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Investment in Marketable Securities
3 Months Ended
Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Investment in Marketable Securities

3. INVESTMENT IN MARKETABLE SECURITIES

 

The Company’s investments in marketable securities is comprised of shares of stock of two (2) entities with ownership percentages of less than 5%. The Company accounted for these investments pursuant to ASU 320, Investments – Debt and Equity Securities. As such, these investments were recorded at their market value as of December 31, 2019, with the change in fair value being reflected in the statement of operations. These investments consisted of the following:

 

As of December 31, 2020, the Company owned 42,500 shares of Inventergy Global, Inc. common stock with a fair value of $1,275. The Company was able to obtain observable evidence that the investment had a market value of $0.03 per share, or an aggregate value of $1,275 as of the period ended March 31, 2021. As such, the Company recorded no change in market value during the three months ended March 31, 2021, in its statement of operations.

  

In June 2019, the Company acquired 22,222 shares of Inpixon’s restricted common stock (after giving effect to a 1:45 stock split) valued at $634,000. As of December 31, 2019, after the sale of 10,889 Inpixon shares, the Company owned 11,333 Inpixon shares with a fair value of $58,374. During the period ended March 31, 2020, the Company sold 8,500 of its Inpixon shares for total proceeds of $146,201 and recognized a gain from the sale of these shares of $102,420.

 

During the three months ended March 31, 2021, the Company sold 834 shares of its Inpixon shares for total proceeds of $1,334 and recognized a gain from the sale of these shares of $1,258.

 

The Company was able to obtain observable evidence that the remaining 2,000 shares had a market value of $2,400 as of March 31, 2021, as such, the Company recorded a gain from the increase in the fair value of the shares of $510, resulting in a net gain from the investment in Inpixon shares of $510 during the current period ended March 31, 2021.