Annual report pursuant to Section 13 and 15(d)

Trading Securities

v3.3.1.900
Trading Securities
12 Months Ended
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]  
Trading Securities

NOTE 2 - TRADING SECURITIES

 

Trading securities are purchased with the intent of selling them in the short term. Trading securities are recorded at market value and the difference between market value and cost of the securities is recorded as an unrealized gain or loss in the statement of operations. Gains from the sales of such marketable 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.

 

The Company’s securities investments that are bought and held principally for the purpose of selling them in the near term are classified as trading securities. Trading securities are recorded at fair value based on quoted market price (level 1) on the balance sheet in current assets, with the change in fair value during the period included in earnings.

 

Investments in securities are summarized as follows:

 

                Change In    
    Fair Value at   Proceeds from   Gain (Loss) on   Unrealized   Fair Value at
Year   Beginning of Year   Sale   Sale   Gain (Loss)   End of Year
  2015     $ 6,026,780     $ (3,060,675 )   $ (1,460,576 )   $ (1,181,085 )   $ 324,444  
  2014     $ 6,609,561     $ (8,579,373 )   $ 5,989,218     $ 2,007,374     $ 6,026,780  

 

Realized gains and losses are determined on the basis of specific identification. During the years ended December 31, 2015 and 2014, sales proceeds and gross realized gains and losses on securities classified as available-for-sale securities and trading securities were:

 

    December 31, 2015   December 31, 2014
         
  Sales proceeds   $ 3,060,675     $ 8,579,373  
  Gross realized (losses)   $ (1,460,576 )   $ (74,732 )
  Gross realized gains     —         6,063,950  
  Gain on sale of marketable securities   $ (1,460,576 )   $ 5,989,218  

 

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          
      December 31, 2015       (Level 1)       Inputs
(Level 2)
      Inputs
(Level 3)
 
Trading securities   $ 324,444     $ 324,444     $ —       $ —    
Money market funds     332,706       332,706       —         —    
Total   $ 657,150     $ 657,150     $ —       $ —    

 

        Fair Value Measurements at Reporting Date Using
              Quoted Prices       Significant       Significant  
              in Active       Other       Unobservable  
      Fair Value at       Markets       Observable Inputs       Inputs  
      December 31, 2014       (Level 1)       (Level 2)       (Level 3)  
Trading securities   $ 6,026,780     $ 6,026,780     $ —       $ —    
Money market funds     673,281       673,281       —         —    
Total   $ 6,700,061     $ 6,700,061     $ —       $ —    

 

Generally, for all trading securities and available-for-sale securities, fair value is determined by reference to quoted market prices (level 1).