7. FAIR VALUE INSTRUMENTS

12 Months Ended

Dec. 31, 2011

Fair Value Disclosures [Text Block]

7. FAIR VALUE INSTRUMENTS

In accordance with ASC Topic 820, the Company measures cash and equivalents, marketable debt and equity securities and interest rate swap contract at fair value on a recurring basis. Other investments and goodwill are measured at fair value on a nonrecurring basis.

The following are the major categories of assets and liabilities measured at fair value on a recurring basis during the year ended December 31, 2011, using quoted prices in active markets for identical assets (Level 1) and significant other observable inputs (Level 2). For the year ended December 31, 2011 there were no major assets or liabilities measured at fair value on a recurring basis which use significant unobservable inputs (Level 3):

	Fair value measurement at reporting date using
	Total		Quoted Prices in Active		Significant Other		Significant
	December 31,		Markets for Identical Assets		Observable Inputs		Unobservable Inputs
Description	2011		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash equivalents:
Time deposits	$	54,104		—	$	54,104		—
Money market mutual funds		1,536,787	$	1,536,787		—		—
Marketable securities:
Corporate debt securities		885,252		—		885,252		—
Marketable equity securities		1,134,225		1,134,225		—		—
Total assets	$	3,610,368	$	2,671,012	$	939,356	$	—
Liabilities:
Interest rate swap contract		1,975,000		—		1,975,000		—
Total liabilities	$	1,975,000		—	$	1,975,000		—

Carrying amount is the estimated fair value for corporate debt securities and time deposits based on a market-based approach using observable (Level 2) inputs such as prices of similar assets in active markets. The fair value of the interest rate swap contract payable is based on value provided by issuing bank on a monthly basis.

The following are the major categories of assets and liabilities measured at fair value on a nonrecurring basis during the year ended December 31, 2011. This category includes other investments and goodwill which are measured using significant other observable inputs (Level 2) and significant unobservable inputs (Level 3):

	Fair value measurement at reporting date using								Total
	Total		Quoted Prices in Active		Significant Other		Significant		losses for
	December 31,		Markets for Identical Assets		Observable Inputs		Unobservable Inputs		year ended
Description	2011		(Level 1)		(Level 2) (a)		(Level 3) (b)		12/31/2011
Assets:
Other investments by investment focus:
Technology & Communication	$	477,646	$	—	$	477,646	$	—	$	(2,437	)
Diversified businesses		1,444,521		—		1,444,521		—		—
Real estate and related		1,523,159		—		542,478		980,681		(84,270	)
Other		300,000		—		—		300,000		—
	$	3,745,326	$	—	$	2,464,645	$	1,280,681	$	(86,707	)
Goodwill (Bayshore)		5,628,000						5,628,000		—
Total assets	$	9,373,326	$	—	$	2,464,645	$	6,908,681	$	—

(a) Other investments measured at fair value on a non-recurring basis include investments in certain entities that calculate net asset value per share (or its equivalent such as member units or an ownership interest in partners’ capital to which a proportionate share of net assets is attributed, “NAV”). This class primarily consists of private equity funds that have varying investment focus. These investments can never be redeemed with the funds. Instead, the nature of the investments in this class is that distributions are received through the liquidation of the underlying assets of the fund. If these investments were held it is estimated that the underlying assets of the fund would be liquidated over 5 to 10 years. As of December 31, 2011, it is probable that all of the investments in this class will be sold at an amount different from the NAV of the Company’s ownership interest in partners’ capital. Therefore, the fair values of the investments in this class have been estimated using recent observable information such as audited financial statements and/or statements of partners’ capital obtained directly from investees on a quarterly or other regular basis. In July 2011 the Company committed to invest $250,000 in a private equity fund which invests in power and energy real estate assets. Of the total amount committed $225,000 remains to be funded at December 31, 2011. As of December 31, 2011 the amount of the Company’s total unfunded commitments related to this category of investments is approximately $326,000.

(b) This class of other investments above which are measured on a nonrecurring basis using Level 3 unobservable inputs consist of investments primarily in commercial real estate in Florida through private partnerships and two investments in the stock of private banks in Florida and Texas. The Company does not know when it will have the ability to redeem the investments and has categorized them as a Level 3 fair value measurement. The Level 3 real estate and related investments of approximately $980,000 primarily consist of a limited partnership interest investment in a commercial building located near the Company’s offices purchased in 2005. This investment value is measured using primarily inputs provided by the managing member of the partnerships with whom the Company has done similar transactions in the past and is well known to management. The fair values of these real estate investments have been estimated using the net asset value of the Company’s ownership interest in partners’ capital. There have been no gains or losses realized or unrealized relating to these investments. The investments in private bank stocks include a private bank and trust located in Coral Gables, Florida in the amount of $250,000 made in 2009, and a $50,000 investment in a bank located in El Campo, Texas made in 2010. The fair values of these bank stock investments have been estimated using the cost method less distributions received and other than temporary impairments. This investment is valued using inputs provided by the management of the banks.

Goodwill is valued as described in our summary of significant accounting policies. For the year ended December 31, 2010 the Company recognized a loss from goodwill impairment of $2.1 million as further described in Note 1. Description of Business and Summary of Significant Account Policies. No impairment loss was recognized for the year ended December 31, 2011.