Quarterly report pursuant to Section 13 or 15(d)

Cash, Cash Equivalents and Short-Term Investments

v3.10.0.1
Cash, Cash Equivalents and Short-Term Investments
9 Months Ended
Sep. 30, 2018
Cash And Cash Equivalents [Abstract]  
Cash, Cash Equivalents and Short-Term Investments

Note 4. Cash, Cash Equivalents and Short-Term Investments

The following tables show the Company’s cash and cash equivalents and short-term investments by significant investment category as of September 30, 2018 and December 31, 2017:

 

 

September 30, 2018

 

 

 

Amortized Cost

 

 

Gross Unrealized Gain (Loss)

 

 

Estimated Fair Value

 

 

Cash and Cash Equivalents

 

 

Short-Term Investments

 

Cash

 

$

2,215,116

 

 

$

 

 

$

2,215,116

 

 

$

2,215,116

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1 (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

 

7,848,998

 

 

 

 

 

 

7,848,998

 

 

 

7,848,998

 

 

 

 

U.S. treasury securities

 

 

989,051

 

 

 

89

 

 

 

989,140

 

 

 

 

 

 

989,140

 

Subtotal

 

 

8,838,049

 

 

 

89

 

 

 

8,838,138

 

 

 

7,848,998

 

 

 

989,140

 

Level 2 (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

8,531,479

 

 

 

 

 

 

8,531,479

 

 

 

 

 

 

8,531,479

 

Corporate debt obligations

 

 

5,936,106

 

 

 

(2,008

)

 

 

5,934,098

 

 

 

 

 

 

5,934,098

 

Repurchase agreements

 

 

3,000,542

 

 

 

 

 

 

3,000,542

 

 

 

3,000,542

 

 

 

 

Asset-backed securities

 

 

3,312,145

 

 

 

(1,626

)

 

 

3,310,519

 

 

 

 

 

 

3,310,519

 

Subtotal

 

 

20,780,272

 

 

 

(3,634

)

 

 

20,776,638

 

 

 

3,000,542

 

 

 

17,776,096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

31,833,437

 

 

$

(3,545

)

 

$

31,829,892

 

 

$

13,064,656

 

 

$

18,765,236

 

 

 

 

 

December 31, 2017

 

 

 

Amortized Cost

 

 

Gross Unrealized Losses

 

 

Estimated Fair Value

 

 

Cash and Cash Equivalents

 

 

Short-Term Investments

 

Cash

 

$

3,040,696

 

 

$

 

 

$

3,040,696

 

 

$

3,040,696

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1 (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

 

8,234,751

 

 

 

 

 

 

8,234,751

 

 

 

8,234,751

 

 

 

 

U.S. treasury securities

 

 

2,490,799

 

 

 

(5,540

)

 

 

2,485,259

 

 

 

 

 

 

2,485,259

 

Subtotal

 

 

10,725,550

 

 

 

(5,540

)

 

 

10,720,010

 

 

 

8,234,751

 

 

 

2,485,259

 

Level 2 (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

9,716,093

 

 

 

 

 

 

9,716,093

 

 

 

 

 

 

9,716,093

 

Corporate debt obligations

 

 

6,829,191

 

 

 

(9,414

)

 

 

6,819,777

 

 

 

 

 

 

6,819,777

 

Repurchase agreements

 

 

3,000,233

 

 

 

 

 

 

3,000,233

 

 

 

3,000,233

 

 

 

 

Asset-backed securities

 

 

3,018,276

 

 

 

(1,953

)

 

 

3,016,323

 

 

 

750,388

 

 

 

2,265,935

 

Subtotal

 

 

22,563,793

 

 

 

(11,367

)

 

 

22,552,426

 

 

 

3,750,621

 

 

 

18,801,805

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

36,330,039

 

 

$

(16,907

)

 

$

36,313,132

 

 

$

15,026,068

 

 

$

21,287,064

 

 

 

(1)

Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities.

 

(2)

Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.  

 

The Company’s investments were primarily valued based upon one or more valuations reported by its investment accounting and reporting service provider.  The investment service provider values the securities using a hierarchical security pricing model that relies primarily on valuations provided by a third-party pricing vendor.  Such valuations may be based on trade prices in active markets for identical assets or liabilities (Level 1 inputs) or valuation models using inputs that are observable either directly or indirectly (Level 2 inputs), such as quoted prices for similar assets or liabilities, yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures.  The Company performs certain procedures to corroborate the fair value of its holdings, including comparing valuations obtained from its investment service provider with other pricing sources to validate the reasonableness of the valuations.    

 

The Company typically invests in highly-rated securities, and its investment policy limits the amount of credit exposure to any one issuer.  The policy requires investments in fixed income instruments denominated and payable in U.S. dollars only and requires investments to be investment grade, with a primary objective of minimizing the potential risk of principal loss.  

 

The following table presents the Company’s short-term investments with unrealized losses by investment category and length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2018:

 

 

Less Than 12 Months

 

Description of Securities

 

Estimated Fair Value

 

 

Unrealized Losses

 

September 30, 2018

 

 

 

 

 

 

 

 

Corporate debt obligations

 

$

4,482,979

 

 

$

(2,091

)

Asset-backed securities

 

 

3,310,519

 

 

 

(1,626

)

Total

 

$

7,793,498

 

 

$

(3,717

)

 

 

The Company considers the declines in market value of its short-term investments to be temporary in nature.  Fair values were determined for each individual security in the investment portfolio.  When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates and the Company’s intent to sell, or whether it is more likely than not it will be required to sell the investment before recovery of the investment’s cost basis.  As of September 30, 2018, the Company does not consider any of its investments to be other-than temporarily impaired.

 

Contractual maturities of short-term investments as of September 30, 2018 are as follows:

 

 

 

Estimated Fair Value

 

Due within one year

 

$

18,765,236

 

Total

 

$

18,765,236