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TGSV ENTERPRISES, INC. <br /> <br />NOTES TO FINANCIAL STATEMENTS <br /> <br />DECEMBER 31, 2017 <br /> <br /> <br />3 SHORT-TERM INVESTMENTS <br /> <br />Short-term investments consist of certificates of deposit totaling $855,000. The certificates <br />earn interest at rates ranging from 1.25% to 1.75% and have maturity dates through <br />December 27, 2018, with penalties for early withdrawal. Any penalties for early withdrawal <br />would not have material effects on the financial statements. As of December 31, 2017, funds <br />in the interest-bearing accounts were insured in full. <br /> <br />4 MARKETABLE EQUITY SECURITIES <br /> <br />Investments in marketable equity securities are classified as trading securities and are <br />included in the accompanying balance sheet as follows: <br /> <br /> <br /> Cost <br /> Basis <br /> Gross <br /> Unrealized <br /> Gains <br /> Gross <br /> Unrealized <br /> Losses <br /> <br /> Fair <br /> Value <br /> <br />Closed end funds $ 375,681 $ 48,690 $ (95,003) $ 329,368 <br />Mutual funds 621,349 72,723 (51,722) 642,350 <br /> <br /> $ 997,030 $ 121,413 $ (146,725) $ 971,718 <br /> <br />Net unrealized gains on marketable equity securities recorded through earnings aggregated <br />$69,076 for the year ended December 31, 2017. <br /> <br />The Fair Value Measurements Topic of the Financial Accounting Standards Board (FASB) <br />Accounting Standards Codification (ASC) establishes a fair value hierarchy that prioritizes <br />the inputs to valuation techniques used to measure fair value. Fair value is the price that <br />would be received to sell an asset or paid to transfer a liability in an orderly transaction <br />between market participants at the measurement date. <br /> <br />Proceeds from sales of marketable equity securities for the year ended December 31, 2017 <br />amounted to $1,000, resulting in a realized gain of $77. Losses from adjustments to <br />marketable equity securities amounted to $3,707, resulting in net realized losses from <br />marketable equity securities of $3,630 for the year ended December 31, 2017. <br /> <br /> <br />See independent accountants’ review report. <br />-10-