SUNation Energy, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Cash Equivalents And Investments

Cash Equivalents And Investments

3 Months Ended

Mar. 31, 2016

Cash Equivalents And Investments [Abstract]

NOTE 2 – CASH EQUIVALENTS AND INVESTMENTS

The following tables show the Company’s cash equivalents and available-for-sale securities’ amortized cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or short and long term investments as of March 31, 2016 and December 31, 2015:



March 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash Equivalents		Short-Term Investments		Long-Term Investments

Cash equivalents:
Money Market funds	$	2,480,000	$	-	$	-	$	2,480,000	$	2,480,000	$		$
Subtotal		2,480,000		-		-		2,480,000		2,480,000		-		-

Investments:
Certificates of deposit		5,251,000		11,000		(1,000)		5,261,000		-		2,891,000		2,370,000
Corporate Notes/Bonds		5,040,000		2,000		(1,000)		5,041,000		-		5,041,000		-
Subtotal		10,291,000		13,000		(2,000)		10,302,000		-		7,932,000		2,370,000


Total	$	12,771,000	$	13,000	$	(2,000)	$	12,782,000	$	2,480,000	$	7,932,000	$	2,370,000



December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash Equivalents		Short-Term Investments		Long-Term Investments

Cash equivalents:
Money Market funds	$	1,944,000	$	-	$	-	$	1,944,000	$	1,944,000	$		$
Subtotal		1,944,000		-		-		1,944,000		1,944,000		-		-

Investments:
Certificates of deposit		5,493,000		3,000		(8,000)		5,488,000		-		1,202,000		4,286,000
Corporate Notes/Bonds		6,056,000		-		(22,000)		6,034,000		-		4,027,000		2,007,000
Subtotal		11,549,000		3,000		(30,000)		11,522,000		-		5,229,000		6,293,000


Total	$	13,493,000	$	3,000	$	(30,000)	$	13,466,000	$	1,944,000	$	5,229,000	$	6,293,000

As part of the Company’s amended credit agreement with Wells Fargo Bank, the Company has pledged $5.0 million in long term investments against the line of credit. The Company tests for other-than-temporary losses on a quarterly basis and has considered the unrealized losses shown above to be temporary in nature. The Company intends to hold these investments until it can recover the full principal amount and has the ability to do so based on its other sources of liquidity. The Company expects these recoveries to occur prior to the contractual maturities. All unrealized losses as of March 31, 2016 were in a continuous unrealized loss position for less than twelve months and are not deemed to be other than temporarily impaired as of March 31, 2016.

The following table summarizes the estimated fair value of our investments, designated as available-for-sale and classified by the contractual maturity date of the securities as of March 31, 2016:



	Amortized Cost		Estimated Market Value

Due within one year	$	7,924,000	$	7,932,000
Due after one year through five years		2,367,000		2,370,000
	$	10,291,000	$	10,302,000

The Company did not recognize any gross realized gains, and gross realized losses were immaterial, during the three-month periods ending March 31, 2016 and 2015, respectively. If the Company had realized gains or losses, they would be included within investment and other income in the accompanying consolidated results of operations.

- Definition

The entire disclosure for investments in certain debt and equity securities.

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