Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities

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Marketable Securities
6 Months Ended
Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities

3. Marketable Securities

Marketable securities at June 30, 2017 and December 31, 2016 consisted of investments in short-term corporate debt securities. Management determines the appropriate classification of the securities at the time they are acquired and evaluates the appropriateness of such classifications at each balance sheet date. The Company classifies its marketable securities as available-for-sale pursuant to ASC 320, Investments – Debt and Equity Securities. Marketable securities are recorded at fair value, with unrealized gains and losses included as a component of accumulated other comprehensive loss in stockholders’ equity and a component of total comprehensive loss in the consolidated statements of comprehensive loss, until realized. The fair value of these securities is based on quoted prices for identical or similar assets. Realized gains and losses are included in investment income on a specific-identification basis. There were no realized gains or losses on marketable securities for the six months ended June 30, 2017 or 2016.

The Company reviews marketable securities for other-than-temporary impairment whenever the fair value of a marketable security is less than the amortized cost and evidence indicates that a marketable security’s carrying amount is not recoverable within a reasonable period of time. Other-than-temporary impairments of investments are recognized in the consolidated statements of operations if the Company has experienced a credit loss, has the intent to sell the marketable security, or if it is more likely than not that the Company will be required to sell the marketable security before recovery of the amortized cost basis. Evidence considered in this assessment includes reasons for the impairment, compliance with the Company’s investment policy, the severity and the duration of the impairment and changes in value subsequent to the end of the period.

Marketable securities at June 30, 2017 consist of the following:

 

Marketable Securities

   Amortized Cost      Unrealized
Gains
     Unrealized
Losses
     Fair Value  

Current:

           

Corporate debt

   $ 16,849,153      $ —        $ (19,299    $ 16,829,854  

Marketable securities at December 31, 2016 consisted of the following:

 

Marketable Securities

   Amortized Cost      Unrealized
Gains
     Unrealized
Losses
     Fair Value  

Current:

           

Corporate debt

   $ 31,405,836      $ 24      $ (51,690    $ 31,354,170  

At June 30, 2017 and December 31, 2016, the Company held only current investments. Investments classified as current have maturities of less than one year, and investments classified as non-current are those that have maturities of greater than one year and management does not intend to liquidate within the next twelve months.

At June 30, 2017 and December 31, 2016, the Company held 19 and 29 debt securities, respectively, that individually and in total were in an immaterial unrealized loss position for less than one year. The aggregate fair value of debt securities in an unrealized loss position at June 30, 2017 and December 31, 2016 was $16,829,854 and $29,343,892, respectively. The Company evaluated its securities for other-than-temporary impairment and considered the decline in market value for the securities to be primarily attributable to current economic and market conditions. It is not more likely than not that the Company will be required to sell the securities, and the Company does not intend to do so prior to the recovery of the amortized cost basis. Based on this analysis, these marketable securities were not considered to be other-than-temporarily impaired as of June 30, 2017 and December 31, 2016.