Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.22.2.2
Fair Value Measurements
9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The carrying amounts reported in the balance sheet for cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value based on the short-term nature of these items.

In accordance with accounting principles generally accepted in the United States, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy prioritizes the inputs used to measure fair value as follows:

Level 1 – Valuation is based on quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2 – Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

The following table summarizes our cash equivalents and marketable securities measured at fair value. Certain marketable
securities consist of investments in debt and equity securities. We classify our cash equivalents and marketable securities within Level 1 because we use observable inputs that reflect quoted market prices for identical assets in active markets to determine their fair value. We have classified debt securities as available for sale securities with unrealized gains and losses recorded as other comprehensive income. We have classified equity securities as trading and are marked to market with changes recorded as other income on the income statement. Any interest income or dividends are recorded within financing expense, net on the income statement.

Investment Assets at Fair Value Investment Assets at Fair Value
As of September 30, 2022 As of December 31, 2021
Level 1 Total Level 1 Total
Debt securities $ 888,928  $ 888,928  $ 959,207  $ 959,207 
Equity securities $ 1,601,669  $ 1,601,669  $ 1,828,284  $ 1,828,284 
Cash equivalents $ 1,756,382  $ 1,756,382  $ 5,222,759  $ 5,222,759 
Total Investments at Fair Value $ 4,246,979  $ 4,246,979  $ 8,010,250  $ 8,010,250 

The cost, gross unrealized gains (losses) and fair value of marketable securities by major security type were as follows:
As of September 30, 2022 As of December 31, 2022
Cost Unrealized Gain (Loss) Fair Value Cost Unrealized Gain (Loss) Fair Value
Marketable securities
Debt securities $ 1,021,430  $ (132,502) $ 888,928  $ 905,470  $ 53,737  $ 959,207 
Equity securities 2,216,621  (614,952) 1,601,669  2,100,305  (272,021) 1,828,284 
Total marketable securities $ 2,490,597  $ 2,787,491