Note 4 - Investments

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

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

4. Investments

As of September 30, 2015 and December 31, 2014, investments totaled $826,000 and $2,840,000, respectively, which consisted of marketable securities.

The following provides information regarding the Company’s marketable securities as of September 30, 2015 and December 31, 2014:

	September 30,		December 31,
	2015		2014
Cost basis	$	363,000	$	327,000
Gains previously recognized on warrants		380,000		380,000
Gains included in accumulated other comprehensive income		83,000		2,133,000
Fair value	$	826,000	$	2,840,000

No marketable securities were sold during the three and nine months ended September 30, 2015. Marketable securities were sold during the nine months ended September 30, 2014, which resulted in $440,000 of proceeds and realized gains included in earnings of $379,000, $245,000 net of tax. The change in unrealized loss of $452,000 and $278,000 for the three months ended September 30, 2015 and 2014, respectively, in the statements of comprehensive income (loss) are presented net of tax for the quarters ended September 30, 2015 and 2014, respectively. The tax benefit on the unrealized loss was $238,000, and $153,000 for the quarters ended September 30, 2015 and 2014, respectively. The change in unrealized loss of $1,321,000 and unrealized gains of $728,000 for the nine months ended September 30, 2015 and 2014, respectively, in the statements of comprehensive income (loss) are presented net of tax for the nine months ended September 30, 2015 and 2014, respectively. The tax benefit on the unrealized loss was $728,000, and the tax expense on unrealized gains was $234,000 for the nine months ended September 30, 2015 and 2014, respectively.

The Company held warrants to purchase common stock in an entity that were exercisable for up to 167,500 shares of the entity. During 2014, all warrants were exercised. The following provides information regarding the Company’s investment in common stock warrants for the nine months ended September 30, 2015 and 2014:

	For the Nine Months Ended
	September 30,
	2015		2014
Beginning balance	$	-	$	350,000
Fair value change in common stock warrants		-		30,000
Fair value of warrants exercised		-		(380,000	)
Ending balance	$	-	$	-