Note 2 - Investments

9 Months Ended

Sep. 30, 2015

Cost and Equity Method Investments Disclosure [Text Block]

NOTE 2 – INVESTMENTS

Investment in Real Property Tax Liens

– At September 30, 2015, the Company held $26,386 of real property tax liens, carried at lower of cost or estimated net realizable value, from various municipalities in New Jersey. The New Jersey municipal tax liens are receivable from the real property owners and are secured by a first priority lien on the related real property. Upon foreclosure, the Company would obtain ownership of the real property. The tax lien receivables accrue interest up to 18% per annum, accrue penalties at 2% to 6% and are also increased by the amount of any collection expenses incurred. Additional investments in real property tax liens were made during the nine months ended September 30, 2015 in the amount of $3,698. The investment in the real property tax liens are accounted for as an investment in troubled debts and are carried at cost. Collection of interest, penalties and expense reimbursements is not certain and is recognized upon being realized.

Investment in Available for Sale Debt Securities

Debt and Equity Securities		Cost Basis				Unrealized Gains				Unrealized Losses				Fair Value
Corporate Debt Securities		$	22,734			$	1,284			$	-			$	24,018

The corporate debt securities mature on August 31, 2018 and May 29, 2020.

EROOMSYSTEM TECHNOLOGIES INC 10-Q