As of December 31, 2021 and December 31, 2020, the Company held various equity interests in privately held cannabis companies as well as investments in various notes receivables that had a combined fair value of $94,902 thousand and $40,795 thousand 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 years ended December 31, 2021 and 2020:


		December 31, 2021				December 31, 2020
	(in thousands)
Beginning	$		40,795		$		14,069
Additions			83,689				525
Disposals			(18,417	)			(170	)
Fair value adjustment			6,377				26,371
Transfers out			(17,542	)			—
Ending	$		94,902		$		40,795

For the year ended December 31, 2021, the Company recorded net fair value gains of $6,377, of which $5,955 thousand relates to equity investments and was recorded within other income (expense) and $422 thousand relates to various note receivable investments and was recorded to interest income on the consolidated statement of operations. For the years ended December 31, 2020 and 2019, the Company recorded net fair value gains of $26,371 thousand and $(4,061) thousand, respectively, within other income (expense) on the consolidated statement of operations.

For the years ended December 31, 2021 and 2020, the Company held equity investments in publicly traded entities which have readily determinable fair values, which are classified as Level 1 investments, of $20,583 thousand and $924 thousand, respectively. During the years ended December 31, 2021 and 2020, the Company received proceeds from the sale of such investments of $18,417 thousand and $170 thousand, respectively. The Company recorded net gains on the change in fair value of such investments of $828 thousand and $423 thousand during the years ended December 31, 2021 and 2020, respectively, within other income (expense) on the consolidated statement of operations. There were no gains (losses) on the change in fair value of such investments during the year ended December 31, 2019. These investments are classified as trading securities on the Company's consolidated balance sheet.

For the years ended December 31, 2021 and 2020, the Company held equity investments in privately held entities that did not have readily determinable fair values, which are classified as Level 3 investments, of $33,066 thousand and $39,871 thousand, respectively. There were no sales of these investments during the years ended December 31, 2021 and 2020. The Company recorded net gains (losses) on the change in fair value of such investments of $5,127 thousand, $25,948 thousand and $(4,061) thousand, respectively, within other income (expense) on the consolidated statement of operations. These investments are classified as trading securities on the Company's consolidated balance sheet.

During the year ended December 31, 2021, the Company transferred $17,542 thousand of its investment in a privately held entity without readily determinable fair value to investment in associate based on the Company's ownership percentage and its ability to exert significant influence over the entity. As a result of the change, the Company began accounting for the investment as an equity method investment. Equity income (loss) recorded during the year ended December 31, 2021 was not material to the Company. No such transfers occurred during the year ended December 31, 2020.

Unrealized gains and (losses) recognized on equity investments held during the years ended December 31, 2021, 2020 and 2019 were $6,377 thousand, $26,371 thousand, and ($4,061) thousand, respectively.

During the year ended December 31, 2021, the Company made multiple investments in various note receivable instruments, including note receivable instruments with conversion features.

As of December 31, 2021, the Company held note receivable instruments, which were classified as a Level 1 investment as they represent public debt of a publicly traded entity, and had a fair value of $23,534 thousand. The note receivable instruments had a stated interest rate of 13% and a maturity date of April 29, 2025. These notes did not contain conversion features and are currently classified as held-to-maturity securities on the Company's consolidated balance sheet.

As of December 31, 2021, the Company held note receivable instruments which were classified as Level 3 investments as they represent loans provided to privately held entities that do not have readily determinable fair values. The note receivable instruments had a combined fair value of $17,719 thousand, with stated interest ranging between 0.91% - 10% and terms between 15 months to three years. The combined fair value amounts include the initial investment cost and combined contractual accrued interest of $422 thousand. These note are classified as trading securities on the Company's consolidated balance sheet.

As of December 31, 2020, the Company did not own any Level 1 or Level 3 investments in such note receivable instruments.