|12 Months Ended|
Dec. 31, 2022
The Company’s investments included the following:
On June 11, 2021, in connection with the sale of the Company’s member interests in Yaris Acquisition LLC d/b/a Blackbird (“Blackbird”), the Company settled a pre-existing senior secured promissory note due to the Company (the “Blackbird Note”) in exchange for 36,937 class B common shares of HERBL, Inc. (“HERBL”), and $1,500 cash. The fair value of the HERBAL shares was not readily determinable, and the Company elected to apply the measurement alternative. The initial cost applied was $6,400 with no adjustments through December 31, 2022. The Company intends to hold the HERBL investment until HERBL executes its next equity financing. The Company has an arrangement with HERBL that upon an equity financing, if the fair value of HERBL’s class B common shares is less than the initial cost, HERBL will issue additional shares to make up the difference.
In November 2018, the Company acquired class A membership units of Big Toe Ventures LLC (”Big Toe”) in exchange for $1,000 cash. The fair value of the Big Toe investment was not readily determinable, and the Company elected to apply the measurement alternative. The initial cost applied was $1,000. During 2021 the Company identified impairment and adjusted the balance to $196. During 2022 the Company identified impairment and adjusted the balance to zero. The impairment losses of $196 and $804 for the years ended December 31, 2022 and 2021, respectively, were included in unrealized loss on investment on the consolidated statements of operations and comprehensive loss.
As of December 31, 2021, the Company held 58,293 shares of Akerna Corp. (“Akerna”), which shares are listed on the Nasdaq Capital Market under the symbol “KERN”. On November 8, 2022, Akerna effected a 20-for-1 reverse stock split which resulted in the Company’s shares being reduced to 2,915. During the years ended December 31, 2022 and 2021, the Company recorded an unrealized losses on investment of $100 and $87, respectively included in unrealized loss on investment in the consolidated statements of operations and comprehensive loss.
The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef