Note 5 - Investment in Closely Held Company

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Investments and Other Noncurrent Assets [Text Block]

5. Investment in Closely Held Company

The Company holds a

5%

equity interest in Churchill Downs Holdings Ltd (“Churchill”), a British Virgin Island business company which it received as partial consideration for the sale of substantially all of our assets during

first

quarter

2018.

The equity interest is considered a variable interest in Churchill, which the Company determined to be a variable interest entity (VIE). We concluded that we do

not

have the power to direct the activities that most significantly impact the economic performance of Churchill, and, therefore, we concluded we are

not

the primary beneficiary and accordingly have

not

consolidated Churchill. The investment in the closely held company is accounted for under the cost method, in accordance with generally accepted accounting principles. As of

June 30, 2018,

the investment had a carrying value of

$168,000,

which is reflected as an “Investment in closely held company” on the consolidated balance sheet and represents our maximum exposure to loss.