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Note D - Marketable Equity Securities
 3 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE D: MARKETABLE EQUITY SECURITIES

The Company’s investments in marketable securities consist of equity securities with readily determinable fair values. The cost of securities sold is based on the specific identification method, and interest and dividends on securities are included in non-operating income (expense).

 

Marketable equity securities are carried at fair value, with gains and losses in fair market value included in the determination of net income. The fair value of marketable equity securities is determined based on quoted market prices in active markets, as described in Note J.

 

The following table sets forth market value, cost, and unrealized gains on equity securities as of March 31, 2024 and December 31, 2023.

 

  

March 31, 2024

  

December 31, 2023

 
  

(in thousands)

 

Fair market value

 $45,789  $43,203 

Cost

  30,294   30,294 

Unrealized gain

 $15,495  $12,909 

 

The following table sets forth the gross unrealized gains and losses on the Company’s marketable securities as of March 31, 2024 and December 31, 2023.

 

  

March 31, 2024

  

December 31, 2023

 
  

(in thousands)

 

Gross unrealized gains

 $18,098  $15,539 

Gross unrealized losses

  2,603   2,630 

Net unrealized gain

 $15,495  $12,909 

 

The Company did not sell any marketable equity securities and had no realized gains or losses during the quarter ending on March 31, 2024 or 2023, respectively.

 

For the quarter ended March 31, 2024, the Company recognized dividends received of approximately $349,000 in non-operating income in its condensed consolidated statements of operations. For the quarter ended March 31, 2023, the Company recognized dividends received of approximately $377,000 in non-operating income in its condensed consolidated statements of operations.

 

The Company’s equity securities are periodically used as collateral against any outstanding margin account borrowings. As of March 31, 2024, the Company had no outstanding borrowings under its margin account, which is no change from December 31, 2023, when the Company had no outstanding borrowings under the same account. Margin account borrowings, when utilized, are used for the purchase of marketable equity securities and as a source of short-term liquidity and are included in accrued expenses and other liabilities on our condensed consolidated balance sheets.

 

Our marketable equity securities portfolio had a net unrealized pre-tax gain in market value of approximately $2,586,000 during the first quarter of 2024, and a net unrealized pre-tax loss in market value of approximately $288,000 during the first quarter of 2023, which were reported as non-operating income in its condensed consolidated statements of operations for the respective periods.