Investment in Marketable Securities, Net

6 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Investment in Marketable Securities, Net

NOTE 6 – INVESTMENT IN MARKETABLE SECURITIES, NET

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		Gross			Net
Investment	Cost		Unrealized Gain		Unrealized Loss			Unrealized Loss			Fair Value
As of December 31, 2020
Corporate
Equities	$	4,449,000	$	141,000	$	(3,876,000	)	$	(3,735,000	)	$	714,000
As of June 30, 2020
Corporate
Equities	$	5,788,000	$	108,000	$	(5,026,000	)	$	(4,918,000	)	$	870,000

As of December 31, 2020 and June 30, 2020, approximately 55% and 59%, respectively, of the investment marketable securities balance above is comprised of the common stock of Comstock Mining, Inc. (“Comstock” – NYSE AMERICAN: LODE).

As of December 31, 2020, the Company’s entire marketable securities portfolio consists of 19,282 shares of Comstock which were owned directly by the Company.

As of December 31, 2020 and June 30, 2020, the Company had $3,876,000 and $5,015,000, respectively, of unrealized losses related to securities held for over one year; of which $3,840,000 and $4,928,000 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 the net gains (losses) 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) gain on marketable securities, net	$	(1,053,000	)	$	51,000
Unrealized gain (loss) on marketable securities, net		1,148,000			(82,000	)
Unrealized loss on marketable securities related to Comstock		(36,000	)		(48,000	)
Net income (loss) on marketable securities	$	59,000		$	(79,000	)

For the six months ended December 31,	2020			2019
Realized (loss) gain on marketable securities, net	$	(1,029,000	)	$	47,000
Unrealized gain (loss) on marketable securities, net		1,150,000			(144,000	)
Unrealized gain (loss) on marketable securities related to Comstock		34,000			(273,000	)
Net income (loss) on marketable securities	$	155,000		$	(370,000	)