Annual report pursuant to Section 13 and 15(d)

Short-Term Investments

v3.19.1
Short-Term Investments
12 Months Ended
Dec. 31, 2018
Short-term Investments [Abstract]  
Short-Term Investments

3.  

Short-Term Investments


Investments in certain securities may be classified into three categories:


·

Held-to-maturity - Debt securities that the Company has the positive intent and ability to hold to maturity are reported at amortized cost.


·

Trading securities - Debt and equity securities that are bought and held principally for the purpose of selling in the near term are reported at fair value with unrealized gains and losses included in earnings.


·

Available-for-sale - Debt and equity securities not classified as either securities held-to-maturity or trading securities are reported at fair value with unrealized gains or losses excluded from earnings and reported as a separate component of stockholders’ equity.


The Company reassesses the appropriateness of the classification of its investments at the end of each reporting period. The Company has determined that its debt securities should be classified as held-to-maturity as of December 31, 2018. We had no debt securities as of December 31, 2017. This classification was based upon management’s determination that it has the positive intent and ability to hold the securities until their maturity dates, as all of the investments mature within 3-6 months and the underlying cash invested in these securities is not required for current operations before the investments maturity.


Investments consist of short-term FDIC insured certificates of deposit, commercial paper rated A1/P1 or above and corporate notes rated A and above carried at amortized cost using the effective interest method.


The following summarizes information about short term investments at December 31, 2018 and 2017, respectively:


 

 

Amortized
Cost

 

 

Gross
Unrealized
Losses

 

 

Estimated
Fair Value

2017

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit, commercial paper

 

$

—

 

 

$

—

 

 

$

—

2018

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit, commercial paper

 

$

5,570,158

 

 

$

(131

)

 

$

5,570,027


As of December 31, 2018, the estimated fair value of the investments was less than the amortized cost. Because management intends to hold the investments until their maturity dates, these unrealized losses were not recorded in the consolidated financial statements.