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

three

months ended

March 31, 2020

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

$2,284.

For the

three

months ended

March 31, 2020,

unrealized losses on corporate bonds were

$310,000.

	March 31,		December 31,
	2020		2019

Certificates of deposit	$	1,263,273	$	987,599
Corporate bonds available for sale		600,000		910,000
U.S. Treasury notes and corporate bond		4,834,947		4,649,572

Total	$	6,698,220	$	6,547,171

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

March 31, 2020

and

December 31, 2019

are as follows:

			Gross
			Unrealized			Fair
	Cost		Gain (Loss)			Value

Marketable equity securities, March 31, 2020	$	77,700,618	$	(18,064,904	)	$	59,635,714

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

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

March 31, 2020

and

December 31, 2019

are as follows:

			Gross
			Unrealized			Fair
	Cost		Gain (Loss)			Value

U.S. Treasury securities, March 31, 2020	$	-	$	-		$	-

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

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 carrying value which approximates fair value and are held by UCS.

Long-term investments consist of the following:

	March 31,		December 31,
	2020		2019

U.S. Treasury securities, held to maturity	$	538,305	$	1,094,983
Certificates of deposit		106,216		380,753
Preferred stock		104,019		104,019
Non-voting preferred units of Dream Finders Holdings, LLC		6,000,000		12,000,000
Non-voting common units of Dream Finders Holdings, LLC		-		10,000,000
Voting common stock of CBT Holding Corporation		19,058,485		19,058,485

Total	$	25,807,025	$	42,638,240

Equity

Investments

May 31, 2018,

we invested

$19,058,485

in voting common stock of CB&T Holding Corporation, which we refer to as “CBT,” the privately held parent company of Crescent Bank & Trust. Our investment represents

14.99%

of CBT’s outstanding common stock. CBT 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. During the

first

quarter of

2020,

we obtained additional non-voting shares of DFH which increased our ownership in the company to approximately

5.6%.

As a result, we began applying the equity method of accounting for our investment in DFH prospectively from

January 1, 2020,

the date we obtained the additional shares.

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.

January 13, 2020,

DFH redeemed

$6,000,000

of the preferred units purchased in

May 2019.

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

March 31, 2020

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 home building, real estate, real estate services, and asset management. Our interest in these affiliates ranges from

5.6%

30%.

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

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

$789,149

March 31, 2020

, are managed by an entity controlled by a member of our board of directors.

March 2020,

we invested

$1,500,000

Street Fund I, LLC. The fund is managed by

Street Asset Management LLC and will focus on opportunities within secured lending and direct investments in commercial real estate.

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:

	March 31,			December 31,
	2020			2019

Beginning of period	$	771,805		$	568,713
Additional investment in unconsolidated affiliates		11,500,000			264,834
Distributions received		(98,100	)		(541,108	)
Equity in income of unconsolidated affiliates		465,665			479,366

End of period	$	12,639,370		$	771,805

Combined summarized financial data for these affiliates is as follows:

	March 31,
	2020		2019

Revenue	$	191,751,459	$	119,274,082
Gross profit		25,787,988		21,798,609
Income from continuing operations		7,382,036		3,537,480
Net income		6,517,748		3,348,507