OTHER INVESTMENTS

9 Months Ended

Sep. 30, 2020

Investments, All Other Investments [Abstract]

7.	OTHER INVESTMENTS

As of September 30, 2020, the Company’s portfolio of other investments had an aggregate carrying value of approximately $4.94 million and we have committed to fund approximately $668,000 as required by agreements with the investees. The carrying value of these investments is equal to contributions less distributions and loss valuation adjustments, if any.

During the nine months ended September 30, 2020, we made cash contributions to other investments of approximately $227,000. This consisted of $100,000 as an addition to our existing investment in a private lending fund and approximately $127,000 in follow on commitments of existing investments.

During the nine months ended September 30, 2020, we received cash distributions from other investments of approximately $598,000. This primarily consisted of distributions from three existing investments. In July and August 2020, we received approximately $131,000 from an investment in a collateralized mortgage entity which made a return of capital distribution of $100,000 plus a $31,000 profit distribution from the satisfaction of one residential mortgage. In April 2020, one investee in a technology related venture fund completed the sale of its investment in a leading multinational developer and provider of sustainable water and we received $126,000. In January 2020, a real estate and related investee sold its remaining rental apartment building located in Atlanta, Georgia and we received $121,000.

In August 2020, one of our other investments in a real estate partnership with a carrying value of $221,000 filed an initial public offering and began trading on the NYSE on August 13, 2020. We have reclassified that investment to marketable securities, and as of September 30, 2020 has an unrealized loss of approximately $65,000.

As previously reported, in the first quarter of 2019 the Company’s $300,000 investments in a private insurance company publicly registered all shares and began trading on the NASDAQ on March 29, 2019. This investment is included in marketable securities, and as of June 30, 2020, had an unrealized loss of approximately $128,000.

Net income from other investments for the three and nine months ended September 30, 2020 and 2019, is approximately as follows:

	Three months ended September 30,					Nine months ended September 30,
Description	2020			2019		2020			2019
Partnerships owning real estate and related	$	71,000		$	409,000	$	235,000		$	536,000
Partnerships owning diversified businesses		-			61,000		8,000			97,000
Technology and related investments		-			-		14,000			-
Income from investment in 49% owned affiliate (T.G.I.F. Texas, Inc. “TGIF”)		(3,000	)		9,000		(17,000	)		21,000
Total net income from other investments	$	68,000		$	479,000	$	240,000		$	654,000

The following tables present approximate gross unrealized losses and fair values for those investments that were in an unrealized loss position as of September 30, 2020 and December 31, 2019, aggregated by investment category and the length of time that investments have been in a continuous loss position:

	As of September 30, 2020
	12 Months or Less					Greater than 12 Months				Total
Investment Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Partnerships owning investments in technology related industries	$	-	$	-		$	-	$	-	$	-	$	-
Partnerships owning investments in diversified businesses		781,000		(147,000	)		-		-		781,000		(147,000	)
Total	$	781,000	$	(147,000	)	$	-	$	-	$	781,000	$	(147,000	)

	As of December 31, 2019
	12 Months or Less					Greater than 12 Months					Total
Investment Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Partnerships owning investments in technology related industries	$	169,000	$	(52,000	)	$	-	$	-		$	169,000	$	(52,000	)
Partnerships owning investments in diversified businesses		363,000		(57,000	)		188,000		(45,000	)		551,000		(102,000	)
Total	$	532,000		(109,000	)		188,000	$	(45,000	)	$	720,000	$	(154,000	)

When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s amortized cost basis.

For the nine months ended September 30, 2020, in accordance with ASC Topic 320-10-65, Recognition and Presentation of Other-Than-Temporary Impairments (“OTTI”), we have recognized a total of $315,000 in impairment valuation adjustments. In the second quarter of 2020, we recorded two OTTI adjustments. One for $90,000 which was an additional write down relating to the investment in a small business investment company licensed by the Small Business Administration in which we invested $300,000 in 2007. Distributions to date from this investment total $68,000. We wrote this investment down by $50,000 in the first quarter of 2020. The carrying value of this investment is $92,000 after the OTTI adjustments. The other OTTI adjustment in the second quarter of 2020 was for $175,000 for an investment in a $2 billion global fund which invests in oil exploration and production which we committed $500,000 in September 2015. To date we have funded substantially our commitment and have received $205,000 in distributions from this investment. The write down was based on net asset value reported by the sponsor and takes into consideration the current disruptions in the oil markets because of the economic fall out of the pandemic. The adjusted value in this investment as of September 30, 2020 is $162,000.

There were no OTTI valuation adjustments for the three months ended September 30, 2020 and for the nine months ended September 30, 2019.