlements		-		-		-		-
Balance at December 31, 2017		188,635		-		-		163,714
Total gains or losses
Included in earnings (or changes in net assets)		(1,466)		-		-		53,057
Purchases, issuances, sales, and settlements
Purchases		51,441		-		-		-
Issuances		-		-		-		-
Sales		-		-		-		(108,999)
Settlements		-		-		-		-
Balance at March 31, 2018	$	238,610	$	-	$	-	$	107,772

The Company’s investment securities are presented in available-for-sale investment securities. The amortized costs, gross unrealized holding gains and losses, and fair values of the Company’s investment securities classified as equity securities, at fair value, at March 31, 2018 consists of the following:

Type		Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses		Fair Values
NASDAQ listed company stock	$	130,997	$	-	$	(18,327)	$	112,670
OTCQB listed company stock		74,257		51,683		-		125,940
	$	205,254	$	51,683	$	(18,327)	$	238,610

The portion of unrealized gains and losses for the period related to equity securities still held at the reporting date is calculated as follows:

		Three Months Ended March 31,
		2017		2016
Net gains and losses recognized during the period on equity securities	$	(1,466)	$	(81,566)

Less: Net gains (losses) recognized during the period on equity securities sold during the period		-		-

Unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date	$	(1,466)	$	(81,566)

- 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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