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

12 Months Ended

Dec. 31, 2019

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, 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

$35,000

and

$32,000

for

2019

and

2018,

respectively. The Company’s investment in Broadway totaled

$157,911

and

$172,722

at

December 

31,

2019

and

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

$1,200,000

of a

$1,755,000

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

$316,384

and

$438,303

at

December 

31,

2019

and

2018,

respectively.

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

$270,503

and

$270,835

at

December 

31,

2019

and

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

December 

31,

2019

and

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

December 

31,

2019

and

2018.

Cloudburst Solutions (“Solutions”), with an

11.9375%

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. The Company held a Convertible Promissory Note in the amount of

$175,000

from Solutions until

October 

4,

2019,

at which time all principal and accrued interest unpaid of

$26,632

were converted into

1.3125%

of additional equity in Solutions. Effective

November 

5,

2019,

the Company’s interest in Cloudburst Solutions was converted to a new entity, Cloudburst International, Inc. (“Cloudburst”). The Company was issued

95,500

shares equaling

11.9375%

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

$1,496,007

and

$1,294,375

at

December 

31,

2019

and

December 

31,

2018,

respectively.

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

$225,485

and

$218,018

at

December 

31,

2019

and

2018,

respectively.