Note 6 - Investments

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Investment Holdings [Text Block]

NOTE

6.

INVESTMENTS

Certain assets held through Willow Oak Asset Management, LLC, Enterprise Diversified, Inc., or EDI Real Estate, LLC do

not

have a readily determinable value, as these investments are

not

publicly traded, nor do they have published sales records. The investment in Alluvial Fund, LP is measured using net asset value (NAV) as the practical expedient and is exempt from the fair value hierarchy. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and allocated based on total fund contributions. Due to the nature of the Mt Melrose, LLC (subsequent to the loss of control (see Note

4

)) and Huckleberry Real Estate Fund II, LLC investments, the investments are measured at cost basis as fair value is

not

determinable until additional inputs and measurements become available. As the inputs for these investments are

not

readily observable, these investments are valued using Level

3

inputs (see Note

7

). The following investments are remeasured to fair value on a recurring basis and realized and unrealized gains and losses are recognized as revenue in the period of adjustment. Included in the fair value is the cost basis of the investment, as well as any accrued management fees.

	Cost Basis		Unrealized Gain		Fair Value
December 31, 2019
Alluvial Fund, LP	$	7,042,732	$	3,029,626	$	10,072,358
Mt Melrose, LLC		53,846		—		53,846
Total	$	7,096,578	$	3,029,626	$	10,126,204

	Cost Basis		Unrealized Gain		Fair Value
December 31, 2018
Alluvial Fund, LP	$	7,023,676	$	1,422,812	$	8,446,488
Huckleberry Real Estate Fund II, LLC		468,750		—		468,750
Total	$	7,492,426	$	1,422,812	$	8,915,238

During the year ended

December 31, 2019,

the Company recognized

$76,810

 

of realized gains, primarily related to the Company

’

s sale of its Triad Guaranty, Inc. stock. This compares to 

the year ended

December 31, 2018,

when the Company recognized

$885

of realized losses. These realized

losses were 

the result of reinvested management fee shares earned through various fee share agreements.

Alluvial Fund is a private investment partnership that focuses on investing in what it believes are deeply mispriced securities in the United States and abroad. Alluvial Fund focuses on small companies, thinly traded issues, and special situations, seeking to identify value that its management believes the market has yet to recognize. During the years ended

December 31, 2019

and

2018,

the Company did

not

withdraw management or performance fees earned through the Alluvial Fund. The total amount of these reinvested fees were

$19,056

and

$21,595,

respectively.