Investment in Marketable Securities

6 Months Ended

Dec. 31, 2019

Investment In Marketable Securities

Investment in Marketable Securities

NOTE 5 – INVESTMENT IN MARKETABLE SECURITIES

The Company’s investment in marketable securities consists primarily of corporate equities. The Company has also periodically invested in corporate bonds and income producing securities, which may include interests in real estate-based companies and REITs, where financial benefit could transfer to its shareholders through income and/or capital gain.

At December 31, 2019 and June 30, 2019, all of the Company’s marketable securities are classified as trading securities. The change in the unrealized gains and losses on these investments are included in earnings. Trading securities are summarized as follows:

			Gross		Gross			Net			Fair
Investment	Cost		Unrealized Gain		Unrealized Loss			Unrealized Loss			Value
As of December 31, 2019
Corporate
Equities	$	10,576,000	$	1,672,000	$	(4,100,000	)	$	(2,428,000	)	$	8,148,000
As of June 30, 2019
Corporate
Equities	$	19,204,000	$	1,753,000	$	(11,261,000	)	$	(9,508,000	)	$	9,696,000

As of December 31, 2019, and June 30, 2019, approximately 4% and 7%, respectively, of the investment in marketable securities balance above is comprised of the common stock of Comstock Mining Inc (“Comstock”). As of December 31, 2019, and June 30, 2019, the Company had $3,845,000 and $11,088,000, respectively, of unrealized losses related to securities held for over one year; of which $3,684,000 and $10,900,000 are related to its investment in Comstock, respectively. For the six months ended December 31, 2019, the decrease in unrealized losses is a result of reclassing $7,586,000 of unrealized gain related to Comstock that was included in the cost basis as of June 30, 2019.

Net gains (losses) on marketable securities on the statement of operations is comprised of realized and unrealized gains (losses). Below is the composition of net loss on marketable securities for the three and six months ended December 31, 2019 and 2018, respectively:

For the three months ended December 31,	2019			2018
Realized (loss) gain on marketable securities, net	$	(3,000	)	$	530,000
Unrealized loss on marketable securities, net		(50,000	)		(2,475,000	)
Unrealized loss on marketable securities related to Comstock		(66,000	)		(26,000	)
Net loss on marketable securities	$	(119,000	)	$	(1,971,000	)

For the six months ended December 31,	2019			2018
Realized (loss) gain on marketable securities, net	$	(77,000	)	$	522,000
Unrealized loss on marketable securities, net		(121,000	)		(2,202,000	)
Unrealized loss on marketable securities related to Comstock		(370,000	)		(462,000	)
Net loss on marketable securities	$	(568,000	)	$	(2,142,000	)