As of September 30, 2021 and December 31, 2020, the Company held various equity interests in privately held cannabis companies as well as investments in convertible notes that had a combined fair value of $50,627,826 and $40,794,806 as of each period end, respectively. The Company measures its investments that do not have readily determinable fair value at cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company performs an assessment on a quarterly basis to determine whether triggering events for impairment exist and to identify any observable price changes.

The following table summarizes the change in the Company’s investments during the nine months ended September 30, 2021 and year ending December 31, 2020:


		September 30, 2021				December 31, 2020
Beginning	$		40,794,806		$		14,068,821
Additions			31,053,096				525,000
Disposals			(18,282,213	)			(169,818	)
Fair value adjustment			14,604,387				26,370,803
Transfers out			(17,542,250	)			—
Ending	$		50,627,826		$		40,794,806

During the three and nine months ended September 30, 2021 and 2020, the Company recorded fair value gains (losses) of $(4,074,934) and $14,604,387, respectively and $7,284,213 and $6,717,178, respectively.

On January 15, 2021, the Company sold approximately half of its equity interest in a privately held entity for $18,112,500 in cash. Subsequently, the privately held entity became publicly traded. As of the three and nine months ended September 30, 2021, Green Thumb recorded a loss on the fair value of the equity interest of $3,948,841 and a gain of $9,568,348, respectively, based on the trading price of the securities. As of September 30, 2021 and December 31, 2020, the fair value of the equity interest was $28,705,037 and $37,249,189, respectively.

Separately, during the first half of 2021, the Company made an additional investment in a privately held entity in the amount of $12,335,635, recorded fair value adjustments of $4,110,378 and obtained representation on the entity's board of directors. Given Green Thumb's cumulative ownership interest and representation on the entity's board of directors, it was determined that the Company could exert significant influence over the entity. As of June 30, 2021, the Company reclassified its investment in the privately held entity to investment in associates on the unaudited interim condensed consolidated balance sheets and began accounting for the investment as an equity method investment.

During the first nine months of 2021, the Company made multiple investments in the form of convertible notes receivable in the amount of $15,417,500 and an investment in a note receivable without a conversion feature in the amount of $1,500,000. The interest on the convertible notes receivable range between 0.91% - 10% with terms between 15 months to three years. The interest on the note receivable without conversion feature is 3% annually with a 180 day term. The calculated fair values are recorded as a Level 3 fair value investment as of September 30, 2021 and include the initial investment cost and contractual interest of $207,500. See Note 14 - Fair Value Measurements for additional details.