XML 26 R10.htm IDEA: XBRL DOCUMENT

Marketable Equity Securities

12 Months Ended

Dec. 31, 2018

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 warrant which allow 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 discussed below, during 2017 Solitario exercised all of its Vendetta Warrants, and sold 3,480,000 shares of Vendetta common stock. As of December 31, 2018, Solitario owns 11,000,000 shares of Vendetta common stock which 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 following tables summarize Solitario’s marketable equity securities and adjustments to fair value:

(in thousands)	Year ended December 31,
	2018	2017
Marketable equity securities at cost	$1,714	$1,714
Cumulative unrealized (loss) gain on marketable equity securities	(129)	929
Marketable equity securities at fair value	$1,585	$2,643

The following table represents changes in marketable equity securities:

(in thousands)	Year ended December 31,
	2018	2017
Cost of marketable equity securities sold	$ -	$ 88
Realized gain on marketable equity securities sold	-	578
Proceeds from the sale of marketable equity securities sold	-	(666)
Purchase of marketable equity securities	-	1,528
Gross (loss) gain on marketable equity securities	(1,058)	442
Change in marketable equity securities at fair value	$(1,058)	$ 1,304

The following table represents the realized and unrealized gain (loss) on marketable equity securities:

(in thousands)	Year ended December 31,
	2018	2017
Gross (loss) gain on marketable securities	$(1,058)	$442
Realized gain on marketable equity securities sold	-	(578)
Unrealized (loss) on marketable equity securities	$(1,058)	$(136)

During 2017, Solitario sold 3,480,000 Vendetta common shares, for cash proceeds of $666,000. In addition, during 2017, Solitario exercised its Vendetta Warrants, also discussed below in Note 4, “Other Assets” and received 7,240,000 common shares of Vendetta. Solitario transferred the fair value of the Vendetta Warrants on the date of exercise of $950,000, along with the cash paid to exercise the Vendetta Warrants of $578,000 to marketable equity securities as the cost of the 7,240,000 common shares of Vendetta acquired.