NOTE 2 INVESTMENTS

The Company’s investment portfolio consists of marketable equity securities and warrants of certain publicly-traded companies. The Company classifies the marketable equity securities as available-for-sale securities, which are recorded at fair value based upon quoted market prices. The warrants are recorded at fair value using the Black-Scholes option pricing model. The following is a summary of the balances as of March 31, 2017 and December 31, 2016:


							Other		Statement of
	Opening		Additions		Disposals		Comprehensive		Operations		Fair Value
	balance		during		during		Income (Loss)		(Loss)		end of the
As of March 31, 2017	(January 1)		period		period		(pre-tax)		Income		period
Marketable equity securities	$	6,749	$	—	$	—	$	4,995	$	—	$	11,744
Warrants		1,794		—		—		—		1,791		3,585
Investments	$	8,543	$	—	$	—	$	4,995	$	1,791	$	15,329


							Other		Statement of
	Opening		Additions		Disposals		Comprehensive		Operations		Fair Value
	balance		during		during		Income (Loss)		(Loss)		end of the
As of December 31, 2016	(January 1)		year		year		(pre-tax)		Income		year
Marketable equity securities	$	1,032	$	4,004	$	(470)	$	3,043	$	(860)	$	6,749
Warrants		—		415		—		—		1,379		1,794
Investments	$	1,032	$	4,419	$	(470)	$	3,043	$	519	$	8,543

As of March 31, 2017, the cost of the marketable equity securities and warrants was approximately $4.9 million (December 31, 2016 - $4.9 million).

The Company maintains a portfolio of warrants on equity interest in publicly traded securities for investment purposes. As the warrants meet the definition of derivative instruments, unrealized gains or losses arising from their revaluation are recorded in the Consolidated Statement of Operations and Comprehensive Income (Loss). During the three months ended March 31, 2017, the Company recorded an unrealized gain of $1.8 million (March 31, 2016 - $nil).

The gains and losses for available-for-sale securities are included in other comprehensive income and not reported in Net Income (Loss) unless the securities are sold or if there is an other-than- temporary decline in fair value below cost.

During the three months ended March 31, 2017, the Company reviewed its investment portfolio to determine if any security was other-than-temporarily impaired (“OTTI”). An OTTI security would require the Company to record an impairment charge in the statement of operations in the period any such determination is made. In making this determination, the Company evaluated, among other things, the duration and extent to which the fair value of a security was less than its cost; the financial condition of the issuer and any changes thereto; and the Company’s intent to sell, or whether it will more likely than not be required to sell, the security before recovery of its amortized cost basis. From this assessment, the Company concluded that none of its marketable equity securities were considered OTTI (March 31, 2016 - $0.3 million).

The Company recorded a gain, net of tax, in other comprehensive income, of $3.9 million ($5.0 million pre-tax) for the three months ended March 31, 2017. The gain was recorded in accumulated other comprehensive income and is reported as a separate line item in the shareholders' equity section of the balance sheet. During the three months ended March 31, 2016, the Company recognized a loss, net of tax, in other comprehensive loss of $0.1 million.