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Investments
 6 Months Ended
Jun. 30, 2011
Investments  
Investments

Note 4.   Investments

 

The cost and estimated fair value of the Company's investments (other than an investment accounted for under the equity method of accounting) are as follows:

 

 

Cost

 

Gross
unrealized
gain

 

Gross
unrealized
loss

 

Fair
value

 

June 30, 2011

 

 

 

 

 

 

 

 

 

Treasury Bills        

 

$

5,200,000

 

$

0

 

$

0

 

$

5,200,000

 

Money Market Funds

 

171,000

 

0

 

0

 

171,000

 

Equity Securities

 

101,000

 

3,688,000

 

(54,000)

 

3,735,000

 

 

 

5,472,000

 

3,688,000

 

(54,000)

 

9,106,000

 

Less Cash and Cash Equivalents

 

171,000

 

0

 

0

 

171,000

 

Total Investments, June 30, 2011

 

$

5,301,000

 

$

3,688,000

 

$

(54,000)

 

$

8,935,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2010

 

 

 

 

 

 

 

 

 

Treasury Bills

 

$

5,197,000

 

$

0

 

$

0

 

$

5,197,000

 

Money Market Funds

 

170,000

 

0

 

0

 

170,000

 

Equity Securities

 

101,000

 

2,783,000

 

(54,000)

 

2,830,000

 

 

 

5,468,000

 

2,783,000

 

(54,000)

 

8,197,000

 

Less Cash and Cash Equivalents

 

170,000

 

0

 

0

 

170,000

 

Total Investments, December 31, 2010

 

$

5,298,000

 

$

2,783,000

 

$

(54,000)

 

$

8,027,000

 

 

 

 

 

 

 

 

 

 

 

 

At June 30, 2011, the Company's significant investments in equity securities were 343,267 shares of Rudolph Technologies, Inc. ("Rudolph") and 551,759 shares of PPT Vision, Inc. ("PPT"), both of which are accounted for under the available-for-sale method.  At December 31, 2010, the Company's significant investment in equity securities was 343,267 shares of Rudolph Technologies, Inc. ("Rudolph"), accounted for under the available-for-sale method.  As of June 30, 2011 and December 31, 2010, the aggregate value of the Company's Rudolph shares as reported on the Nasdaq Stock Exchange was approximately $3,676,000 and $2,825,000, respectively, with an approximate cost of $45,000. As of June 30, 2011, the aggregate value of the Company's PPT shares as reported on the Pink Sheets was approximately $55,000, with an adjusted basis of $0.

 

In addition, the Company owns two Treasury Bills with a total fair market value of $5,200,000.  The first Treasury Bill was purchased on August 11, 2010 at a purchase price of $899,000 and that matured on July 28, 2011.  The Company is in the process of considering options for investing the funds in the future.  The second Treasury Bill was purchased on May 20, 2011 at a purchase price of $4,300,000 and has a maturity date of September 22, 2011.  It is the intention of management to hold the Treasury Bills until maturity. 

 

Investment Reported on Equity Method

 

At December 31, 2010, the Company owned 551,759 shares of PPT Vision, Inc. ("PPT"), which is 1.4% of PPT's outstanding common stock.  The fair value of its holdings based on the quoted market price at December 31, 2010 was approximately $99,000  with an approximate cost of $2,434,000.

 

Because the Company owned approximately 1.4% of PPT's outstanding stock and the Company's Secretary owned a controlling interest in PPT, it had been determined that the Company had "significant influence" over the operations of PPT, and as a result its ownership interest should be reported using the equity method of accounting for investments.  In the first quarter of 2011, it was determined that the Company no longer has "significant influence" over the operations of PPT and accordingly, the Company is accounting for its investment in PPT as an available-for-sale security.  Upon conversion to available-for-sale classification, the Company recorded the stock at its adjusted basis of $0 which reflected its carrying amount at that date.