SUNation Energy, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Cash Equivalents and Investments

Cash Equivalents and Investments

9 Months Ended

Sep. 30, 2020

Cash Equivalents and Investments [Abstract]

NOTE 4 – CASH EQUIVALENTS AND INVESTMENTS

The following tables show the Company’s cash equivalents and available –for-sale securities’ amortized cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or short- and long-term investments as of September 30, 2020 and December 31, 2019:



September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash Equivalents		Short-Term Investments		Long-Term Investments

Cash equivalents:
Money Market funds	$	7,189,000	$	-	$	-	$	7,189,000	$	7,189,000	$	-	$	-
Subtotal		7,189,000		-		-		7,189,000		7,189,000		-		-

Investments:
Commercial Paper		3,898,000		2,000		-		3,900,000		-		3,900,000		-
Corporate Notes/Bonds		7,687,000		-		(9,000)		7,678,000		-		1,365,000		6,313,000
Convertible Debt		355,000		-		-		355,000		-		-		355,000
Subtotal		11,940,000		2,000		(9,000)		11,933,000		-		5,265,000		6,668,000


Total	$	19,129,000	$	2,000	$	(9,000)	$	19,122,000	$	7,189,000	$	5,265,000	$	6,668,000



December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash Equivalents		Short-Term Investments		Long-Term Investments

Cash equivalents:
Money Market funds	$	8,761,000	$	-	$	-	$	8,761,000	$	8,761,000	$	-	$	-
Subtotal		8,761,000		-		-		8,761,000		8,761,000		-		-

Investments:
Commercial Paper		8,695,000		-		(1,000)		8,694,000		-		8,694,000		-
Corporate Notes/Bonds		756,000		-		-		756,000		-		756,000		-
Convertible Debt		250,000		-		-		250,000		-		-		250,000
Subtotal		9,701,000		-		(1,000)		9,700,000		-		9,450,000		250,000


Total	$	18,462,000	$	-	$	(1,000)	$	18,461,000	$	8,761,000	$	9,450,000	$	250,000

The following table summarizes the estimated fair value of our investments, designated as available-for-sale and classified by the contractual maturity date of the securities as of September 30, 2020:



	Amortized Cost		Estimated Market Value

Due within one year	$	5,264,000	$	5,265,000
Due after one year through five years		6,676,000		6,668,000
	$	11,940,000	$	11,933,000

The Company did not recognize any gross realized gains or losses during either of the three or nine month periods ending September 30, 2020 and 2019, respectively. If the Company had realized gains or losses, they would be included within investment and other income in the accompanying condensed consolidated statement of income (loss) and comprehensive income (loss).

In April 2020, the Company made an $899,000 investment in the common stock of Quortus Ltd., a UK-based company that provides virtual core network software for Private LTE solutions for critical and secure communications. This investment is important for the Company’s Electronics & Software segment because this segment has been partnering with Quortus to integrate the Quortus Private LTE core in existing and new products for that segment’s federal business, network extensions, and private networks for enterprises. The Company’s investment represents less than 10% of the outstanding equity of Quortus Ltd. The Company uses the cost method to account for investments in common stock of entities such as Quortus if the Company does not have the ability to exercise significant influence over the operating and financial matters of the entity. The Company also uses the cost method to account for its investments that are not in the form of common stock or in-substance common stock in entities if the Company does not have the ability to exercise significant influence over the entity’s operating and financial matters.