3. Marketable Securities - Restricted

6 Months Ended

Dec. 31, 2012

Investments, Debt and Equity Securities [Abstract]

MARKETABLE SECURITIES - RESTRICTED

Note C – Marketable Securities – Restricted

At December 31, 2012, the Company had net Marketable Securities - Restricted in the amount of $1,932,400 representing the market value ($3.92 per share) of 492,969 ORBCOMM Common Shares (NASDAQ: ORBC) received as partial consideration in the May 16, 2011 sale of StarTrak, net of an estimated 83,306 shares to be returned to ORBCOMM for settlement of obligations under the escrow agreement more fully discussed in our Form 10-K filed for the fiscal year ended June 30, 2012. The net cost basis of these shares at December 31, 2012 and June 30, 2012 is $2.91 per share.

The ORBCOMM common shares are registered under a currently effective ORBCOMM Form S-3 registration statement, however under the terms of the Agreement, the Company is limited to selling up to 279,600 shares (12 ½% of the total shares received) monthly. The Company has classified these securities as available-for-sale at December 31, 2012. The fair value measurement at December 31, 2012 is based upon quoted prices from similar assets in active markets and thus represents a Level 2 measurement. The restriction discussed above is why ORBCOMM’s Common Stock trading price is deemed a Level 2 input. However, management does not believe the restriction will interfere with any plans to market their stock holdings. As such, the trading price is used as fair value with no further adjustment.

The shares held are revalued at the end of each reporting period with per share market value fluctuations reported as Comprehensive Income (Loss) for the period. Based upon the change in market value of $3.26 per share at June 30, 2012 to $3.92 per share at December 31, 2012, the Company recorded an unrealized gain on marketable securities held at December 31, 2012 (presented in the Condensed Consolidated Statements of Comprehensive Income (Loss)), of $325,300. The actual gain or loss of securities sold is reported in the Condensed Consolidated Statements of Operations. At December 31, 2012, the Accumulated Other Comprehensive Income of $497,900 was presented in the Shareholders’ Equity section of the Condensed Consolidated Balance Sheet.

The Company reviews its marketable equity holdings in ORBCOMM on a regular basis to determine if its investment has experienced an other-than-temporary decline in fair value. The Company considers ORBCOMM’s cash position, earnings and revenue outlook, stock price performance, liquidity and management ownership, among other factors, in its review. If it is determined that an other-than- temporary decline exists, the Company writes down the investment to its market value and records the related write-down as an investment loss in its Statement of Operations. As of close of market on February 6, 2013, the per share value of the ORBCOMM Common Stock was $4.32, $1.41 per share above the cost basis of $2.91 per share and above the December 31, 2012 valuation of $3.92 per share as presented on the attached balance sheet.

The Company sold a total of 602,915 shares of ORBCOMM, Inc. Common Stock during the six months ended December 31, 2012 for total proceeds of $2,245,500, and an average selling price of approximately $3.72 per share, resulting in a net gain of $491,000. The remaining net shares at December 31, 2012 of 492,969 includes approximately 83,300 shares that are still held in escrow.

The following table summarizes the activities related to investment in Marketable Securities for the six months ended December 31, 2012.

Marketable Securities
											Accumulated
	Net		Cost Basis				Market Value				Unrealized
	Shares		Per Share		Total Cost		Per Share		Total Value		Gain		(Loss)
June 30, 2012	1,095,884	$	2.91	$	3,189,000	$	3.26	$	3,572,600	$	383,600	$	-
Shares sold	(402,888)		2.91		(1,172,400)
September 30, 2012	692,996	$	2.91	$	2,016,600	$	3.74	$	2,591,800	$	575,200	$	-
Shares sold	(200,027)		2.91		(582,100)
December 31, 2012	492,969	$	2.91	$	1,434,500	$	3.92	$	1,932,400	$	497,900	$	-