XML 24 R10.htm IDEA: XBRL DOCUMENT

Marketable Equity Securities

12 Months Ended

Dec. 31, 2016

3. Marketable Equity Securities

On May 2, 2016 Solitario purchased 7,240,000 units of Vendetta for aggregate consideration of $289,000. Each unit included one common share of Vendetta and one purchase warrant which allows the holder to purchase one share of Vendetta common stock at a price of Cdn$0.10 per share for a period of two years (the “Vendetta Warrants”). The purchase price of the units of $289,000 was allocated between the Vendetta common shares and the Vendetta Warrants based upon total fair values on the date of purchase. The Vendetta common stock was allocated a purchase cost of $186,000 and the Vendetta Warrants were allocated a purchase cost of $103,000. As of December 31, 2016, the common shares of Vendetta are carried at their fair value based upon the quoted market price of Vendetta, a publicly traded company on the TSX venture exchange, and included in marketable equity securities. The Vendetta Warrants are carried at their fair value, based upon a Black-Scholes valuation model. During the year ended December 31, 2016, Solitario recorded a gain on derivative instruments of $629,000, related to the Vendetta Warrants; see Note 6, “Derivative Instruments,” below.

The following tables summarize Solitario’s marketable equity securities and accumulated other comprehensive income related to its marketable equity securities:

(in thousands)	December 31,
	2016	2015
Marketable equity securities at fair value	$1,339	$202
Cost	274	91
Accumulated other comprehensive income for unrealized holding gains	1,065	111
Deferred taxes on accumulated other comprehensive income for unrealized holding gains	353	-
Accumulated other comprehensive income	$ 712	$ 111

The following table represents changes in marketable equity securities:

(in thousands)	Year ended December 31,
	2016	2015
Gross cash proceeds from sales	$ 56	$ 809
Cost	16	1,778
Gross gain (loss) on sale included in earnings during the period	40	(969)
Deferred taxes on gross gain on sale included in earnings	(15)	-
Reclassification adjustment to unrealized gain in other comprehensive income for net (gain) loss included in earnings	(25)	969
Gross unrealized holding gain (loss) arising during the period included in other comprehensive income (loss)	994	(1,296)
Deferred taxes on unrealized holding losses included in other comprehensive (income) loss	(368)	1,558
Net unrealized holding gain	626	262
Other comprehensive income from marketable equity securities	$601	$1,231