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INVESTMENTS | 12 Months Ended
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Dec. 31, 2018
INVESTMENTS |
INVESTMENTS | NOTE 3 INVESTMENTS The Company’s investment portfolio consists of marketable equity securities and warrants of certain publicly-traded companies. The Company adopted ASU 2016-01 as of January 1, 2018 and as a result has reclassified the Accumulated Other Comprehensive (Loss) Income (“OCI”) balance of $3.0 million related to marketable equity securities to beginning Accumulated Deficit (see Consolidated Statements of Changes in Shareholders’ Equity). As a result of adoption of this guidance, the Company now recognizes changes in fair value of these securities in the Consolidated Statements of Operations and Comprehensive (Loss) Income. As at December 31, 2017, the Company classified the marketable equity securities as available-for-sale securities, which are recorded at fair value based upon quoted market prices with changes in fair value recorded in OCI. The gains and losses for available-for-sale securities were not reported in (loss) income in the Consolidated Statements of Operations and Comprehensive (Loss) Income until the securities were sold or if there was an other-than-temporary decline in fair value below cost. During the year ended December 31, 2018, the Company sold marketable equity securities for proceeds of $2.9 million. The Company recognized a net loss on securities sold of $0.8 million, which is included in the Consolidated Statements of Operations and Comprehensive (Loss) Income. During the comparable periods ended December 31, 2017 and 2016, the Company sold $2.2 million and $0.5 million, respectively, of marketable equity securities resulting in a realized gain of $0.8 million and $0.1 million, respectively. For the year ended December 31, 2018, the Company recognized an unrealized loss on equity securities still held at the reporting date of $1.9 million. For the years ended December 31, 2017 and 2016 the unrealized gains, recorded net of tax, of $1.8 million and $1.6 million respectively, were recorded in accumulated other comprehensive income and were reported as a separate line item in the shareholders' equity section of the Consolidated Balance Sheets. The Company maintains a portfolio of warrants on equity interests in publicly-traded companies for investment purposes which are not used in any hedging activities. The Company records warrants at fair value using the Black-Scholes option pricing model. As the warrants meet the definition of derivative instruments, gains or losses arising from their revaluation are recorded in the Consolidated Statements of Operations and Comprehensive (Loss) Income. During the year ended December 31, 2018, the Company recognized an unrealized loss of $0.7 million (December 31, 2017 – $0.2 million loss and December 31, 2016 – $1.4 million gain, respectively). ASU 2016-01 specifies that an impairment assessment is only required of equity investments without readily determinable fair values. Since the Company’s investments are carried at fair value, during the year ended December 31, 2018 no impairment existed. For the comparable periods ending December 31, 2017 and 2016 the Company concluded that the fair value of certain marketable equity securities exhibited a prolonged decline in share price due to deterioration of the issuer’s results; therefore, the decline in these marketable equity securities was considered other-than-temporarily impaired (“OTTI”). In these comparable periods ending December 31, 2017 and 2016, the Company recorded an impairment loss of $0.4 million and $0.9 million, respectively. During the year ended December 31, 2018, the Company participated in a private placement financing of a TSX.V listed company, Great Bear Resources Ltd. (“Great Bear”). The Company purchased 786,186 units at C$1.45 per unit for total investment of C$1.1 million or US$0.9 million. Each unit consists of one common share and one-half of one common share purchase warrant. The investment in Great Bear was classified as an equity investment with changes in fair value measured through (loss) income within the Consolidated Statements of Operations and Comprehensive (Loss) Income. The initial cost basis allocated to common shares and warrants was allocated on a pro-rata fair value basis. The fair value of the warrants was derived using the Black-Scholes option pricing model. The following is a summary of the balances as of December 31, 2018 and 2017:
|  |  |  |  |  |  |  |  |  |  |  |  |  | Other |  |  |  |  |
|  | Opening |  | Additions |  | Net gains |  | Disposals |  | comprehensive |  | Unrealized |  | Fair value
|  | balance |  | during |  | (loss) on |  | during |  | (loss) income |  | gains (loss) on |  | end of the
As of December 31, 2018 |  | (January 1) |  | year |  | securities sold |  | year |  | (pre-tax) |  | securities held |  | year
Marketable equity securities |  | $ | 6,404 |  | $ | 1,882 |  | $ | (767) |  | $ | (2,895) |  | $ | — |  | $ | (1,906) |  | $ | 2,718
Warrants |  |  | 1,567 |  |  | 201 |  |  | — |  |  | (704) |  |  | — |  |  | (651) |  |  | 413
Investments |  | $ | 7,971 |  | $ | 2,083 |  | $ | (767) |  | $ | (3,599) |  | $ | — |  | $ | (2,557) |  | $ | 3,131
|  |  |  |  |  |  |  |  |  |  |  |  | Other |  |  |  |  |
|  | Opening |  | Additions |  | Realized |  | Disposals |  | comprehensive |  | Unrealized |  | Fair value
|  | balance |  | during |  | (loss) |  | during |  | (loss) income |  | (loss) gain |  | end of the
As of December 31, 2017 |  | (January 1) |  | year |  | gain |  | year |  | (pre-tax) |  | & OTTI |  | year
Marketable equity securities |  | $ | 6,749 |  | $ | — |  | $ | 840 |  | $ | (2,163) |  | $ | 1,334 |  | $ | (356) |  | $ | 6,404
Warrants |  |  | 1,794 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (227) |  |  | 1,567
Investments |  | $ | 8,543 |  | $ | — |  | $ | 840 |  | $ | (2,163) |  | $ | 1,334 |  | $ | (583) |  | $ | 7,971
As of December 31, 2018, the cost of the marketable equity securities and warrants was approximately $2.9 million (December 31, 2017 - $3.3 million).

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- Definition The entire disclosure for cash, cash equivalents, investments in debt and equity instruments (including cost and equity investees and related income statement amounts), equity and cost method investments, investments in joint ventures and any other investment. + References No definition available. + Details
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