t believes the Company's exposure to interest rate risk associated with financial instruments (such as investments and borrowings) is not material. Fair Value of Financial Instruments The carrying value of cash equivalents, accounts receivable, accounts payable and accrued expenses approximates fair value because of their short m

accounts receivable when and if collection becomes doubtful. The Company has not recorded any allowance for doubtful accounts on customer accounts. Fair Value of Financial Instruments The Company's financial instruments consist principally of cash and cash equivalents, accounts receivable. accounts payable, and preferred stock wa

receivable when and if collection becomes doubtful. To date, the Company has not recorded any allowance for doubtful accounts on customer accounts. Fair Value of Financial Instruments The Company's financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable, and preferred stock wa

fter January 1, 2013. The Company is currently evaluating the impact of these disclosures on its consolidated financial statements. 3. INVESTMENTS Fair Value of Financial Instruments — In accordance with FASB Accounting Standards Codification ("ASC") Topic 820 ("ASC Topic 820"), the Company defines fair value as "the price that w

ompany places its cash and cash equivalents with large financial institutions. Balances in these accounts exceed federally insured limits at times. Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurement (ASC 820), to its assets and liabilities that are required to be measured at

isk—Sensitivity. Them have been no material changes to the underlying valuation models during the periods that our financial results are presented. Fair Value of Financial Instruments U.S. GAAP guidance requires the disclosure of the estimated fair value of financial instruments. The fair value of a financial instrument is the amo