Marketable Investments

3 Months Ended

Mar. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Marketable Investments

Note 4. Marketable Investments

Investments in marketable investments at March 31, 2018 and December 31, 2017 consist of the following (in thousands):

	March 31, 2018		December 31, 2017
Corporate debt securities	$	581	$	600
Equity securities		1,132		1,256
Total	$	1,713	$	1,856

The amortized cost basis amounts, gross unrealized holding gains, gross unrealized holding losses and fair values of available-for-sale debt securities as of March 31, 2018 and December 31, 2017, are as follows (in thousands):

March 31, 2018	Amortized Cost		Gross Unrealized    Gains		Gross Unrealized    Loss		Fair Value
Corporate debt securities	$	581	$	—	$	—	$	581
Total	$	581	$	—	$	—	$	581

December 31, 2017	Amortized Cost		Gross Unrealized    Gains		Gross Unrealized    Loss		Fair Value
Corporate debt securities	$	600	$	—	$	—	$	600
Total	$	600	$	—	$	—	$	600

The following table presents the proceeds from sales of equity securities, realized gain on sale of equity securities, and unrealized net loss on equity securities as prescribed by ASC 321, “Investment - Equity Securities.” ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” was adopted on January 1, 2018, at which time a cumulative effect adjustment of $213,000 was recorded to reclassify the amount of accumulated unrealized gains related to equity securities from accumulated other comprehensive income to retained earnings.

(in thousands)	Three Months Ended March 31,
	2018			2017
Proceeds from sale of equity securities	$	—		$	—
Realized gain on sale of equity securities		—			243
Unrealized net loss on equity securities reflected in the Consolidated Statement of Operations		(124	)		—

Securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, as of March 31, 2018 and December 31, 2017 were as follows (in thousands):

March 31, 2018	Less than Twelve Months				Twelve Months or Greater					Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Equity securities		—		—		41		(72	)		41		(72	)
Total	$	—	$	—	$	41	$	(72	)	$	41	$	(72	)

December 31, 2017	Less than Twelve Months				Twelve Months or Greater					Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Equity securities		—		—		33		(117	)		33		(117	)
Total	$	—	$	—	$	33	$	(117	)	$	33	$	(117	)

Equity Securities

The Company’s equity securities include 661,076 shares of Cancer Genetics common stock and 77,922 shares of Hooper common stock. During the three months ended March 31, 2017, the Company sold 75,000 shares of Cancer Genetics common stock, which resulted in a realized gain of $0.2 million. As of March 31, 2018, the Cancer Genetics and Hooper equity securities are reflected at fair value of $1.1 million and $41,000 respectively.

Debt Securities

On July 9, 2013, the Company entered into a note purchase agreement to purchase, at par, $3.0 million of a total of $100.0 million aggregate principal amount of senior secured notes due in November 2026.  The agreement allows the first interest payment date to include paid-in-kind notes for any cash shortfall, of which the Company received $0.1 million on November 15, 2013. The notes are secured only by certain royalty and milestone payments associated with the sales of pharmaceutical products.

The senior secured notes have been placed on non-accrual status as of June 30, 2016. Total cash collected during the three months ended March 31, 2018 was $19,500, which was credited to the notes’ carrying value. As of March 31, 2018, the notes are reflected at their estimated fair value of $0.6 million.