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

December 31, 2018,

and

June 30, 2018,

there were

investments requiring the equity method investment accounting.

With respect to ASU

2016

01,

we reclassified net after-tax unrealized gains on equity securities as of

June 30, 2018

from accumulated other comprehensive income to retained earnings. We continue to carry our investments in equity securities at fair value and there is

change to the asset values or total shareholders’ equity that we would have otherwise recorded. Beginning

July 1, 2018

we are including unrealized gains and losses arising from the changes in the fair values of our equity securities as a component of investment gains and losses in the condensed consolidated statements of operations. ASU

2016

prohibited the restatement of prior year financial statements and for periods ending prior to

2018,

unrealized gains and losses from the changes in fair value of available-for-sale equity securities were recorded in other comprehensive income.

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

March 31, 2019

and

June 30, 2018:

	March 31, 201 9
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market funds	$	1,000,335	$	-	$	-		$	1,000,335
USCF mutual fund investment		-		-		-			-
Hedged asset		33,203		-		-			33,203
Other equities		3,421		-		(968	)		2,453
Total investments	$	1,036,959	$	-	$	(968	)		1,035,991

	June 30, 2018
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market funds	$	180,138	$	-	$	-		$	180,138
USCF mutual fund investment		2,500,000		280,480					2,780,480
Hedged asset		523,100		-		(280,761	)		242,339
Other equities		1,577		-		(529	)		1,048
Total investments	$	3,204,815	$	280,480	$	(281,290	)	$	3,204,005

The following tables summarize the valuation of the Company’s securities at

March 31, 2019

and

June 30, 2018

using the fair value hierarchy:

	March 31, 201 9
	Total		Level 1		Level 2		Level 3
Money market funds	$	1,000,335	$	1,000,335	$	-	$	-
USCF mutual fund investment		-		-		-		-
Hedge asset		33,203		-		33,203		-
Other equities		2,453		2,453		-		-
Total	$	1,035,991	$	1,002,788	$	33,203	$	-

	June 30, 2018
	Total		Level 1		Level 2		Level 3
Money market funds	$	180,138	$	180,138	$	-	$	-
Mutual fund investment		2,780,480		2,780,480		-		-
Hedge asset		242,339		-		242,339		-
Other equities		1,048		1,048		-		-
Total	$	3,204,005	$	2,961,666	$	242,339	$	-

During the

three

and

nine

months ended

March 31, 2019

and

2018,

there were

transfers between Level

and Level