Investment in Marketable Securities

9 Months Ended

Mar. 31, 2021

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 March 31, 2021 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, along with the changes in amounts due to broker are included in earnings. Trading securities are summarized as follows:

			Gross		Gross			Net
Investment		Cost		Unrealized Gain		Unrealized Loss			Unrealized Gain (Loss)			Fair Value
As of
March 31, 2021
Corporate Equities	$	32,500,000	$	7,857,000	$	(3,361,000	)	$	4,496,000		$	36,996,000
As of
June 30, 2020
Corporate
Equities	$	11,459,000	$	902,000	$	(6,183,000	)	$	(5,281,000	)	$	6,178,000

As of March 31, 2021 and June 30, 2020, approximately 6% and 11%, respectively, of the investment in marketable securities balance above is comprised of the common stock of Comstock Mining Inc (“Comstock”). As of March 31, 2021 and June 30, 2020, the Company had $2,210,000 and $5,734,000, respectively, of unrealized losses related to securities held for over one year; of which $1,794,000 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 gains (losses) on marketable securities for the three and nine months ended March 31, 2021 and 2020, respectively:

For the three months ended March 31,		2021			2020
Realized gain (loss) on marketable securities, net	$	1,845,000		$	(1,113,000	)
Realized loss on marketable securities related to Comstock		(1,578,000	)		-
Unrealized gain (loss) on marketable securities, net		501,000			(1,254,000	)
Unrealized gain (loss) on marketable securities related to Comstock		4,870,000			(26,000	)
Net gain (loss) on marketable securities	$	5,638,000		$	(2,393,000	)

For the nine months ended March 31,	2021			2020
Realized gain (loss) on marketable securities, net	$	911,000		$	(1,190,000	)
Realized loss on marketable securities related to Comstock		(1,578,000	)		-
Unrealized gain (loss) on marketable securities, net		4,683,000			(1,375,000	)
Unrealized gain (loss) on marketable securities related to Comstock		4,921,000			(396,000	)
Net gain (loss) on marketable securities	$	8,937,000		$	(2,961,000	)