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Note 3 - Investments
3 Months Ended
Mar. 31, 2013
Investment [Text Block]
3. INVESTMENTS

TANGO ME, INC.

On March 30, 2012, the Company purchased 468,121 shares of Series A Preferred stock from William R. Hambrecht at $2.1362 per share ($1,000,000). The value of this transaction was determined using the fair value of similar securities sold to unrelated third parties. There was no change in the fair value of this investment to March 31, 2013.

SALON MEDIA GROUP, INC.

The Company owns 843 shares of Series C Preferred Stock of Salon Media Group, Inc. (“Salon”).  These shares resulted from the December 31, 2003 conversion of Convertible Promissory Notes purchased by the Company and are convertible to common stock at any time. The Series C Preferred Stock is convertible into common stock of Salon at the conversion rate determined by dividing the Series C Preferred Stock per share price of $800 by the Series C Conversion Price of $0.80, or at the rate of one share of Series C Preferred Stock to 1,000 shares of common stock. If converted, the Company’s shares of Series C Preferred Stock represent 843,000 common shares of Salon, or 7.4% of Salon’s common stock outstanding as of March 31, 2013. The investment in Series C Preferred Stock of Salon is valued at the converted common stock value of $.10 and $.09 per share, or $84,300 and $75,870 at March 31, 2013 and December 31, 2012, respectively. For the three months ended March 31, 2013, the Company recorded a related unrealized gain of $8,430.

Additionally, in conjunction with making the investment in Salon, the Company received warrants to purchase common stock in Salon. In 2006, the Company exercised its warrants to purchase a total of 79,970 shares of common stock of Salon. The investment in common shares of Salon is valued at $.10 and $.09 per share, or $7,997 and $7,198 at March 31, 2013 and December 31, 2012, respectively. For the three months ended March 31, 2013, the Company recorded a related unrealized gain of $799.

The quoted market price for the Salon Media Group at March 31, 2012 was $.25; however, as we recorded an other-than-temporary loss on these securities in 2009 (down to $.10 per share), we did not adjust the carrying value for this subsequent recovery in value.

Flexi

The Company owns 78,000 shares of Flexi International Software stock and accounts for this investment as an available-for-sale security on its balance sheet. The investment in common shares of Flexi is valued at $.08 and $.11 per share, or $6,240 and $8,580 at March 31, 2013 and December 31, 2012, respectively. For the three months ended March 31, 2013, the Company recorded a related unrealized loss of $2,340.