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6. Investment in Securities
3 Months Ended
Mar. 31, 2021
Schedule of Investments [Abstract]  
6. Investment in Securities

1347 LP

 

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 (“1347 LP”), was established for the purpose of investing in securities.

 

Affiliates of Fundamental Global Investors, LLC (“FG”), serve as the general partner and the investment manager of 1347 LP, and the Company is the sole limited partner. As the sole limited partner, the Company is entitled to 100% of net assets held by 1347 LP. The general partner of 1347 LP is entitled to reimbursement of certain costs, fees and expenses arising in connection with 1347 LP’s operations, as provided by the partnership agreement, upon approval by the Company’s Board of Directors.

 

FG Financial Group

 

As of March 31, 2021, the Company indirectly held approximately $96 in cash and 477,282 shares of FG Financial Group, Inc. (formerly 1347 Property Insurance Holdings, Inc.) (Nasdaq: FGF) (“FGF”), with fair value of $2,219, through an investment in 1347 LP. These shares were purchased in March and May 2018 for approximately $3,741. For the three months ended March 31, 2021, the Company recognized an unrealized gain on the investment of approximately $205, compared with an unrealized loss of $306 for the same period last year. There have been no costs, fees and expenses paid to the general partner or its affiliates for any periods, including the three months ended March 31, 2021 and 2020.

 

As of March 31, 2021, the Company and the affiliates of FG, including, without limitation, Ballantyne Strong, Inc., beneficially owned in the aggregate 3,052,734 shares of FGF’s common stock, representing approximately 62% of FGF’s outstanding shares. Additionally, FG and its affiliates constitute the largest stockholder of the Company. Mr. Kyle Cerminara, a member of the Company’s Board of Directors, is Chief Executive Officer, Co-Founder and Partner of FG and serves as Chairman of the Board of Directors of Ballantyne Strong, Inc. Mr. Cerminara also serves as Chairman of the Board of Directors of FGF.