Note 4 - Investments

3 Months Ended

Mar. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

4. Investments

The investments consist of available-for-sale marketable securities and non-trading common stock warrants. As of December 31, 2013, investments totaled $1,606,000, which consisted of marketable securities of $1,256,000 and common stock warrants of $350,000. As of March 31, 2014, investments totaled $2,231,000, which consisted of only available-for-sale marketable securities.

The following provides information regarding the Company’s marketable securities as of March 31, 2014 and December 31, 2013:

	March 31,		December 31,
	2014		2013
Cost basis	$	358,000	$	255,000
Unrealized gains included in accumulated other comprehensive income		1,493,000		1,001,000
Realized gains previously recognized as warrants		380,000		-
Fair value	$	2,231,000	$	1,256,000

Certain marketable securities were sold in the first quarter of 2014, and no marketable securities were sold during the year ended December 31, 2013. Realized gains recognized during the first quarter of 2014 were $161,000 ($104,000 net of tax, which is the amount reclassified out of accumulated other comprehensive income). Unrealized gains of $338,000 and $47,000 on the statements of comprehensive income are presented net of tax. Taxes on the unrealized gains were $155,000 and $28,000, for the three months ended March 31, 2014 and 2013, respectively.

Prior to the first quarter of 2014, the Company held warrants to purchase up to 167,500 shares of common stock of an entity which were set to expire in September 2014; the Company exercised all of the warrants in the first quarter of 2014. Prior to the exercise, the Company recognized $30,000 in income during the three months ended March 31, 2014 based upon the appreciation in the fair value of the underlying common stock.