Investments

The following tables report the cost and carrying value of available-for-sale investments at September 30, 2014, and December 31, 2013 (in thousands):



September 30, 2014	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Carrying Value

Debt securities: corporate bonds	$	8,426	$	222	$	(61	)	$	8,587
Marketable equity securities	20,835		9,921		(46		)	30,710
Total	$	29,261	$	10,143	$	(107	)	$	39,297



December 31, 2013	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Carrying Value

Debt securities: corporate bonds	$	8,988	$	213	$	(29	)	$	9,172
Marketable equity securities	31,023		10,835		(450		)	41,408
Total	$	40,011	$	11,048	$	(479	)	$	50,580

The following tables summarize the market value of those investments in an unrealized loss position for periods less than or greater than 12 months (in thousands):



	September 30, 2014				December 31, 2013
Less than 12 months	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
Debt securities: corporate bonds	$	3,088	$	61
Marketable equity securities	2,015		26		$	4,453	$	254
Total	$	5,103	$	87	$	4,453	$	254



	September 30, 2014				December 31, 2013
Greater than 12 months	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
Debt securities: corporate bonds					$	5,744	$	29
Marketable equity securities	$	241	$	20	2,368		196
Total	$	241	$	20	$	8,112	$	225

The amortized cost and carrying value of investments in debt securities, by contractual maturity, are shown below. Actual maturity dates may differ from contractual maturity dates because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands):



	September 30, 2014				December 31, 2013
	Amortized Cost		Carrying Value		Amortized Cost		Carrying Value
Due in one year or less	$	3,165	$	3,356	$	68	$	68
Due after one year through five years	2,533		2,552		5,981		6,178
Due after five years	2,728		2,679		2,939		2,926
	$	8,426	$	8,587	$	8,988	$	9,172

Marketable Equity Securities

The Company’s investment in marketable equity securities was $30.7 million at September 30, 2014, and principally consisted of common stock of publicly traded small-capitalization companies in the U.S. and select foreign markets. At September 30, 2014, the Company reviewed its equity securities in an unrealized loss position and concluded certain of such securities were not other-than-temporarily impaired as the declines were not of sufficient duration and severity, and publicly-available financial information, collectively, did not indicate impairment. The primary cause of the loss on those securities was normal market volatility. The securities that were deemed other-than-temporarily impaired were recorded as an impairment loss in the period. No material impairment losses were recorded during the three and nine months ended September 30, 2014, and 2013.

Debt Securities

The Company owns corporate bonds and other debt securities, which are purchased based on the maturity and yield-to-maturity of the bond and an analysis of the fundamental characteristics of the issuer. At September 30, 2014, there were unrealized losses on certain bonds in the portfolio. The Company does not consider those bonds to be other-than-temporarily impaired because the Company expects to hold, and will not be required to sell, these particular bonds, and it expects to recover the entire amortized cost basis at maturity. There were no impairment losses recorded on debt securities during the three and nine months ended September 30, 2014, and 2013.

Other Investments

At September 30, 2014, the Company’s equity investment in Mindjet, Inc. (“Mindjet”) represented 28.6% of the voting interest, which was comprised of 15.1% from common shares and 13.5% from preferred shares. The Company accounts for the investment in common stock using the equity method of accounting, which resulted in a loss of $410,000 and $1.6 million for the three and nine months ended September 30, 2014, respectively, which is reported in the condensed consolidated statement of operations and comprehensive income or loss. The equity in loss of affiliate represents the Company’s ownership the common share vote and is 15.1% of Mindjet’s net loss for the three and nine months ended September 30, 2014. The investment in preferred stock is held at cost in the accompanying condensed consolidated balance sheet.

During the nine months ended September 30, 2014, the Company purchased $1.9 million of convertible debt of Mindjet, and deposited $761,000 in escrow for potential future purchases of the convertible debt conditioned on the operating results achieved by Mindjet. The debt security is reported in investments and the escrowed funds are reported in other assets at September 30, 2014. The debt is due in March 2015, bears interest at 10% per year, and will convert to additional common or preferred equity, or potentially cash equal to three times the face value of the debt depending on the nature and valuation of certain future transactions including an offering of Mindjet’s securities in a private or initial public offering, or sale of the company.

At September 30, 2014, the total carrying value of the Company’s debt and equity investment in Mindjet is $26.2 million and is subject to impairment testing at each reporting period, or more frequently if facts and circumstances indicate the investment may be impaired. Certain financial results reported during the nine months ended September 30, 2014 indicated the investment might be impaired; however, estimates of the value of the enterprise indicated that the investment balance would be recovered. Nonetheless, it is reasonably possible that given the volatile nature of software businesses that circumstances may change in the future which could require the Company to write down the investment to fair value.

During the three months ended September 30, 2014 the Company was notified by Mindjet that they were asserting a breach in the representations and warranty made by Spigit, Inc. (“Spigit”) in the September 10, 2013 merger agreement. As part of the notification, Mindjet made a claim against the Mindjet shares held by the former Spigit shareholders, including the Company. A partial settlement was reached by the parties in November 2014 and the Company expects final resolution in 2015. The partial settlement was not material to the Company and was paid in shares of Mindjet. The maximum damages to the Company for the remaining claim is estimated between zero and $1.2 million and any settlement would be paid by the Company in shares of Mindjet. The Company is unable to provide a more meaningful estimate due to the ongoing development of information important to resolving the matter. Consequently, the Company has not accrued any liability related to the claim.