Annual report pursuant to Section 13 and 15(d)

Note 14 - Investments and Fair Value

v3.19.1
Note 14 - Investments and Fair Value
12 Months Ended
Dec. 31, 2018
Notes  
Note 14 - Investments and Fair Value

Note 14 – Investments and fair value

 

We account for our financial assets in accordance with ASC 820, “Fair Value Measurement.” This standard defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The fair value measurement disclosures are grouped into three levels based on valuation factors: Level 1 represents assets valued at quoted prices in active markets using identical assets; Level 2 represents assets valued using significant other observable inputs, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other observable inputs; and, Level 3 represents assets valued using significant unobservable inputs.

 

The hierarchy of Level 1, Level 2 and Level 3 Assets are listed as follows:

 

 

 

 

 

Fair Value Measurement Using

 

 

Unadjusted

Quoted

Market

Prices

 

Quoted

Prices for

Identical or

Similar

Assets in

Active

Markets

 

Significant

Unobservable

Inputs

 

Significant

Unobservable

Inputs

 

Significant

Unobservable

Inputs

 

 

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

(Level 3)

 

(Level 3)

 

 

 

Investment

in

Securities

 

 

 

Contractual

interest Legal

Recovery

 

Investment in

Common Stock

Warrants

 

Other Equity

Investments

 

Balance at December 31, 2016

$

-

$

-

$

-

$

-

$

55,943

 

 

Total gains or losses

 

 

 

 

 

 

 

 

 

 

 

Included in earnings (or changes in net assets)

 

(128,623)

 

-

 

-

 

-

 

-

 

Purchases, issuances, sales, and settlements

 

 

 

 

 

 

 

 

 

 

 

Purchases

 

1,071,902

 

-

 

600,002

 

-

 

107,771

 

Issuances

 

-

 

-

 

-

 

-

 

-

 

Sales

 

(754,644)

 

-

 

-

 

-

 

-

 

Settlements

 

-

 

-

 

-

 

-

 

-

 

Balance at December 31, 2017

 

188,635

 

-

 

600,002

 

-

 

163,714

 

Total gains or losses

 

 

 

 

 

 

 

 

 

 

 

Included in earnings (or changes in net assets)

 

(62,322)

 

-

 

-

 

-

 

86,306

 

Purchases, issuances, sales, and settlements

 

 

 

 

 

 

 

 

 

 

 

Purchases

 

236,272

 

-

 

200,000

 

5,669

 

96,256

 

Issuances

 

-

 

-

 

-

 

-

 

8,351

 

Sales

 

-

 

-

 

-

 

-

 

(108,999)

 

Settlements

 

-

 

-

 

-

 

-

 

-

 

Balance at December 31, 2018

$

362,585

$

-

$

800,002

$

5,669

$

245,628

 

 

Investment in Securities

 

The amortized costs, gross unrealized holding gains, and losses, and fair values of the Company’s investment securities classified as equity securities, at fair value, at December 31, 2018 consists of the following:

 

Type

 

 Amortized Costs

 

 Gross Unrealized Gains

 

 Gross Unrealized Losses

 

 Fair Values

NASDAQ listed company stock

$

130,997

$

-

$

(33,607)

$

97,390

OTCQB listed company stock

 

259,088

 

75,318

 

(69,211)

 

265,195

 

$

390,085

$

75,318

$

(102,818)

$

362,585

 

The portion of unrealized gains and losses for the period related to equity securities still held at the reporting date is calculated as follows:

 

 

 

Year Ended December 31,

 

 

2018

 

2017

Net gains and losses recognized during the period on equity securities

$

(62,322)

$

(128,623)

 

 

 

 

 

Less: Net gains (losses) recognized during the period on equity securities sold during the period

 

-

 

(163,445)

 

 

 

 

 

Unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date

$

(62,322)

$

34,822