NOTE

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

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

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

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

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%

30%.

Two of the investments in affiliates, Logic Real Estate Companies, LLC and

Street Holding Company, LLC, having a combined carrying amount of

$350,133

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

LLC, which occurred during

2018.