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Note 6 - Other Assets

12 Months Ended

Dec. 31, 2023

6. OTHER ASSETS

Other assets consist of the following:

	*December 31,*		*December 31,*
	*2023*		*2022*
Deferred rent receivable	$	1,973,887	$	1,641,831
Accounts receivable, net		694,869		67,780
Prepaid expenses, deposits and other		349,160		619,621
Notes receivable		316,374		316,374
Investment in marketable securities (not including Conduit)		45,149		797,749
Right-of-use assets, net		15,649		45,843
Deferred offering costs		5,000		—
Other intangibles, net		—		22,483
Total other assets	$	3,400,088	$	3,511,681

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 income (expense). 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, 2023, we owned common shares of 3 different publicly traded REITs and no written covered call options in any of those same REITs. The fair market value on our publicly traded REIT securities was $45,149, based on the December 31, 2023 closing prices. As of December 31, 2022, we owned common shares and options of 18 different publicly traded REITs and an immaterial amount of covered call options in three of those same REITs. The gross fair market value on our publicly traded REIT securities was $798,206, with covered call options totaling $457. As of December 31, 2022, the net fair value of our publicly traded REIT securities was $797,749 based on the December 31, 2022 closing prices.