INVESTMENT IN MARKETABLE SECURITIES

9 Months Ended

Mar. 31, 2022

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, 2022 and June 30, 2021, 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:

Investment	Cost		Gross Unrealized Gain		Gross Unrealized Loss			Net Unrealized Gain		Fair Value
As of
March 31, 2022
Corporate
Equities	$	22,825,000	$	3,887,000	$	(1,171,000	)	$	2,716,000	$	25,541,000
As of
June 30, 2021
Corporate
Equities	$	29,816,000	$	8,634,000	$	(2,658,000	)	$	5,976,000	$	35,792,000

As of June 30, 2021, approximately 4% of the investment in marketable securities balance above is comprised of the common stock of Comstock Mining Inc. (“Comstock” - NYSE AMERICAN: LODE). As of March 31, 2022, the Company does not have any investment in the common stock of Comstock. The Company’s director and Chairman of the Audit Committee, William J. Nance, serves as Comstock’s director and Chairman of the Audit and Finance, Compensation and Nominating and Governance Committees of Comstock.

As of March 31, 2022 and June 30, 2021, the Company had $148,000 and $2,176,000, respectively, of unrealized losses related to securities held for over one year; of which $0 and $1,933,000 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 (losses) gains on marketable securities for the three and nine months ended March 31, 2022 and 2021, respectively:

For the three months ended March 31,	2022		2021
Realized gain on marketable securities, net	$	127,000	$	1,845,000
Realized loss on marketable securities related to Comstock		-		(1,578,000	)
Unrealized gain on marketable securities, net		779,000		501,000
Unrealized gain on marketable securities related to Comstock		-		4,870,000
Net gain on marketable securities	$	906,000	$	5,638,000

For the nine months ended March 31,	2022			2021
Realized gain on marketable securities, net	$	1,707,000		$	911,000
Realized loss on marketable securities related to Comstock		(2,581,000	)		(1,578,000	)
Unrealized (loss) gain on marketable securities, net		(2,739,000	)		4,683,000
Unrealized gain on marketable securities related to Comstock		-			4,921,000
Net (loss) gain on marketable securities	$	(3,613,000	)	$	8,937,000