Investments |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | 6. INVESTMENTS
As of December 31, 2023 and 2022, the Company held various equity interests in cannabis companies as well as investments in convertible notes that had a combined fair value of $64,361 thousand and $74,169 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, 2023 and 2022:
The following table summarizes the fair value change in the Company's investments recorded during the years ended December 31, 2023, 2022 and 2021.
The Company recorded fair value gains (losses) related to equity and note receivable investments within other income (expense) and accrued interest to interest income on the consolidated statements of operations.
(a) Equity Investments
For the years ended December 31, 2023 and 2022, the Company held equity investments in publicly traded entities which have readily determinable fair values, which are classified as Level 1 investments, of $2,001 thousand and $2,535 thousand, respectively. During the years ended December 31, 2023, 2022 and 2021, the Company received proceeds from the sale of such investments of $198 thousand, $2,488 thousand and $18,417 thousand, respectively. The Company recorded net (losses) gains on the change in fair value of such investments of $(336) thousand, $(15,560) thousand and $828 thousand during the years ended December 31, 2023, 2022 and 2021, 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.
For the years ended December 31, 2023 and 2022, 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 $25,953 thousand and $40,330 thousand, respectively. There were no sales of these investments during the years ended December 31, 2023, 2022 and 2021. The Company recorded net (losses) gains on the change in fair value of such investments of $(20,377) thousand, $(1,518) thousand and $5,127 thousand during the years ended December 31, 2023, 2022 and 2021, 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.
See Note 14—Fair Value Measurements for additional details.
6. INVESTMENTS (Continued)
(a) Equity Investments (Continued)
Unrealized gains (losses) recognized on equity investments held during the years ended December 31, 2023, 2022 and 2021 were $(20,660) thousand, $(16,910) thousand, and $6,377 thousand, respectively.
(b) Note Receivable Instruments
As of December 31, 2023 and 2022, 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 $22,214 thousand each year. There were no gains (losses) recognized on these investments during the years ended December 31, 2023 and 2021. During the year ended December 31, 2022, the Company recorded net losses on the change in fair value of such investments of $237 thousand, within other income (expense) on the consolidated statement of operations. There were no proceeds received on these investments during the years ended December 31, 2023 and 2021. During the year ended December 31, 2022, the Company received proceeds from the partial principal repayment of the note receivable of $1,083 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 trading securities on the Company's consolidated balance sheet.
As of December 31, 2023 and 2022, 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 $14,193 thousand and $9,090 thousand, respectively, with stated interest ranging between 0.91% - 10% and terms between 15 months to five years. During the years ended December 31, 2023 and 2022, the Company recorded gain (losses) on the change in fair value of such investments of $2,845 thousand and $(5,955) thousand, respectively, within other income (expense). There were no gains (losses) recognized on these investments during the year ended December 31, 2021. The combined fair value amounts include the initial investment cost and combined contractual accrued interest of $408 thousand, $664 thousand and $422 thousand for the years ended December 31, 2023, 2022 and 2021. These notes are classified as trading securities on the Company's consolidated balance sheet.
See Note 14—Fair Value Measurements for additional details. |