Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Investments and Fair Value

v3.8.0.1
Note 10 - Investments and Fair Value
6 Months Ended
Jun. 30, 2017
Notes  
Note 10 - Investments and Fair Value

Note 10 - 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)

 

 

Available-for-

sale Securities

 

Other investment

 

Equity Options

 

Other Equity

Investments

Balance at December 31, 2015

$

37,500   

$

-   

$

-   

$

55,943   

Total gains or losses

 

 

 

 

 

Included in earnings (or changes in net assets)

 

(8,831)  

 

-   

-   

 

(20,000)  

Purchases, issuances, sales, and settlements

 

 

 

 

 

Purchases

 

-   

 

-   

-   

 

-   

Issuances

 

-   

 

-   

-   

 

50,000   

Sales

 

(28,669)  

 

-   

-   

 

-   

Settlements

 

-   

 

-   

-   

 

(30,000)  

Balance at December 31, 2016

 

-   

 

-   

-   

 

55,943   

Total gains or losses

 

 

 

 

 

Included in earnings (or changes in net assets)

 

(247,086)  

 

-   

-   

 

-   

Purchases, issuances, sales, and settlements

 

 

 

 

 

Purchases

 

1,049,086   

 

-   

-   

 

107,771   

Issuances

 

-   

 

-   

-   

 

-   

Sales

 

-   

 

-   

-   

 

-   

Settlements

 

-   

 

-   

-   

 

-   

Balance at June 30, 2017

$

802,000   

$

-   

$

-   

$

163,714   

 

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 available-for-sale at June 30, 2017 consists of the following:

 

Type

 Amortized

Costs

 Gross

Unrealized

Gains

 Gross

Unrealized

Losses

 Fair Values

NASDAQ listed company stock

$

1,049,086

$

(247,086)

$

-

$

802,000

 

There were no investment securities held at December 31, 2016.

 

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

June 30,

Six Months Ended

June 30,

 

 

2017

2016

2017

2016

 

Net gains and losses recognized during the period on equity securities

$

(247,086)

$

-

$

(247,086)

$

(21,394)

 

Less: Net gains and losses recognized during the period on equity

securities sold during the period

 

 -

 -

 -

 21,394

 

Unrealized gains and losses recognized during the reporting period on

equity securities still held at the reporting date

$

(247,086)

$

-

$

(247,086)

$

-