Quarterly report pursuant to sections 13 or 15(d)

Fair Value Measurements

v2.3.0.15
Fair Value Measurements
 9 Months Ended
Jul. 31, 2011
Fair Value Measurements  
Fair Value Measurements
4.

FAIR VALUE MEASUREMENTS

ASC 820 "Fair Value Measurements and Disclosures" ("ASC 820") defines fair value, establishes a framework for measuring fair value under GAAP, and expands disclosures about fair value measurements. In accordance with ASC 820, we have categorized our financial assets, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below. We do not have any financial liabilities that are required to be measured at fair value on a recurring basis. If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

Financial assets recorded in the accompanying condensed consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:

Level 1 - Financial assets whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market which we have the ability to access at the measurement date.

 

Level 2 - Financial assets whose values are based on quoted market prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets.

Level 3 - Financial assets whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management's own assumptions about the assumptions a market participant would use in pricing the asset. We do not currently have any Level 3 financial assets.

The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of July 31, 2011:

 

     Level 1      Level 2      Level 3      Total  

Money market funds – Cash and cash equivalents

        $ 209,229               $ -               $ -               $ 209,229       

U.S. government securities and certificates of deposit - Short-term investments

         2,998,594                2,998,594       

Videocon Industries Limited global depository receipts

      6,361,829                   6,361,829       

Digital Info Security Co. Inc. common stock

      16,986                   16,986       
  

 

 

     

 

 

     

 

 

     

 

 

  

Total financial assets

        $ 6,588,044               $ 2,998,594               $ -               $ 9,586,638       
  

 

 

     

 

 

     

 

 

     

 

 

  

The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of October 31, 2010:

 

     Level 1      Level 2      Level 3      Total  

Money market funds – Cash and cash equivalents

        $ 18,015               $ -               $ -               $ 18,015       

U.S. government securities - Cash and cash equivalents

         849,971                849,971       

Videocon Industries Limited global depository receipts

      8,524,821                   8,524,821       

Digital Info Security Co. Inc. common stock

      143,989                   143,989       
  

 

 

     

 

 

     

 

 

     

 

 

  

Total financial assets

        $ 8,686,825               $ 849,971               $ -               $ 9,536,796       
  

 

 

     

 

 

     

 

 

     

 

 

  

 

Our non financial assets and liabilities that are measured on a non-recurring basis include our property and equipment which are measured using fair value techniques whenever events or changes in circumstances indicate a condition of impairment exists. These assets were not presented in the preceding table.

It is impractical to determine the fair value of the investment in Volga given that Volga is a Russian company, operates under Russian corporate law, and Volga does not use United States GAAP. This investment was not presented in the preceding table.

The estimated fair value of receivables (other than the loan receivable), accounts payable and accrued liabilities approximates their individual carrying amounts due to the short term nature of these measurements. It is impractical to determine the fair value of the loan receivable and loan payable to the related party given the nature of these loans. These assets and liabilities were not presented in the preceding table.