Note 5 - Investment Securities Available for Sale

3 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

5. Investment Securities Available For Sale

Investments in available-for-sale marketable securities at

June 30, 2016

consisted of investments in publicly traded companies and had a fair market value of

$8,384,000,

an aggregate cost basis of

$9,643,000,

gross unrealized gains aggregating

$413,000

and gross unrealized losses aggregating

$1,673,000.

Marketable securities at

March 31, 2016

consisted of investments with a fair value of

$9,656,000,

an aggregate cost basis of

$9,791,000,

gross unrealized gains aggregating

$422,000

and gross unrealized losses aggregating

$557,000.

Securities that had been in a continuous loss position for less than

12

months as of

June 30, 2016

had an aggregate fair market value and unrealized loss of

$1,182,000

and

$170,000,

respectively. The corresponding amounts at

March 31, 2016

were

$5,903,000

and

$163,000.

Securities that had been in a continuous loss position for more than

12

months as of

June 30, 2016

had an aggregate fair market value and unrealized loss of

$3,604,000

and

$1,502,000,

respectively. The corresponding amounts at

March 31, 2016

were

$4,711,000

and

$395,000.

The Company realized gains of

$144,000

and

$0,

respectively, from the sale of securities during the

three

-month periods ended

June 30, 2016

and

June 30, 2015.

The marketable securities held by the Company as of

June 30, 2016

and

March 31, 2016

are classified as available-for-sale securities. The Company does

not

intend to liquidate marketable security holdings in Insignia Systems, Inc. (“Insignia”) within the next

twelve

months; as a result, the fair value of the Company

’s investment in Insignia is classified as non-current in the

June 30, 2016

condensed consolidated balance sheet.

The Company

’s investment in Insignia at

June 30, 2016

had an aggregate cost basis of

$5,106,000

and an unrealized loss of

$1,502,000.

Any investment with a fair value of less than its cost basis is assessed for possible “other-than-temporary” impairment regularly and at each reporting date. Other-than-temporary impairments of available-for-sale marketable equity securities are fully recognized in the consolidated statement of income (loss). On the basis of its

June 30, 2016

assessment, the Company concluded that it had suffered an other-than-temporary impairment in its Insignia investment. In reaching this conclusion, management gave significant weight to the fact that, as of

June 30, 2016,

the Company’s investment in Insignia had been in a continuous unrealized loss position for well over

one

year and the magnitude of the unrealized loss had increased sharply during the quarter ended

June 30, 2016.

While management believes it is reasonably possible that the unrealized loss will reverse prior to the Company’s divestment of the security, management concluded that the weight of the evidence warranted the other-than-temporary impairment as of

June 30, 2016.

As such, the Company’s condensed consolidated statement of income (loss) for the quarter ended

June 30, 2016

includes a non-operating charge related to the Insignia securities of

$1,502,000.

There was

no

other-than-temporary impairment charge in the comparative prior quarter.

All securities are priced using publicly quoted market prices and are considered Level

1

fair value measurements.