NOTE 4 - INVESTMENT IN AVAILABLE FOR SALE MARKETABLE SECURITIES

On December 31, 2025, the Company finalized the spin-off of CognoGroup, Inc., after which 19.99% ownership was retained through 84,164,000 shares of CognoGroup common stock. CognoGroup is listed on the OTC market. Based on the closing share price, the fair value noted as of June 30, 2026 is $1.4 million.

The Company’s investments in marketable equity securities, primarily shares of Futuris (FTRS) and CognoGroup (CGNO), are held for an indefinite period. Under US GAAP, these equity securities are measured at fair value, with changes in fair value recognized in net income. Although they are publicly traded securities, there can be no guarantee of liquidity or the ability to sell these shares at quoted market prices when desired.

The cost basis of securities held as of June 30, 2026, and December 31, 2025, were $890 thousand and $890 thousand, while accumulated unrealized gains (losses) were $548 thousand and $(546) thousand, respectively. The fair market value of available for sale marketable securities were $1.4 million and $343 thousand as of June 30, 2026, and December 31, 2025, respectively.

The reconciliation of the investment in equity securities for the six months ended June 30, 2026, and 2025, is as follows:

Net cumulative realized and unrealized gains or losses on these equity securities are recognized in net income. Realized losses on investments sold or assigned were $0 for both periods. Unrealized gains (losses) on investments still held were $1.1 million and $(44) thousand for the six months ended June 30, 2026, and 2025, respectively. These gains and losses are presented in the statements of operations.