XML 33 R15.htm IDEA: XBRL DOCUMENT
v3.21.1

Note 9 - Investments, Including Investments Accounted for Using the Equity Method (As Restated) | 12 Months Ended
--- | ---
Dec. 31, 2020
Notes to Financial Statements |
Investment [Text Block] |
NOTE 9. | I NVESTMENTS, INCLUDING INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (As Restated)
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 trading and reported at fair value, with any unrealized holding gains and losses during the period included in earnings. For the year ended December 31, 2020, gains on redemptions of U.S. Treasury securities held to maturity were $13,159.
|  | December 31, |
|  | 2020 |  |  | 2019 |
Certificates of deposit |  | $ | 1,035,827 |  |  | $ | 987,599 |
Corporate bonds classified as trading |  |  | 1,020,000 |  |  |  | 910,000 |
U.S. Treasury notes and corporate bond held to maturity |  |  | 4,994,848 |  |  |  | 4,649,572 |
Total |  | $ | 7,050,675 |  |  | $ | 6,547,171 |
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 1 within the fair value hierarchy. Our marketable equity securities are held by UCS and Boston Omaha. Marketable equity securities as of December 31, 2020 and 2019 are as follows:
|  |  |  |  |  | Gross |  |  |  |  |
|  |  |  |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gain (Loss) |  |  | Value |
Marketable equity securities, December 31, 2020 |  | $ | 68,205,548 |  |  | $ | (4,169,066 | ) |  | $ | 64,036,482 |
Marketable equity securities, December 31, 2019 |  | $ | 49,554,926 |  |  | $ | 6,353,001 |  |  | $ | 55,907,927 |
U.S. Treasury Securities We classify our investments in debt securities that are bought and held principally for the purpose of selling them in the near term as trading securities. Our debt securities classified as trading are carried at fair value in the consolidated balance sheets, with the change in fair value during the period included in earnings. Interest income is recognized at the coupon rate. Debt securities classified as trading and available for sale as of December 31, 2020 and 2019 are as follows:
|  |  |  |  |  | Gross |  |  |  |  |
|  |  |  |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gain |  |  | Value |
U.S. Treasury trading securities, December 31, 2020 |  | $ | 37,766,133 |  |  | $ | 1,812 |  |  | $ | 37,767,945 |
U.S. Treasury securities available for sale, 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 amortized cost which approximates fair value and are held by UCS. Long-term investments consist of the following:
|  | December 31, |
|  | (As Restated) |  |  |  |  |
|  | 2020 |  |  | 2019 |
U.S. Treasury securities, held to maturity |  | $ | 286,015 |  |  | $ | 1,094,983 |
Certificates of deposit |  |  | - |  |  |  | 380,753 |
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 |
Voting common stock of CB&T Holding Corporation |  |  | 19,058,485 |  |  |  | 19,058,485 |
Total |  | $ | 19,448,519 |  |  | $ | 42,638,240 |
E quity Investment s During May 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 Colorado, Florida, Georgia, Maryland, North Carolina, South Carolina, Texas and northern Virginia. 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. In May 2019, our subsidiary BOC DFH, LLC invested an additional $12 million in DFH through the purchase of preferred units. DFH was 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 were convertible, at our option, into non-voting common units after May 29, 2020 and the remaining preferred units were convertible, at our option, into non-voting common units after May 29, 2021. The mandatory 14% preferred return increased if the preferred units purchased were not redeemed or converted within one year of purchase. Also, we obtained additional beneficial conversion terms if the preferred units were not redeemed by May 29, 2021. During the twelve months ended December 31, 2020, DFH redeemed all $12 million 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 December 31, 2020 and 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 home building, real estate, real estate services, and asset management. Our interest in these affiliates ranges from 5.6% to 30%. Two of the investments in affiliates, Logic Real Estate Companies, LLC and 24th Street Holding Company, LLC, having a combined carrying amount of $687,707 as of December 31, 2020, are managed by an entity controlled by a member of our board of directors. 24th Street Fund I & 24th Street Fund II During 2020, we invested a total of $6,000,000 in two funds, 24th Street Fund I, LLC, and 24th Street Fund II, LLC, that are managed by 24th Street Asset Management LLC, a subsidiary of 24th Street Holding Company, LLC. The funds 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:
|  | December 31, |
|  | (As Restated) |  |  |  |  |
|  | 2020 |  |  | 2019 |
Beginning of year |  | $ | 771,805 |  |  | $ | 568,713 |
Additional investments in unconsolidated affiliates |  |  | 16,000,000 |  |  |  | 264,834 |
Distributions received |  |  | (1,433,480 | ) |  |  | (541,108 | )
Equity in income of unconsolidated affiliates |  |  | 5,575,571 |  |  |  | 479,366 |
End of year |  | $ | 20,913,896 |  |  | $ | 771,805 |
Combined summarized financial data for these affiliates is as follows:
|  | December 31, |
|  | (As Restated) |  |  |  |  |
|  | 2020 |  |  | 2019 |
Revenue |  | $ | 1,147,735,494 |  |  | $ | 19,374,109 |
Gross profit |  |  | 176,953,564 |  |  |  | 6,731,623 |
Income from continuing operations |  |  | 82,992,830 |  |  |  | 1,806,620 |
Net income |  |  | 86,847,498 |  |  |  | 1,859,438 |
Note Receivable from Affiliate On October 2, 2020, we provided an unsecured term loan of $20,000,000 to Dream Finders Holdings, LLC to be used in expanding DFH's footprint in the Southeast United States. The effective interest rate on the term loan is approximately 14% and the loan matures on May 1, 2021. Interest on unpaid principal accrues each calendar month and is due and payable monthly in arrears, on the first day of the next calendar month. Monthly interest payments began on November 1, 2020 and will continue on the first day of each month until May 1, 2021, when the note matures. Beginning February 1, 2021, and on the first day of each month thereafter, payments of $5,000,000 are due such that all outstanding principal and interest is paid by the maturity date. Other than during the existence of an event of default, all monthly payments are applied first to the payment of unpaid and accrued interest, and finally to the payment of outstanding principal due. Dream Finders Holdings, LLC has the right to prepay all or any portion of the note, but would be required to pay an amount equal to the excess of the interest which would have been due and payable if the note had not been prepaid prior to the maturity date. Any prepayments require no less than ten days notice and must identify the aggregate principal amount of the note to be prepaid on such date as well as the related interest to be paid on the prepayment date.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investment. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 321 -URI http://asc.fasb.org/topic&trid=75115024 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 325 -URI http://asc.fasb.org/topic&trid=2197064 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_InvestmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration