Investments

3 Months Ended

Mar. 31, 2023

Investments

Note 4. Investments

As of March 31, 2023 and December 31, 2022, the Company held investments in corporate and U.S. government bonds that are required to be measured for disclosure purposes at fair value on a recurring basis. The bonds are considered held-to-maturity and are recorded at amortized cost on the balance sheet. These investments are considered level 2 as detailed in the table below. The Company considers investments which will mature in the next twelve months and interest receivable on the long-term bonds as current assets. The remaining investments are considered non-current assets including the investment in marketable securities which the Company intends to hold longer than twelve months. The fair value of these investments was estimated using recently executed transactions and market price quotations. At March 31, 2023, the length of time until maturity of the bonds currently owned ranged from 2 months to 20 months. The amortized cost, allowance for credit losses, fair value, and the related unrecognized gains and losses of these investments, were as follows:


					Gross			Gross
		Amortized			Unrealized			Unrealized
		Cost			Gains			Losses			Fair Value
March 31, 2023
Corporate bonds		$	1,500,000		$	—		$	(9,116)		$	1,490,884
U.S. government treasuries			489,265			8,280			—			497,545
Total investments		$	1,989,265		$	8,280		$	(9,116)		$	1,988,429

Allowance for credit losses			(5,000)
Total investments, net		$	1,984,265

December 31, 2022
Corporate bonds		$	1,500,000		$	—		$	(1,924)		$	1,498,076
U.S. government treasuries			489,265			2,665			—			491,930
Total investments		$	1,989,265		$	2,665		$	(1,924)		$	1,990,006

The Company uses an “expected credit loss” measurement objective for the recognition of credit losses for held-to-maturity securities at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period as necessary for changes in expected lifetime credit losses. The credit loss calculations for held-to-maturity securities are based upon historical default and recovery rates of bonds rated with the same rating as the current portfolio. An adjustment factor is applied to these credit loss calculations based upon management’s assessment of the expected impact from current economic conditions on our investments. The Company monitors the credit quality of debt securities classified as held-to-maturity through the use of their respective credit ratings and update them on a quarterly basis with the latest assessment completed on March 31, 2023. Our allowance for credit losses was $5,000 at March 31, 2023.