Quarterly report pursuant to Section 13 or 15(d)

Note 11 - Investments and fair value

v3.20.2
Note 11 - Investments and fair value
 9 Months Ended
Sep. 30, 2020
Notes  
Note 11 - Investments and fair value

Note 11 – 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 following:

 

 

 

 

 

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, 2018

$

362,585

$

-

$

800,002

$

5,669

$

245,628

 

 

 

 

 

 

 

 

 

 

 

Total gains or losses

 

 

 

 

 

 

 

 

 

 

Included in earnings

(or changes in net assets)

 

(76,395)

 

-

 

(600,002)

 

-

 

(41,600)

Purchases, issuances, sales, and

settlements

 

 

 

 

 

 

 

 

 

 

Purchases

 

-

 

-

 

146,195

 

-

 

-

Issuances

 

-

 

-

 

-

 

-

 

-

Sales

 

(286,190)

 

-

 

-

 

-

 

-

Settlements

 

-

 

-

 

-

 

-

 

-

Balance at December 31, 2019

 

-

 

-

 

346,195

 

5,669

 

204,028

 

 

 

 

 

 

 

 

 

 

 

Total gains or losses

 

 

 

 

 

 

 

 

 

 

Included in earnings

(or changes in net assets)

 

(3,507)

 

-

 

-

 

(5,169)

 

-

Purchases, issuances, sales,

and settlements

 

 

 

 

 

 

 

 

 

 

Purchases

 

38,115

 

-

 

50,717

 

-

 

-

Issuances

 

-

 

-

 

-

 

-

 

-

Sales

 

-

 

-

 

-

 

-

 

-

Settlements

 

-

 

-

 

(15,383)

 

-

 

-

Balance at September 30, 2020

$

34,608

$

-

$

381,529

$

500

$

204,028

 

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 September 30, 2020 consists of the following:

 

Type

 

Amortized

Costs

 

Gross

Unrealized

Gains

 

Gross

Unrealized

Losses

 

Fair Values

NYSE listed company stock

$

38,115

$

-

$

(3,507)

$

34,608

 

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

 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

2020

 

2019

 

2020

 

2019

Net gains and losses recognized during the period on equity securities

$

(2,758)

$

(45,638)

$

(3,507)

$

(56,528)

 

 

 

 

 

 

 

 

 

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

 

-

 

-

 

-

 

50,521

 

 

 

 

 

 

 

 

 

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

$

(2,758)

$

(45,638)

$

(3,507)

$

(107,049)