OTHER INVESTMENTS

12 Months Ended

Dec. 31, 2020

Investments, All Other Investments [Abstract]

4. OTHER INVESTMENTS

The Company’s other investments consist primarily of nominal equity interests in various privately held entities, including limited partnerships whose purpose is to invest venture capital funds in growth-oriented enterprises. The Company does not have significant influence over any investee and the Company’s investment typically represents less than 5% of the investee’s ownership. These investments do not meet the criteria of accounting under the equity method and accordingly are carried at cost less distributions and other than temporary unrealized losses.

The Company’s portfolio of other investments consists of 46 individual investments primarily in limited partnerships with varying investment objectives and focus. Management has categorized these investments by investment focus: technology and communications, diversified businesses, real estate related and other.

As of December 31, 2020, and 2019, other investments had an aggregate carrying value of $4.94 million and $5.59 million, respectively. As of December 31, 2020, the Company has committed to fund an additional $653,000 as required by agreements with current investees or for new investments. The carrying value of these investments is equal to contributions less distributions and other than temporary impairment loss adjustments. During the years ended December 31, 2020 and 2019 the Company made cash contributions in these investments of approximately $414,000 and $1.0 million, respectively, and received cash distributions of $750,000 and $2.1 million, respectively.

The Company’s other investments are summarized below.

	Carrying values as of December 31,
Investment Focus	2020		2019

Real estate and related	$	3,061,000	$	3,378,000

Diversified businesses		1,844,000		2,043,000

Technology and communications		-		130,000

Other (private bank)		35,000		35,000

Totals	$	4,940,000	$	5,586,000

Income from other investments is summarized below (excluding other than temporary impairment loss):

	2020			2019
Real estate and related (a)	$	252,000			668,000
Diversified businesses (b)		49,000			113,000
Technology and related		17,000			-
(Loss) income from investment in 49% owned affiliate (c)		(15,000	)		25,000
Total income from other investments	$	303,000		$	806,000

(a) The gains in 2020 and 2019 consist of various cash distributions primarily from investments owning real estate and related investments and diversified businesses which made cash distributions from the sale or refinancing of operating companies or properties. During the year ended December 31, 2020, we received cash distributions from other investments of approximately $749,000. In 2020, we received a total of approximately $123,000 from a partnership which sold the remaining of its two rental apartments in Atlanta, Georgia and we recognized a gain of $123,000 (the other rental apartment was sold in December 2019 at a gain of $109,000 and we had no remaining basis in the second apartment building). In 2020, we received a total of approximately $65,000 from investments in two collateralized mortgage entities. This included a $31,000 profit distribution from the satisfaction of one residential mortgage and regular quarterly 8% preferred returns of approximately $34,000. The remaining gains from real estate and related investments were from distributions made in excess of our carrying value. The gains in 2019 primarily consisted of $429,000 from a partnership which sold its sole asset, a multifamily residential property located in Austin, Texas.

(b) The gain from investments in diversified businesses in 2020 primarily consists of $43,000 in distributions from a private equity fund in excess of our carrying value. The gains in 2019 primarily consists $66,000 from our redemption of a stock fund and cash distributions from various investments in partnerships owning diversified businesses which made cash distributions in excess of their carrying value.

(c) The increased net loss in 2020 as compared to 2019 from the Company’s 49% owned affiliate, T.G.I.F. Texas, Inc. (“TGIF”) was primarily due to less interest income earned by TGIF due to lower loan balances outstanding and lower interest rates. In 2020 and 2019 TGIF declared and paid a cash dividend of which the Company’s portion was approximately $221,000 in each year. These dividends were recorded as reduction in the investment carrying value as required under the equity method of accounting for investments (reference is made to Note 6, Investment in Affiliate).

Other than temporary impairment losses from other investments

The Company regularly reviews the underlying assets in its investment portfolio for events, including but not limited to bankruptcies, closures and declines in estimated fair value, that may indicate the investment has suffered other-than-temporary decline in value. When a decline is deemed other-than-temporary, an investment loss is recognized.

For year ended December 31, 2020, we have recognized a total of approximately $407,000 in impairment valuation adjustments in other investments. We recorded a total of $232,000 in OTTI adjustments representing the complete write down relating to an investment in a small business investment company licensed by the Small Business Administration in which we originally invested $300,000 in 2007 and had received distributions to date of $68,000. The other OTTI adjustment in 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 (plus recallable distributions) in September 2015. To date we have funded $658,000 and have received $206,000 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 carrying value in this investment as of December 31, 2020 is $277,000 and are valued on a nonrecurring basis as a Level 3 investment.

There were no OTTI losses for the year ended December 31, 2019.

Net gain or loss from other investments may fluctuate significantly from period to period in the future and could have a significant impact on the Company’s net earnings. However, the amount of investment gain or loss from other investments for any given period has no predictive value and variations in amount from period to period have no practical analytical value.

Unrealized losses from other investments

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

	As of December 31, 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 diversified businesses	$	576,000	$	(131,000	)	$	-		-		576,000		(131,000	)
Total	$	576,000	$	(131,000	)	$	-	$	-	$	576,000	$	(131,000	)

	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 real estate and related	$	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	)