6. Investment in Securities

9 Months Ended

Sep. 30, 2017

Schedule of Investments [Abstract]

NOTE 6 - Investment in Securities

As of September 30, 2017, the Company, through its wholly owned subsidiary, held approximately 1.5 million shares of Iteris, Inc. (NASDAQ: ITI), which represented approximately 4.5% of Iteris’s outstanding shares.  During the quarter ended June 30, 2017, the Company sold 163,221 shares for approximately $897, realizing a gain on the sales of approximately $617. In September, the Company sold an additional 148,281 shares for approximately $922, realizing a gain on the sales of approximately $670. At September 30, 2017, the Company recognized unrealized gains of approximately $2,453, net of tax of $1,360, which is included in accumulated other comprehensive income as a separate component of stockholders’ equity.

On July 29, 2016, the Company, one of the Company’s significant stockholders, and certain of their affiliates, entered into an agreement with Iteris. Pursuant to the agreement, a director of the Company, who is an executive, co-founder and partner of the significant stockholder that is party to the agreement, was appointed to the Board of Directors of Iteris.  As of September 30, 2017, the Company and the significant stockholder of the Company beneficially own in the aggregate 1,746,743 shares of Iteris, which represents approximately 5.4% of Iteris’s outstanding shares.