Note 7 - Equity Method and Other Investments and Related Commitments and Contingent Liabilities Including Guarantees

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

Note

7

–

EQUITY

METHOD

AND

OTHER

INVESTMENTS AND RELATED COMMITMENTS AND CONTINGENT LIABILITIES INCLUDING GUARANTEES

The Company’s Equity Method Investments include:

Broadway Sixty-Eight, Ltd. (the “Partnership”), an Oklahoma limited partnership, with a

33%

ownership. The Partnership owns and operates an office building in Oklahoma City, Oklahoma. Although the Company invested as a limited partner, it agreed, jointly and severally, with all other limited partners to reimburse the general partner for any losses suffered from operating the Partnership. The indemnity agreement provides

no

limitation to the maximum potential future payments. To date,

no

monies have been paid with respect to this agreement. The Company leases its corporate office from the Partnership on a month-to-month basis under the terms of the modified lease agreement. Rent expense for lease of the corporate office from the Partnership was approximately

$30,000

for

2018

and

2017.

The Company’s investment in the Partnership totaled

$172,722

and

$171,243

at

December 31, 2018

and

2017,

respectively.

Grand Woods Development, LLC (the “LLC”), an Oklahoma limited liability company, with a

47%

ownership, was acquired in

2015.

The LLC owns approximately

26.56

acres of undeveloped real estate in northeast Oklahoma City. The Company has guaranteed

$1,000,000

of a

$1,595,750

loan for which the proceeds were used to purchase a portion of the undeveloped real estate acreage. The loan matures

October 

31,

2020.

The Company’s investment in the LLC totaled

$438,303

and

$544,603

at

December 

31,

2018

and

2017,

respectively. The Company also holds a note receivable of

$43,158

from the LLC.

QSN Office Park (“QSN”), an Oklahoma limited liability company, with a

20%

ownership, was acquired in

2016.

QSN is constructing and selling office buildings in a new office park. The Company has guaranteed a

$521,602

loan for which the proceeds were used to build a speculative office building. The loan matures

November 19, 2019.

The Company’s investment in QSN totaled

$270,835

and

$275,248

at

December 

31,

2018

and

2017,

respectively.

The Company’s Other Investments include:

OKC Industrial Properties (“OKC”), with a

10%

ownership, was acquired in

1992.

OKC originally owned approximately

260

acres of undeveloped land in north Oklahoma City and over time has sold all but approximately

46

acres. The Company’s investment in OKC totaled

$56,164

at

December 

31,

2018

and

2017.

Bailey Hilltop Pipeline (“Bailey”), with a

10%

ownership, was acquired in

2008.

Bailey is a gas gathering system pipeline for the Bailey Hilltop Prospect oil and gas properties in Grady County, Oklahoma. The Company’s investment in Bailey totaled

$80,377

at

December 

31,

2018

and

2017.

Cloudburst Solutions (“Solutions”), with a

10.625%

ownership, was acquired with an initial investment of

$500,000

in

2014,

and additional investments of

$750,000

and

$44,375

in

2016

and

2018,

respectively. Solutions owns exclusive rights to a water purification process technology that is being developed and currently tested. The Company’s investment in Solutions totaled

$1,294,375

and

$1,250,000

at

December 

31,

2018

and

2017,

respectively. The Company also holds a note receivable of

$175,000

from Solutions.

Ocean’s NG (“Ocean”), with a

12.44%

ownership, was acquired in

2015.

Ocean is developing an underground Compressed Natural Gas (“CNG”) storage and delivery system for retail sales of CNG. The Company’s investment in Ocean totaled

$218,018

and

$206,444

at

December 31, 2018

and

2017,

respectively.