Quarterly report pursuant to Section 13 or 15(d)

Short-term Investments and Marketable Securities

v2.4.0.6
Short-term Investments and Marketable Securities
9 Months Ended
Aug. 31, 2012
Short-term Investments and Marketable Securities [Abstract]  
SHORT-TERM INVESTMENTS 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, 2012 and November 30, 2011 were as follows:

 

 

                                 
    August 31, 2012     November 30, 2011  
    COST     MARKET     COST     MARKET  

Current:

                               

Corporate obligations

  $ 250,000     $ 250,901     $ 970,461     $ 964,357  

Preferred stock

    —         —         223,373       234,445  

Common stock

    148,692       148,218       454,855       382,340  

Limited partnership

    223,373       280,305       443,818       557,827  

Mutual funds

    —         —         285,480       223,027  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total Current

    622,065       679,424       2,377,987       2,361,996  
   

 

 

   

 

 

   

 

 

   

 

 

 
     
    August 31, 2012     November 30, 2011  
    COST     MARKET     COST     MARKET  

Non-Current

                               

Corporate obligations

    754,492       743,988       754,518       734,418  

Preferred stock

    —         —         2,404,581       2,248,608  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total Non-Current

    754,492       743,988       3,159,099       2,983,026  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 1,376,557     $ 1,423,412     $ 5,537,086     $ 5,345,022  
   

 

 

   

 

 

   

 

 

   

 

 

 

As of August 31, 2012, the Company had unrealized gains on its investments of $46,855. This amount was reduced by a deferred tax (expense) of $(18,695), of which a deferred tax benefit of $77,594 was recorded in prior fiscal years and a deferred tax (expense) of $(96,289) was recorded in fiscal 2012. None of the unrealized losses have been deemed to be other-than-temporary impairments.

Bank certificates of deposit are insured by the Federal Deposit Insurance Corporation 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 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.

 

                         
                Significant  
          Quoted Market     Other  
          Price in     Observable  
    August 31,     Acitve Markets     Inputs  

Description

  2012     (Level 1)     (Level 2)  

Corporate obligations

  $ 994,889     $ —       $ 994,889  

Limited partnership

    280,305       280,305       —    

Common stock

    148,218       148,218       —    
   

 

 

   

 

 

   

 

 

 

Total

  $ 1,423,412     $ 428,523     $ 994,889  
   

 

 

   

 

 

   

 

 

 

 

                         
                Significant  
          Quoted Market     Other  
          Price in     Observable  
    November 30,     Active Markets     Inputs  

Description

  2011     (Level 1)     (Level 2)  

Corporate obligations

  $ 1,698,775     $ —       $ 1,698,775  

Limited partnership

    234,445       234,445          

Preferred stock

    2,630,948       2,630,948          

Common stock

    557,827       557,827          

Mutual funds

    223,027       190,302       32,725  
   

 

 

   

 

 

   

 

 

 

Total

  $ 5,345,022     $ 3,613,522     $ 1,731,500