Note 4 - Marketable Equity Securities

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

4.    MARKETABLE EQUITY SECURITIES

The Company accounts for its marketable securities in accordance with ASC Topic 321, Investments - Equity Securities. ASC Topic 321 requires companies to measure equity investments at fair value, with changes in fair value recognized in net income. The Company’s investments in marketable securities consist of equity securities with readily determinable fair values. The cost of securities sold is based on the specific identification method, and interest and dividends on securities are included in non-operating income (expense).

Marketable equity securities are carried at fair value, with changes in fair market value included in the determination of net income. The fair market value of marketable equity securities is determined based on quoted market prices in active markets. See Note 18 – Fair Value of Financial Instruments for additional information regarding the valuation of marketable equity securities.

The following table sets forth cost, market value and unrealized gain on equity securities classified as available-for-sale as of December 31, 2021 and 2020.

	2021		2020
	(in thousands)
Available-for-sale securities:
Fair market value	$	39,424	$	27,941
Cost		29,385		25,860
Unrealized gain	$	10,039	$	2,081

The following table sets forth the gross unrealized gains and losses on the Company’s marketable securities as of December 31, 2021 and 2020.

	2021		2020
	(in thousands)
Available-for-sale securities:
Gross unrealized gains	$	12,458	$	7,048
Gross unrealized losses		2,419		4,967
Net unrealized gains	$	10,039	$	2,081

For the years ended December 31, 2021, 2020 and 2019, the Company recognized dividends of approximately $1,448,000, $1,266,000, and $1,309,000 in non-operating income in its statements of operations, respectively.

The following table shows the Company’s net realized (losses) gains during 2021, 2020 and 2019 on certain marketable equity securities.

	2021			2020			2019
	(in thousands)
Realized (losses) gains:
Sale proceeds	$	3,109		$	2,039		$	2,984
Cost of securities sold		3,199			2,216			1,929
Realized (losses) / gains	$	(90	)	$	(177	)	$	1,055

At December 31, 2021, the Company’s investments’ approximate fair value of securities in a loss position and related gross unrealized losses were $7,373,000 and $2,419,000, respectively. At December 31, 2020, the Company’s investments’ approximate fair value of securities in a loss position and related gross unrealized losses were $10,221,000 and $4,967,000, respectively.

The market value of the Company’s equity securities are periodically used as collateral against any outstanding margin account borrowings. As of December 31, 2021 and 2020, the Company had outstanding borrowings of $1,214,000 and $11,251,000 under its margin account, respectively, which is reflected in accrued expenses. The interest rates on margin account borrowings were 0.68% and 0.75% as of December 31, 2021 and 2020, respectively.