Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v2.4.0.8
Fair Value Measurements
9 Months Ended
Sep. 30, 2014
Fair Value Measurements [Abstract]  
Fair Value Measurements

NOTE 12 – FAIR VALUE MEASUREMENTS

The accounting guidance establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows:

Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date.

Level 2 – Observable inputs such as quoted prices for similar instruments and quoted prices in markets that are not active, and inputs that are directly observable or can be corroborated by observable market data. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, such as treasury securities with pricing interpolated from recent trades of similar securities, or priced with models using highly observable inputs, such as commodity options priced using observable forward prices and volatilities.

Level 3 – Significant inputs to pricing that have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as the complex and subjective models and forecasts used to determine the fair value of financial instruments.

Financial assets and liabilities measured at fair value as of September 30, 2014 and December 31, 2013, are summarized below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$

6,002,989 

 

$

 -

 

$

 -

 

$

6,002,989 

Certificates of deposit

 

 

 

 

 -

 

 

 

 

 

 -

Subtotal

 

6,002,989 

 

 

 -

 

 

 -

 

 

6,002,989 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 

1,923,144 

 

 

 -

 

 

1,923,144 

Corporate Notes/Bonds

 

 -

 

 

2,701,613 

 

 

 -

 

 

2,701,613 

Subtotal

 

 -

 

 

4,624,757 

 

 

 -

 

 

4,624,757 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 

4,269,715 

 

 

 -

 

 

4,269,715 

Corporate Notes/Bonds

 

 -

 

 

6,802,105 

 

 

 -

 

 

6,802,105 

Subtotal

 

 -

 

 

11,071,820 

 

 

 -

 

 

11,071,820 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

6,002,989 

 

$

15,696,577 

 

$

 -

 

$

21,699,566 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$

5,751,965 

 

$

 -

 

$

 -

 

$

5,751,965 

Certificates of deposit

 

 

 

 

239,904 

 

 

 

 

 

239,904 

Subtotal

 

5,751,965 

 

 

239,904 

 

 

 -

 

 

5,991,869 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 

2,582,502 

 

 

 -

 

 

2,582,502 

Corporate Notes/Bonds

 

 -

 

 

3,159,812 

 

 

 -

 

 

3,159,812 

Subtotal

 

 -

 

 

5,742,314 

 

 

 -

 

 

5,742,314 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 

1,197,320 

 

 

 -

 

 

1,197,320 

Corporate Notes/Bonds

 

 -

 

 

2,723,658 

 

 

 -

 

 

2,723,658 

Subtotal

 

 -

 

 

3,920,978 

 

 

 -

 

 

3,920,978 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Accrued Consideration

 

 -

 

 

 -

 

 

(558,801)

 

 

(558,801)

Subtotal

 

 -

 

 

 -

 

 

(558,801)

 

 

(558,801)

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

5,751,965 

 

$

9,903,196 

 

$

(558,801)

 

$

15,096,360 

 

The change in the estimated contingent consideration during the nine months was due to $565,647 in payments and  $6,846 in foreign currency gains. 

 

We record transfers between levels of the fair value hierarchy, if necessary, at the end of the reporting period. There were no transfers between levels during the nine months ended September 30, 2014.