NOTE

INVESTMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS

Wainwright, from time to time, provides initial investments in the creation of ETP funds that Wainwright manages. Wainwright classifies these investments as current assets as these investments are generally sold within

one

year from the balance sheet date. Investments in which

controlling financial interest or significant influence exists are recorded at fair value with unrealized holding gains and losses included in accumulated other comprehensive income (loss) as a component of stockholders

’ equity, except for unrealized losses determined to be other-than-temporary, which are included in the consolidated statements of operations and comprehensive income (loss). As of

December 31, 2017

and

June 30, 2017,

investments were approximately

$3.4

million and

$3.6

million, respectively. Investments in which

controlling financial interest exists, but significant influence exists are recorded as per the equity method of investment accounting. As of

December 31, 2017

and

June 30, 2017,

there were

investments requiring the equity method investment accounting.

Investments measured at estimated fair value consist of the following as of

December 31, 2017

and

June 30, 2017:

	December 3 1 , 2017
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market funds	$	479,910	$	-	$	-		$	479,910
USCI mutual fund investment		2,500,000		203,720		-			2,703,720
Hedged asset		395,000		-		(211,912	)		183,088
Other equities		1,577		-		(440	)		1,137
Total short-term investments	$	3,376,487	$	203,720	$	(212,352	)		3,367,855

	June 30, 2017
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market funds	$	86,204	$	-	$	-		$	86,204
USCI mutual fund investment		2,500,000		-		(49,080	)		2,450,920
MENU ETF investment		768,427		41,473		-			809,900
Hedged asset		187,000		43,746		-			230,746
Other equities		1,577		-		(598	)		979
Total short-term investments	$	3,543,208	$	85,219	$	(49,678	)	$	3,578,749

The following table

s summarize the valuation of the Company’s securities at

December 31, 2017

and

June 30, 2017

using the fair value hierarchy:

	December 3 1 , 2017
	Total		Level 1		Level 2		Level 3
Money market funds	$	479,910	$	479,910	$	-	$	-
Mutual fund investment		2,703,720		2,703,720		-		-
Hedge asset		183,088		-		183,088		-
Other equities		1,137		1,137		-		-
Total	$	3,367,855	$	3,184,767	$	183,088	$	-

	June 30, 2017
	Total		Level 1		Level 2		Level 3
Money market funds	$	86,204	$	86,204	$	-	$	-
Mutual fund investment		2,450,920		2,450,920		-		-
ETF investment		809,900		809,900		-		-
Hedge asset		230,746		-		230,746		-
Other equities		979		979		-		-
Total	$	3,578,749	$	3,348,003	$	230,746	$	-

During the

three

and

six

months ended

December 31, 2017

and

2016,

there were

transfers between Level

and Level