Quarterly report pursuant to Section 13 or 15(d)

Trading Securities

v3.7.0.1
Trading Securities
3 Months Ended
Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
Trading Securities

NOTE 2 - TRADING SECURITIES

 

The Company’s securities investments are bought and held principally for the purpose of selling them in the short term and are classified as trading securities. Trading securities are recorded at fair value based on quoted market prices (level 1) on the balance sheet in current assets, with the change in fair value during the period included in earnings as unrealized gains or losses in the statement of operations. Gains from the sales of such securities will be utilized to fund payment of obligations and to provide working capital for operations and to finance future growth, including, but not limited to: conducting our ongoing business, conducting strategic business development, marketing analysis, due diligence investigations into possible acquisitions, and research and development and implementation of the Company’s business plans generally.

 

Investments in securities are summarized as follows:

 

    Fair Value at            
Year   Beginning of Year   Purchases  

Proceeds from

Sale

 

Gain on

Sale

 

Unrealized

Loss

 

Fair Value at

March 31, 2017

  2017     $ 59,000     $ —       $ —       $ —       $ (15,000 )   $ 44,000  

  

Realized gains and losses are determined on the basis of specific identification. During the three months ended March 31, 2017 and 2016, sales proceeds and gross realized gains and losses on trading securities were:

 

    March 31,
2017
  March 31,
2016
         
  Sales proceeds   $ —       $ 189,000  
  Gross realized (losses)   $ —       $ —    
  Gross realized gains     —         49,000  
  Gain (loss) on sale of trading securities   $ —       $ 49,000  

  

The following table discloses the assets measured at fair value on a recurring basis and the methods used to determine fair value:

 

        Fair Value Measurements at Reporting Date Using
        Quoted Prices   Significant   Significant
        in Active   Other   Unobservable
    Fair Value at   Markets   Observable Inputs   Inputs
    March 31, 2017   (Level 1)   (Level 2)   (Level 3)
Trading securities    $                   44,000    $                   44,000    $                           -       $                          -   
Money market funds                         36,000                         36,000                                 -                                   -   
Total    $                   80,000    $                   80,000    $                           -       $                          -   

  

        Fair Value Measurements at Reporting Date Using
        Quoted Prices   Significant   Significant
        in Active   Other   Unobservable
    Fair Value at   Markets   Observable Inputs   Inputs
    December 31, 2016   (Level 1)   (Level 2)   (Level 3)
Trading securities    $                   59,000    $                   59,000    $                           -       $                          -   
Money market funds                         36,000                         36,000                                 -                                   -   
Total    $                   95,000    $                   95,000    $                           -       $                          -   

 

The fair value of the Company’s trading securities is determined by reference to quoted market prices (level 1). During the three months ended March 31, 2017, the Company recorded $15,000 in unrealized losses to account for the changes in fair value of its trading securities. During the three months ended March 31, 2016, the Company recorded $101,000 in unrealized gains to account for the changes in fair value of its trading securities.