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6. Investment in Securities
9 Months Ended
Sep. 30, 2020
Schedule of Investments [Abstract]  
6. Investment in Securities

The Company has an investment in a limited partnership, FGI 1347 Holdings, LP, of which the Company is the sole limited partner. FGI 1347 Holdings, LP was established for the purpose of investing in securities.

 

As of September 30, 2020, the Company indirectly held approximately $128 in cash and 477,282 shares of 1347 Property Insurance Holdings, Inc. (Nasdaq: PIH) (“PIH”) with fair value of $1,838, through an investment in FGI 1347 Holdings, LP. These shares were purchased in March and May 2018 for approximately $3,741. For the three months ended September 30, 2020, the Company recognized an unrealized loss on the investment of approximately $291, compared with an unrealized loss of $258 for the same period last year. For the nine months ended September 30, 2020, the Company recognized an unrealized loss on the investment of approximately $797, compared with an unrealized gain of $186 for the same period last year.

 

Affiliates of Fundamental Global Investors, LLC (“Fundamental Global”) serve as the general partner and the investment manager, and the Company is the sole limited partner, of FGI 1347 Holdings, LP. As of September 30, 2020, the Company and the affiliates of Fundamental Global, including, without limitation, Ballantyne Strong, Inc. (“Ballantyne Strong”), beneficially owned in the aggregate 3,045,593 shares of PIH’s common stock, including 100,000 shares of common stock subject to a call option, representing approximately 50.2% of PIH’s outstanding shares. In addition, Capital Wealth Advisors, Inc., an affiliate of Fundamental Global, held 61,250 shares of PIH’s common stock for the accounts of individual investors, which represents approximately 1.0% of PIH’s outstanding shares. Fundamental Global with its affiliates is the largest stockholder of the Company. Mr. Kyle Cerminara, a director of the Company, is Chief Executive Officer, Co-Founder and Partner of Fundamental Global and serves as Chairman of the Board of Directors of Ballantyne Strong and of PIH. Mr. Lewis M. Johnson, a director of the Company, is President, Co-Founder and Partner of Fundamental Global and serves as Co-Chairman of the Board of Directors of Ballantyne Strong and of PIH. Mr. John Struble, the Chairman of the Company’s Board of Directors, serves as a consultant to an affiliate of Fundamental Global.