NOTE 2 INVESTMENTS

The Company’s investment portfolio consists of marketable equity securities and warrants of certain publicly-traded companies. The Company classifies marketable equity securities as available-for-sale securities and warrants on equity interests in publicly-traded securities as held for trading securities. Marketable equity securities are recorded at fair value based upon quoted market prices, and warrants are recorded at fair value using the Black-Scholes option pricing model. The following is a summary of the balances of investments as of September 30, 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 September 30, 2017	(January 1)		period		period		(pre-tax)		Income		period
Marketable equity securities	$	6,749	$	—	$	(2,155)	$	2,217	$	484	$	7,295
Warrants		1,794		—		—		—		136		1,930
Investments	$	8,543	$	—	$	(2,155)	$	2,217	$	620	$	9,225


							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 September 30, 2017, the cost of the marketable equity securities, net of impairment charges, and warrants was approximately $3.3 million (December 31, 2016 - $4.9 million).

The Company maintains a portfolio of warrants on equity interests in publicly-traded securities for investment purposes which are not used in any hedging activities. 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 (Loss) Income. During the three and nine months ended September 30, 2017, the Company recorded an unrealized loss of $0.9 million and an unrealized gain of $0.1 million respectively, compared to an unrealized loss of $0.2 million and unrealized gain of $1.5 million for the three and nine months ended September 30, 2016.

In addition, during the nine months ended September 30, 2017, the Company sold marketable equity securities for proceeds of $2.2 million. The Company realized a gain of $0.8 million, which is included in the Consolidated Statement of Operations and Comprehensive (Loss) Income. In the comparative nine months ended September 30, 2016, the Company realized a gain of $0.1 million on marketable equity securities sold.

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

During the nine months ended September 30, 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 Consolidated Statement of Operations and Comprehensive (Loss) Income in the period if such determination is made. In making this judgment, the Company evaluated, among other things, the duration and extent, if any, 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 the fair value of certain marketable equity securities exhibited a prolonged decline in share price due to deterioration of the issuer’s results; therefore, the decline in these marketable equity securities was considered OTTI. Accordingly, the Company recognized an OTTI impairment loss of $0.4 million on the Consolidated Statement of Operations and Comprehensive (Loss) Income, for the three and nine months ended September 30, 2017. In the comparative period, the Company recorded an OTTI impairment loss of $nil and $0.9 million for the three and nine months ended September 30, 2016, respectively.

For the remaining marketable equity securities, the Company recorded an unrealized loss, net of tax, of $1.6 million and unrealized gain, net of tax, of $2.1 million for the three and nine months ended September 30, 2017, respectively. During the three and nine months ended September 30, 2016, the Company recognized unrealized gain of $0.3 million and $1.8 million, respectively, net of taxes.