XML 57 R14.htm IDEA: XBRL DOCUMENT v3.20.4
Investments
12 Months Ended
Dec. 31, 2020
Investments Debt And Equity Securities [Abstract]  
Investments

7. Investments

Other investments

Long-term investments are comprised of the following items:

 

 

 

December 31, 2020

 

 

December 31, 2019

 

Equity investments measured at fair value

 

$

477

 

 

$

4,183

 

Equity investments under measurement alternative

 

 

11,392

 

 

 

14,954

 

Debt securities classified under available-for-sale method

 

 

2,500

 

 

 

5,047

 

Total other investments

 

$

14,369

 

 

$

24,184

 

 

The Company’s equity investments at fair value consist of publicly traded shares and warrants held by the Company. The Company’s equity investments under measurement alternative include equity investments without readily determinable fair values. At December 31, 2020 the Company’s debt securities under available-for-sale method consists of a convertible debt instrument with an interest rate of 10% and with contractual maturity in 2022. The Company has negotiated a settlement of this instrument with the lender prior to its contractual maturity for $2,500 due in February 2021, as such the instrument is held at the expected settlement value as of December 31, 2020.

For the year ended December 31, 2020, there was $2,440 (2019- $0) realized loss recognized related to equity investments at fair value. Unrealized losses recognized in other income, net during the year ended December 31, 2020 on equity investments still held at December 31, 2020 is $4,283 (2019 - $939). During 2020 an equity investment under the measurement alternative became publicly traded and its remaining shares are now held as an equity method investment measured at fair value which contributed to unrealized losses during the period.

Equity method investments

On December 31, 2018, the Company entered into a joint venture with Anheuser-Busch InBev (“AB InBev”) to research and develop non-alcohol beverages containing cannabis. Under the terms of the arrangement, the Company and AB InBev each have 50% ownership and 50% voting interest in the Plain Vanilla Research Limited Partnership (“Fluent”), headquartered in Canada. The Company has determined that Fluent is a VIE, but the Company is not the primary beneficiary as the Company does not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. Accordingly, the Company does not consolidate the financial statements of Fluent and accounts for this investment using the equity method of accounting. At the date of initial investment there was no difference in the carrying value of the investment and the proportional interest in the underlying equity in the net assets of Fluent. At December 31, 2020 the maximum exposure to loss is limited to the Company’s equity investment in the joint venture.

The Company has made capital contributions of $3,764 (2019 - $12,000, 2018 - $0) to Fluent during the year ended December 31, 2020. In addition, the Company had purchased $4,300 of equipment which was subsequently sold to Fluent at the net book value of $4,300 during the year ended December 31, 2019.

The Company provides production support services to Fluent on a cost recovery basis. During the year ended December 31, 2020, total fees charged were $4,113 (2019 - $388). Total amounts included in accounts payable is $674 at Dec 31, 2020 (December 31, 2019 - $388).

On September 19, 2019, the Company entered into a joint venture with Cannfections Group Inc. (“Cannfections”) to develop and manufacture confectionary cannabis products. Under the terms of the arrangement, the Company and Cannfections each have 50% ownership and 50% voting interest. At the date of initial investment, there was no difference in the carrying value of the investment and the proportional interest in the underlying equity in the net assets of Cannfections. During the year ended December 31, 2020 the company incurred $436 in expenses for purchases from Cannfections (2019 - $84). During the year ended December 31, 2020 the Company made no contributions to the joint venture. During the year ended December 31, 2019, the Company contributed $3,600 to the joint venture, consisting of $1,901 of cash and $1,699 of Class 2 common stock.

The Company’s ownership interests in its equity method investments as of December 31, 2020 and 2019 were as follows:

 

 

 

Approximate

 

 

Carrying value

 

 

Loss from equity

method investments

Year ended

 

 

 

ownership %

 

 

December 31, 2020

 

 

December 31, 2020

 

Investment in Fluent

 

50%

 

 

$

5,291

 

 

$

(6,253

)

Investment in Cannfections

 

50%

 

 

 

4,009

 

 

 

270

 

Total equity method investments

 

 

 

 

 

$

9,300

 

 

$

(5,983

)

 

 

 

Approximate

 

 

Carrying value

 

 

Loss from equity

method investments

Year ended

 

 

 

ownership %

 

 

December 31, 2019

 

 

December 31, 2019

 

Investment in Fluent

 

50%

 

 

$

7,836

 

 

$

(4,437

)

Investment in Cannfections

 

50%

 

 

 

3,612

 

 

 

(67

)

Total equity method investments

 

 

 

 

 

$

11,448

 

 

$

(4,504

)

 

Summary financial information for the equity method investments on an aggregated basis was as follows:

 

 

 

December 31, 2020

 

 

December 31, 2019

 

Current assets

 

$

12,644

 

 

$

13,942

 

Non current assets

 

$

6,608

 

 

$

4,987

 

Current liabilities

 

$

5,663

 

 

$

1,561

 

Non current liabilities

 

$

 

 

$

 

 

 

 

Year ended

 

 

Year ended

 

 

 

December 31, 2020

 

 

December 31, 2019

 

Revenues

 

$

5,844

 

 

$

113

 

Gross profit

 

$

2,118

 

 

$

78

 

Net loss

 

$

(11,966

)

 

$

(9,008

)