3.	INVESTMENTS

Beginning in

2017,

and in subsequent periods we entered into a Loan Agreement and various Promissory Notes, as discussed in more detail in Note

with a privately-held identity and professional services company with ties to the FinTech industry. In

June 2019,

we converted the Loan Agreement and all Promissory Notes into equity resulting in ownership of

percent of the company. We also entered into

two

new Loan Agreements with principal balances of

$1,000,000

and

$500,000,

respectively, that bear interest at the rate of

6.0

percent annually with maturity dates of

June 2021

and

October 2021,

respectively. We account for our investment using the equity method of accounting which resulted in a loss of

$332,000

for the

twelve

months ended

December 31, 2019,

included in other income, net on the Consolidated Statement of Operations. The carrying value of

$2,321,000

is included in long-term investments.

December 31, 2019,

our ownership interest in NKD Enterprises, LLC was

25.5

percent. We account for our investment by the equity method of accounting. The carrying value of NKD Enterprises, LLC is included in long-term investments and was

as of

December 31, 2019

due to losses incurred to date.

December 30, 2016

we signed an agreement to invest

$1,000,000

in a privately held technology company and program manager in the FinTech industry, with

$500,000

of the investment held in escrow to pay future fees to CoreCard pursuant to a Processing Agreement entered into by the parties. The investment was funded on

January 4, 2017.

In the quarter ended

June 30, 2018,

we recorded an impairment charge of

$250,000

to reduce the carrying value due to the investee’s limited funding to support its operation and sales and marketing efforts. CoreCard remains in an ongoing business relationship with the company pursuant to a Processing Agreement and a Program Management Services Agreement. CoreCard is positioned to assume the program management aspects of the investee company if the need should arise to ensure their program(s) ongoing viability and the completion of the Processing Agreement with CoreCard.