5.	Investment Securities Available For Sale

Investments in available-for-sale marketable securities at

December 31, 2016

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

$6,073,000,

an aggregate cost basis of

$5,598,000,

gross unrealized gains aggregating

$614,000

and gross unrealized losses aggregating

$139,000.

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

months as of

December 31, 2016

had an aggregate fair value and unrealized loss of

$613,000

and

$139,000,

respectively. The corresponding amounts at

March 31, 2016

were

$5,903,000

and

$163,000.

As of

December 31, 2016,

none

of the Company

’s investments in securities has been in a continuous loss for more than

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

months as of

March 31, 2016,

had an aggregate fair value and unrealized loss of

$4,711,000

and

$395,000

respectively.

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 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 investment in the common stock of Insignia Systems, Inc. (“Insignia”). 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 that the magnitude of the unrealized loss had increased sharply during the quarter ended

June 30, 2016.

While management believed that it was reasonably possible that the unrealized loss at

June 30, 2016

would reverse prior to the Company’s divestment of the security, management concluded that the weight of the evidence warranted the other-than-temporary impairment. Consistent with the applicable accounting guidance, the Company’s cost basis in the Insignia investment was lowered to

$3,604,000

June 30, 2016

to reflect the impairment charge. The fair value of the Company’s Insignia investment was

$4,034,000

as of

December 31, 2016,

reflecting an unrealized gain position of

$430,000.

As a result of the above-described Insignia other-than-temporary impairment assessment, the Company

’s condensed consolidated statements of income (loss) for the

three

months ended

June 30, 2016

and the

nine

months ended

December 31, 2016

include a non-operating charge of

$1,502,000

There was

other-than-temporary impairment charge for the corresponding prior year periods.

November 28, 2016,

Insignia announced that its Board of Directors had declared a special dividend of

$0.70

per share. On

December 13, 2016,

Insignia announced that the record date for the special dividend would be

January 6, 2017.

That is, stockholders owning Insignia shares on

January 6, 2017

would be entitled to receive the dividend. The Company

’s accounting policy for such dividends is to recognize any related income on the record date, rather than on the declaration date. As such, the Company’s condensed consolidated statements of income (loss) for the

three

and

nine

months ended

December 31, 2016

not

reflect any amount associated with this Insignia special dividend. See Note

for discussion of related

fourth

fiscal quarter accounting considerations.

With the exception of Insignia, all of the Company

’s investments in available-for-sale marketable securities are fully classified within the current asset section of the accompanying condensed consolidated balance sheets. Given the Company’s intention

not

to sell its Insignia shares for a period of at least

twelve

months, the investment was classified in non-current assets as of

March 31, 2016.

While the Company’s intention to hold the Insignia shares has

not

changed, the Company reclassified a portion of the investment to current assets in its

December 31, 2016

condensed consolidated balance sheet. The amount of this reclassification was equal to the dividend expected to be received in

January 2017.

The Company realized gains of

$583,000

and

$0,

respectively, from the sale of securities during the

nine

-month periods ended

December 31, 2016

and

December 31, 2015.

The marketable securities held by the Company as of

December 31, 2016,

and

March 31, 2016

are classified as available-for-sale securities.

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

fair value measurements.