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Note 8 - Investments, Including Investments Accounted for Using the Equity Method | 3 Months Ended
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Mar. 31, 2019
Notes to Financial Statements |
Investment [Text Block] | NOTE 8. INVESTMENTS, INCLUDING INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD Short-term Investments Short-term investments consist of certificates of deposit having maturity dates of less than twelve months and are carried at cost, U.S. Treasury securities and a corporate bond that are held to maturity and mature in less than twelve months. The certificates of deposit are held to maturity and mature in the upcoming year. The U.S. Treasury notes, the corporate bond, and the certificates of deposit are held primarily by UCS. For the three months ended March 31, 2019, losses on redemptions of U.S. Treasury notes held to maturity were $202.
|  | March 31, |  |  | December 31, |
|  | 2019 |  |  | 2018 |
Certificates of deposit |  | $ | 1,189,539 |  |  | $ | 1,378,666 |
U.S. Treasury notes and corporate bond |  |  | 7,973,102 |  |  |  | 4,872,398 |
Total |  | $ | 9,162,641 |  |  | $ | 6,251,064 |
Marketable Equity Securities During the three months ended March 31, 2019, we began investing in marketable equity securities. Our marketable equity securities are publicly traded stocks, and are measured at fair value and classified within Level 1 in the fair value hierarchy because we use quoted prices for identical assets in active markets. Our marketable equity securities are held by UCS. Marketable equity securities as of March 31, 2019 are as follows:
|  |  |  |  |  | Gross |  |  |  |  |
|  |  |  |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Loss |  |  | Value |
Marketable equity securities, March 31, 2019 |  | $ | 5,521,241 |  |  | $ | (44,018 | ) |  | $ | 5,477,223 |
U.S. Treasury Securities Available for Sale We classify our investments in debt securities that we intend to hold for indefinite periods of time as “available for sale.” Our securities available for sale are carried at fair value in the balance sheet. Because we have elected the fair value option for these securities, unrealized holding gains and losses during the period are included in earnings. Interest income is recognized at the coupon rate. Securities available for sale are as follows:
|  |  |  |  |  | Gross |  |  |  |  |
|  |  |  |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gain |  |  | Value |
U.S. Treasury notes, March 31, 2019 |  | $ | 87,428,644 |  |  | $ | 84,709 |  |  | $ | 87,513,353 |
U.S. Treasury notes, December 31, 2018 |  | $ | 86,728,590 |  |  | $ | 116,796 |  |  | $ | 86,845,386 |
Long-term Investments Long-term investments consist of certificates of deposit having maturity dates in excess of twelve months and U.S. Treasury securities. The certificates of deposit and U.S. Treasury securities have maturity dates ranging from 2020 through 2023. We have the intent and the ability to hold the certificates of deposit and U.S. Treasury securities to maturity. Certificates of deposit and U.S. Treasury securities are stated at carrying value which approximates fair value and are held by UCS. Long-term investments consist of the following:
|  | March 31, |  |  | December 31, |
|  | 2019 |  |  | 2018 |
U.S. Treasury securities, held to maturity |  | $ | 3,530,646 |  |  | $ | 2,902,004 |
Certificates of deposit |  |  | - |  |  |  | 317,178 |
Preferred stock |  |  | 104,019 |  |  |  | 104,019 |
Non-voting common units of Dream Finders Holdings, LLC |  |  | 9,998,856 |  |  |  | 10,000,000 |
Voting common stock of CB&T Holding Corporation |  |  | 19,058,485 |  |  |  | 19,058,485 |
Total |  | $ | 32,692,006 |  |  | $ | 32,381,686 |
Equity Investments On May 31, 2018, we invested $19,058,485 in voting common stock of CB&T Holding Corporation, which we refer to as “CB&T,” the privately held parent company of Crescent Bank & Trust. Our investment represents 14.99% of CB&T’s outstanding common stock. CB&T is a closely held corporation, whose majority ownership rests with one family. During late December 2017, we invested $10,000,000 in non-voting common units of Dream Finders Holdings, LLC, a national homebuilder. Excluding their non-convertible preferred equity, our investment represents an approximately 5% ownership stake in the company. During January 2018, we exchanged our convertible note receivable from Breezeway Homes, Inc., which we refer to as “Breezeway,” for 31,227 shares of preferred stock. The preferred stock is noncumulative and has a dividend rate of $.2665 per share, should dividends be declared. The preferred stock has one vote per share and is convertible into whole shares of common stock, determined according to the conversion formula contained in Breezeway’s amended and restated articles of incorporation. We reviewed our investments as of March 31, 2019 and concluded that no impairment to the carrying value was required. Investment in Unconsolidated Affiliates We have various investments in equity method affiliates, whose businesses are in real estate and real estate services. Our interest in these affiliates ranges from 7.15% to 30%. Two of the investments in affiliates, Logic Real Estate Companies, LLC and 24 th Street Holding Company, LLC, having a combined carrying amount of $350,133 on March 31, 2019, are managed by a member of our board of directors. The following table is a reconciliation of our investments in equity affiliates as presented in investments in unconsolidated affiliates on our consolidated balance sheets:
|  | March 31, |  |  | December 31, |
|  | 2019 |  |  | 2018 |
Beginning of period |  | $ | 568,713 |  |  | $ | 952,128 |
Additional investment in unconsolidated affiliate |  |  | - |  |  |  | 40,399 |
Distributions received |  |  | (85,030 | ) |  |  | (816,201 | )
Loss on investment in affiliate |  |  | - |  |  |  | (107,630 | )
Equity in income of unconsolidated affiliates |  |  | 94,753 |  |  |  | 500,017 |
End of period |  | $ | 578,436 |  |  | $ | 568,713 |
The loss on investment in affiliate is related to the wind-down of TAG SW 1, LLC, which occurred during 2018.

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