The Company accounts for equity securities under ASC 321. Such securities are reported at fair value on the consolidated balance sheets, and the related unrealized gains and losses are reported in the consolidated statements of cash flows as non-cash adjustments to income. Any realized and unrealized appreciation or depreciation on investment securities is reported in the consolidated statements of operations as investment income or (loss). Investment income was $45,000 and $127,000 for the quarter ended March 31, 2022 and 2021, respectively. During the three months ended March 31, 2022, the Company incurred a realized loss on marketable securities of $744,000 for the sale of 50,000 shares of IRNT common stock and related derivatives. There were no realized gains or losses for the prior year quarter. During the three months ended March 31, 2022 and 2021, unrealized gain on marketable securities was $789,000 ($775,000 for IRNT-related securities) and $127,000, respectively.

Details of marketable securities held at March 31, 2022 and December 31, 2021 are as follows (in thousands):

					Cumulative
					Unrealized
	Fair Value		Basis		(Loss) Gain
IronNet Securities:	March 31, 2022
1,288,620 common shares	$	4,897	$	27,636	$	(22,739	)
Put options		1,088		408		680
		5,985		28,044		(22,059	)
Equity funds and other securities		16,830		16,808		22
	$	22,815	$	44,852	$	(22,037	)

IronNet Securities:	December 31, 2021
1,338,620 common shares	$	5,106	$	28,696	$	(23,590	)
Put options		1,245		489		756
		6,351		29,185		(22,834	)
Equity funds and other securities		9,816		9,808		8
	$	16,167	$	38,993	$	(22,826	)

The IRNT common shares was received by the Company as a result of the previously discussed Sponsor distribution. The fair value of these shares determined at the date of distribution represents the basis of these securities.

At March 31, 2022 and December 31, 2021, the fair value of IRNT securities was determined based on their publicly quoted market price, except certain shares which had trading restrictions at the end of 2021. At December 31, 2021, the Company held 1,250,000 shares of IRNT common stock that were restricted from sale until early 2022. The fair value of these shares of restricted common stock was determined by applying a discount for lack of marketability to the publicly quoted market price of IRNT common stock at December 31, 2021.

The Company has executed derivatives transactions as part of its plan to minimize the economic risk of IRNT share price volatility to its IRNT holdings. The Company held put options, covering shares of IRNT common stock with a second quarter 2022 expiration date, for 250,000 IRNT shares and 300,000 IRNT shares at March 31, 2022 and December 31, 2021, respectively.