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 corporate bonds. Certificates of deposit, U.S. Treasury securities and corporate bonds held by UCS are classified as held to maturity, mature in less than

twelve

months, and are reported at amortized cost which approximates fair value. Other corporate bonds are classified as available for sale and reported at fair value. Because we have elected the fair value option for debt securities classified as available for sale, any unrealized holding gains and losses during the period are included in earnings. For the year ended

December 31, 2019,

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

$7,149.

	December 31,
	2019		2018

Certificates of deposit	$	987,599	$	1,378,666
Corporate bonds available for sale		910,000		-
U.S. Treasury notes and corporate bond held to maturity		4,649,572		4,872,398

Total	$	6,547,171	$	6,251,064

Marketable Equity Securities

During

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

December 31, 2019

and

2018

are as follows:

			Gross
			Unrealized		Fair
	Cost		Gain (Loss)		Value

Marketable equity securities, December 31, 2019	$	49,554,926	$	6,353,001	$	55,907,927

Marketable equity securities, December 31, 2018	$	-	$	-	$	-

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 consolidated balance sheets. 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 as of

December 31, 2019

and

2018

are as follows:

			Gross
			Unrealized			Fair
	Cost		Gain			Value

U.S. Treasury notes, December 31, 2019	$	75,488,863	$	(79,664	)	$	75,409,199

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

2021

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 amortized cost which approximates fair value and are held by UCS.

Long-term investments consist of the following:

	December 31,
	2019		2018

U.S. Treasury securities, held to maturity	$	1,094,983	$	2,902,004
Certificates of deposit		380,753		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	$	42,638,240	$	32,381,686

quity

Investment

May 31, 2018,

we invested

$19,058,485

in voting common stock of CB&T, the privately-held parent company of Crescent Bank & Trust, Inc. 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 DFH, the parent company of Dream Finders Homes, LLC, a national homebuilder. Excluding their non-convertible preferred equity, our 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 until

May 29, 2020

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

May 30, 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 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

December 31, 2019

and

2018

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 and

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

$752,635

December 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, together with combined summarized financial data related to the unconsolidated affiliates:

	December 31,
	2019			2018

Beginning of year	$	568,713		$	952,128
Additional investment in unconsolidated affiliates		264,834			40,399
Distributions received		(541,108	)		(816,201	)
Loss on investment in affiliate		-			(107,630	)
Equity in income of unconsolidated affiliates		479,366			500,017

End of year	$	771,805		$	568,713

Combined summarized financial data for these affiliates is as follows:

	December 31,
	2019		2018

Revenue	$	19,374,109	$	16,529,997
Gross profit		6,731,623		7,579,760
Income from continuing operations		1,806,620		3,184,701
Net income		1,859,438		3,138,320