Equity Method Investments

6 Months Ended

Dec. 31, 2020

6. Equity Method Investments

Our investment in Spartacus Sponsor LLC (the “Sponsor”) of $3,850,000 is accounted for under the equity method and is included within equity method investment in our consolidated balance sheet as of December 31, 2020. Our ownership percentage in the Sponsor, which is recorded under the equity method investment, is 38.5%. The Company could potentially increase its investment through grants of additional units up to 44.5% subject to certain return hurdles for the Sponsor. As of December 31, 2020, the Sponsor controls all of the founders’ shares of Spartacus Acquisition Corporation (“Spartacus”). During the three and six months ended December 31, 2020, we recorded $53,000 of losses from this investment as equity in net loss from equity method investment within our consolidated statements of operations.

On October 19, 2020, Spartacus completed its initial public offering (“IPO”). In connection with the IPO, the Sponsor, of which the Company is a Managing Member and holds 50% voting control, purchased 8,104,244 warrants at a price of $1.00 per warrant. Each warrant is exercisable into one share of Spartacus’ Class A common stock at a price of $11.50 per share. Spartacus is a newly organized special-purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses, which is referred to as an initial business combination.

Summarized financial information relating to our equity method investment is as follows (amounts in thousands):


	Three Months Ended		Six Months Ended
	December 31,		December 31,
	2020		2020
Statements of Operations:
Operating loss	$	138	$	138
Net loss	$	138	$	138


	December 31,
	2020
	(Amounts in thousands)
Balance Sheets:
Current assets	$	204,162
Current liabilities		10
Long-term liabilitiies		199,286