NOTE

NVESTMENTS

, INCLUDING INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Short-term Investments

Short-term investments consist of certificates of deposit, U.S. Treasury securities, and a corporate bond and are primarily held by UCS . All short-term investments are classified as held to maturity and mature in less than

twelve

months. The certificates of deposit are carried at cost. For the

nine

months ended

September 30, 2019

, gains on redemptions of U.S. Treasury notes held to maturity were

$1,935.

	September 30,		December 31,
	2019		2018

Certificates of deposit	$	1,158,928	$	1,378,666
U.S. Treasury notes and corporate bond		5,212,991		4,872,398

Total	$	6,371,919	$	6,251,064

Marketable Equity Securities

During the

nine

months ended

September 30, 2019

, we began investing in marketable equity securities. Our marketable equity securities are publicly traded stocks measured at fair value using quoted prices for identical assets in active markets and classified as Level

within the fair value hierarchy. Our marketable equity securities are held by UCS and Boston Omaha.

Marketable equity securities as of

September 30, 2019

are as follows:

			Gross
			Unrealized		Fair
	Cost		Gain (Loss)		Value

Marketable equity securities, September 30, 2019	$	49,941,567	$	2,925,116	$	52,866,683

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 (Loss)			Value

U.S. Treasury notes, September 30, 2019	$	75,156,283	$	(61,056	)	$	75,095,227

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, U.S. Treasury securities, and certain equity investments. 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:

	September 30,		December 31,
	2019		2018

U.S. Treasury securities, held to maturity	$	1,474,937	$	2,902,004
Certificates of deposit		687,779		317,178
Preferred stock		104,019		104,019
Non-voting preferred units of Dream Finders Holdings, LLC		12,000,000		-
Non-voting common units of Dream Finders Holdings, LLC		10,000,000		10,000,000
Voting common stock of CB&T Holding Corporation		19,058,485		19,058,485

Total	$	43,325,220	$	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.

In late

December 2017,

we invested

$10

million in non-voting common units of Dream Finders Holdings LLC, which we refer to as “DFH”, the parent company of Dream Finders Homes, LLC, a national home builder with operations in Florida, Texas, Georgia, Colorado and the greater northern Virginia and Maryland areas. Our non-voting common units investment represents an approximately

ownership stake in the company. In

May 2019,

our subsidiary BOC DFH, LLC invested an additional

$12

million in DFH through the purchase of preferred units. DFH is required to pay to us a mandatory preferred return of at least

14%

per annum on such preferred units and

25%

of our preferred units are convertible, at our option, into non-voting common units after

May 29, 2020

and the remaining preferred units are convertible, at our option, into non-voting common units after

May 29, 2021.

The mandatory

14%

preferred return increases if the preferred units purchased are

not

redeemed or converted within

one

year of purchase. Also, we obtain additional beneficial conversion terms if the preferred units are

not

redeemed by

May 29, 2021.

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. In addition, our investment provides us with a multi-year right to sell insurance and/or warranty products through Breezeway's software platform to its customers.

We reviewed our investments as of

September 30, 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, real estate services, and asset management. 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

$614,593

September 30, 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:

	September 30,			December 31,
	2019			2018

Beginning of period	$	568,713		$	952,128
Additional investment in unconsolidated affiliate		225,978			40,399
Distributions received		(503,431	)		(816,201	)
Loss on investment in affiliate		-			(107,630	)
Equity in income of unconsolidated affiliates		323,333			500,017

End of period	$	614,593		$	568,713

The loss on investment in affiliate is related to the wind-down of TAG SW

LLC, which occurred during

2018