Quarterly report pursuant to Section 13 or 15(d)

Short-Term Investments and Marketable Securities

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Short-Term Investments and Marketable Securities
9 Months Ended
Aug. 31, 2011
Short-Term Investments and Marketable Securities [Abstract]  
SHORT-TERM INVESTMENT AND MARKETABLE SECURITIES
NOTE 7 — SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES
Short-term investments and marketable securities, which consist of fully guaranteed bank certificates of deposit, stock and various corporate and government obligations, are stated at market value. The Company has classified its investments as Available-for-Sale securities and considers as current assets those investments which will mature or are likely to be sold within the ensuing twelve months. The remaining investments are considered non-current assets. The cost and market values of the investments at August 31, 2011 and November 30, 2010 were as follows:
                                 
    August 31, 2011     November 30, 2010  
    COST     MARKET     COST     MARKET  
Current:
                               
Guaranteed bank certificates of deposit
  $     $     $ 816,000     $ 821,836  
Corporate obligations
    970,461       967,811       200,000       202,364  
U.S. Government obligations (including mortgage backed securities)
                2,499,185       2,499,100  
Preferred stock
    454,855       391,080       250,000       216,140  
Common stock
    443,815       538,742       667,188       710,023  
Limited Partnership
    223,373       221,815              
Mutual funds
    215,274       191,377       215,273       187,639  
Other equity
    70,206       35,297       70,202       36,746  
 
                       
 
                               
Total Current
    2,377,984       2,346,122       4,717,848       4,673,848  
 
                       
                                 
    August 31, 2011     November 30, 2010  
    COST     MARKET     COST     MARKET  
 
                               
Long-term:
                               
Corporate obligations
    754,518       743,628       750,000       748,629  
Preferred stock
    2,404,587       2,371,035       2,391,002       2,375,422  
 
                       
 
                               
Total Long-term
    3,159,105       3,114,663       3,141,002       3,124,051  
 
                       
 
                               
Total
  $ 5,537,089     $ 5,460,785     $ 7,858,850     $ 7,797,899  
 
                       
As of August 31, 2011, the Company had unrealized losses on its investments of $(76,301). This amount was reduced by a deferred tax benefit of $30,826, of which a $24,928 benefit was recorded in prior fiscal years and a benefit of $5,898 was recorded in fiscal 2011. None of the unrealized losses have been deemed to be other-than-temporary or temporary impairments, and are accounted for under mark-to-market rules for Available-for-Sale securities. Please see Note 3 for further information.
Bank certificates of deposit and interest bearing accounts are insured by the Federal Deposit Insurance Corporation up to $250,000. Non-interest bearing accounts are insured for the full balance under the Temporary Liquidity Guarantee Program. The Company maintains accounts with several brokerage firms. The accounts contain cash and securities. Balances are insured up to $500,000 (with a limit of $100,000 for cash) by the Securities Investor Protection Corporation (SIPC).
The Company adopted ASC Topic 820, “Fair Value Measurements and Disclosures” as of December 1, 2007, which expands disclosures about investments that are measured and reported at fair market value. ASC Topic 820 established a fair value hierarchy that prioritizes the inputs to valuation techniques utilized to measure fair value into three broad levels as follows:
Level 1 — Quoted market prices in active markets for the identical asset or liability that the reporting entity has ability to access at the measurement date.
Level 2 — Quoted market prices for identical or similar assets or liabilities in markets that are not active, and where fair value is determined through the use of models or other valuation methodologies.
Level 3 — Unobserved inputs for the asset or liability. Fair value is determined by the reporting entity’s own assumptions utilizing the best information available, and includes situations where there is little market activity for the investment.
                         
            Quoted     Significant  
            Market Price     Other  
            in Active     Observable  
    August 31,     Markets     Inputs  
Description   2011     (Level 1)     (Level 2)  
Bank Certificates of Deposit
  $     $     $  
Corporate obligations
    1,711,439             1,711,439  
Preferred Stock
    2,762,115       2,762,115        
Common Stock
    538,742       538,742        
Limited Partnership
    221,815       221,815        
Mutual Funds
    191,377       191,377        
Other Equity
    35,297             35,297  
 
                 
 
                       
Total
  $ 5,460,785     $ 3,714,049     $ 1,746,736  
 
                 
                         
            Quoted     Significant  
            Market Price     Other  
            in Active     Observable  
    November 30,     Markets     Inputs  
Description   2010     (Level 1)     (Level 2)  
Bank Certificates of Deposit
  $ 821,836     $     $ 821,836  
Corporate obligations
    950,993             950,993  
Government Obligations
    2,499,100       2,499,100        
Preferred Stock
    2,591,562       2,591,562        
Common Stock
    710,023       710,023        
Mutual Funds
    187,639       187,639        
Other Equity
    36,746             36,746  
 
                 
 
                       
Total
  $ 7,797,899     $ 5,988,324     $ 1,809,575