OTHER INVESTMENTS

9 Months Ended

Sep. 30, 2021

Investments, All Other Investments [Abstract]

OTHER INVESTMENTS

As of September 30, 2021, the Company’s portfolio of other investments had an aggregate carrying value of approximately $4.85 million and we have committed to fund approximately $1.00 million as required by agreements with the investees. The carrying value of these investments is equal to contributions less distributions and impairment valuation adjustments, if any.

During the nine months ended September 30, 2021, we made cash contributions to other investments of approximately $504,000. This consisted of $200,000 as an addition to our existing investment in a multi-family residential building located in Hollywood, Florida, $50,000 in a new co-investment in one of the existing portfolio companies of our diversified technology fund, $50,000 in a start-up technology fund, and we committed a total of $500,000 (of which approximately $137,000 has been funded), in a new private equity fund which will invest in various technology innovators globally. We also funded approximately $67,000 in follow on commitments of existing investments.

During the nine months ended September 30, 2021, we received cash distributions from other investments of approximately $1.03 million. This included distributions of approximately $584,000 from our investment in a multi-family residential property located in Orlando, Florida which was sold during this quarter. We recognized a gain of $315,000 from this investment. We also received approximately $129,000 in distributions from a real estate fund holding investments in Asia, $78,000 in distributions from our investments in two entities that provide mortgage loans, and various small distributions totaling approximately $243,000 from other existing investments.

In August 2021, one of our other investments in a private bank located in Palm Beach, Florida merged with a publicly traded bank, and we exchanged our original shares for shares in the publicly traded bank. Accordingly, we have reclassified this investment as marketable securities, and as of September 30, 2021 this investment with historical cost basis of $35,000 has an unrealized gain of approximately $128,000.

Net income from other investments for the three and nine months ended September 30, 2021, and 2020, is summarized below:

	Three months ended				Nine months ended
	September 30,				September 30,
Investment Description	2021		2020		2021		2020
Partnerships owning real estate and related investments	$	311,000		71,000	$	361,000	$	235,000
Partnerships owning diversified businesses		17,000		-		70,000		8,000
Technology and related investments		-		-		-		14,000
Income (loss) from investment in 49% owned affiliate (T.G.I.F. Texas, Inc.)		46,000		3,000		76,000		(17,000	)
Total net income from other investments	$	374,000	$	68,000	$	507,000	$	240,000

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.

There were no Other-Than-Temporary Impairments (“OTTI”) adjustments for the three and nine months ended September 30, 2021.

For the nine months ended September 30, 2020, in accordance with ASC Topic 320-10-65, Recognition and Presentation of, we recognized a total of $315,000 OTTI 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 this quarter 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 all of 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 as a result of the economic fall out of the pandemic. 