Note 4 - Investments

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Investment [Text Block]

4. INVESTMENTS

We hold a 40 percent ownership interest in a privately held identity and professional services company with ties to the FinTech industry. The carrying value of our investment was $1,479,000 at September 30, 2022, included in investments on the Consolidated Balance Sheets. In 2021, the company transferred its advisory business to a new entity. We contributed our note receivable of $2,806,000 and $800,000 of cash for a 28% ownership interest in the new entity. The carrying value of our investment in the new entity was $4,070,000 at September 30, 2022, included in investments on the Consolidated Balance Sheets. We continue to hold a 40 percent ownership interest in the original company which is expected to continue with its events and media operations. We account for our investments using the equity method of accounting which resulted in income of $38,000 and $195,000 for the three and nine months ended September 30, 2022, respectively, included in investment income (loss) on the Consolidated Statement of Operations. We evaluate on a continuing basis whether any impairment indicators are present that would require additional analysis or write-downs of the investment. While we have not recorded an impairment related to these investments as of September 30, 2022, variations from current expectations could result in future impairment charges.

In the second quarter of 2021, we invested $1,000,000 in a privately held company that provides supply chain and receivables financing. The carrying amount of $1,000,000 at September 30, 2022 is accounted for at cost and is included in investments on the Consolidated Balance Sheets.

In the third quarter of 2022, we invested $988,000 in publicly traded multi sector corporate debt securities. The carrying value of $983,000 at September 30, 2022 is accounted for at amortized cost and is included in marketable securities on the Consolidated Balance Sheets.