Investment in Marketable Securities

6 Months Ended

Dec. 31, 2020

Investment In Marketable Securities

Investment in Marketable Securities

NOTE 6 – 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, 2020 and June 30, 2020, 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
			Unrealized		Gross			Net			Fair
Investment	Cost		Gain		Unrealized Loss			Unrealized Loss			Value
As of
December 31, 2020
Corporate Equities	$	23,018,000	$	4,001,000	$	(5,011,000	)	$	(1,010,000	)	$	22,008,000
As of
June 30, 2020
Corporate Equities	$	11,459,000	$	902,000	$	(6,183,000	)	$	(5,281,000	)	$	6,178,000

As of December 31, 2020 and June 30, 2020, approximately 3% and 11%, respectively, of the investment in marketable securities balance above is comprised of the common stock of Comstock Mining Inc (“Comstock”). As of December 31, 2020 and June 30, 2020, the Company had $4,472,000 and $5,734,000, respectively, of unrealized losses related to securities held for over one year; of which $4,322,000 and $5,427,000 are related to its investment in Comstock, respectively.

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, 2020 and 2019, respectively:

For the three months ended December 31,	2020			2019
Realized loss on marketable securities, net	$	(672,000	)	$	(3,000	)
Unrealized gain (loss) on marketable securities, net		4,173,000			(50,000	)
Unrealized loss on marketable securities related to Comstock		(44,000	)		(66,000	)
Net gain (loss) on marketable securities	$	3,457,000		$	(119,000	)

For the six months ended December 31,	2020			2019
Realized loss on marketable securities, net	$	(934,000	)	$	(77,000	)
Unrealized gain (loss) on marketable securities, net		4,182,000			(121,000	)
Unrealized gain (loss) on marketable securities related to Comstock		51,000			(370,000	)
Net gain (loss) on marketable securities	$	3,299,000		$	(568,000	)