Note 3 - Equity Method and Other Investments and Related Commitments and Contingent Liabilities, Including Guarantees

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

Note 3 – EQUITY METHOD AND OTHER INVESTMENTS AND RELATED COMMITMENTS AND CONTINGENT LIABILITIES, INCLUDING GUARANTEES

The Company’s Equity Method Investments include:

Broadway Sixty-Eight, LLC (“Broadway”), an Oklahoma limited liability company, with a

33%

ownership. Broadway owns and operates an office building in Oklahoma City, Oklahoma. The Company leases its corporate office from Broadway on a month-to-month basis under the terms of the modified lease agreement. Rent expense for lease of the corporate office from Broadway was approximately

$7,800

and

$7,500

during the

three

months ended

March 

31,

2019

and

2018,

respectively. The Company’s investment in Broadway totaled

$182,687

and

$172,722

at

March 

31,

2019

and

December 

31,

2018,

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

$360,408

and

$438,303

at

March 

31,

2019

and

December 

31,

2018,

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

$1,300,000

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

March 

26,

2021.

The Company’s investment in QSN totaled

$268,289

and

$270,835

at

March 

31,

2019

and

December 

31,

2018,

respectively.

The Company’s Other Investments primarily 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

March 

31,

2019

and

December 

31,

2018.

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

March 

31,

2019

and

December 

31,

2018.

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

at

March 

31,

2019

and

December 

31,

2018.

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

$219,885

and

$218,018

at

March 

31,

2019

and

December 

31,

2018,

respectively.