Marketable Securities
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Sep. 30, 2014
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Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities |
3. Marketable Securities
Marketable securities are considered available-for-sale in accordance with ASC 320, “Debt and Equity Securities,” and are classified as current assets on the balance sheet as the investments are readily marketable and available for use in the Company’s 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, 2014 and December 31, 2013:
The Company typically invests in highly-rated securities, with the primary objective of minimizing the potential risk of principal loss. As of September 30, 2014, the Company had certificates of deposit with a fair value of $15,473,585 and unrealized losses of $31,415, and corporate bonds with a fair value of $2,044,190 and an unrealized loss of $11,820, both of which have been unrealized losses for less than 12 months. The Company does not have the intent to sell its marketable securities in an unrealized loss position, and it is more likely than not that the Company will not be required to sell any of these investments before recovery of the entire amortized cost basis. The Company considers the declines in market value of its marketable securities to be temporary in nature and does not consider any of its investments other-than-temporarily impaired, and anticipates that it will recover the entire amortized cost basis.
The amortized cost and fair value of marketable securities at September 30, 2014 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because the Company may redeem certain securities at par.
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