XML 26 R12.htm IDEA: XBRL DOCUMENT

Note 6 - Other Assets

12 Months Ended

Dec. 31, 2021

6. OTHER ASSETS

Other assets consist of the following:

	*December 31,*		*December 31,*
	*2021*		*2020*
Deferred rent receivable	$	1,660,197	$	1,912,048
Prepaid expenses, deposits and other		473,554		215,946
Investment in marketable securities, at fair value		1,514,483		83,241
Accounts receivable, net		401,927		541,885
Right-of-use assets, net		74,643		102,144
Other intangibles, net		82,483		142,483
Notes receivable		316,374		316,374
Deferred offering costs		134,843		108,660
Total other assets	$	4,658,504	$	3,422,781

Periodically, the Company may sell an option in the marketable securities it holds to unrelated third parties for the right to purchase certain securities held within its investment portfolios (“covered call options”). These option transactions are designed primarily to increase the total return associated with holding the related securities as earning assets by using fee income generated from these options. These transactions are not designated as hedging relationships pursuant to accounting guidance ASC 815 and, accordingly, changes in fair values of these contracts, are reported in other non-interest income. There are several risks associated with transactions in options on securities. For example, there are significant differences between the securities and options markets that could result in an imperfect correlation between these markets, causing a given transaction not to achieve its objectives. A transaction in options or securities may be unsuccessful to some degree because of market behavior or unexpected events. When we write a covered call option, we forgo, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but retain the risk of loss should the price of the underlying security decline. The writer of an option has no control over the time when it may be required to fulfill its obligation before the sold option expires, and once an option writer has received an exercise notice, it must deliver the underlying security in exchange for the strike price.

As of December 31, 2021, we owned common shares of 19 different publicly traded REITs and an immaterial amount of covered call options in 10 of those same REITs. The gross fair market value on our publicly traded REIT securities was $1,522,137, with covered call options totaling $2,254. As of December 31, 2021, the net fair value of our publicly traded REIT securities was $1,514,483 based on the December 31, 2021 closing price. As of December 31, 2020, we owned common shares and options of two different publicly traded REITs and a money market account with a closing market value of approximately $83,000. These shares are presented at fair value as “marketable securities” on our consolidated balance sheets and the gains and losses resulting from the mark-to-market of these securities are recognized in current period earnings.