Investments |
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| Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments | 5. INVESTMENTS
As of June 30, 2025 and December 31, 2024, the Company held various equity interests in cannabis-related companies as well as investments in note(s) receivable instruments that had a combined fair value of $43,836 thousand and $43,578 thousand, 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 changes in the Company’s investments during the six months ended June 30, 2025 and year ended December 31, 2024:
The following table summarizes the change in fair value associated with the Company's equity investments and notes receivable instruments recorded during the three and six months ended June 30, 2025 and 2024.
(a) Equity Investments
The Company held equity investments in both publicly and privately traded entities. Generally, publicly traded entities have readily determinable fair values and are classified as Level 1 investments. Meanwhile, non-publicly traded entities generally do not have readily determinable fair values and are are classified as Level 3 investments. The Company has classified all of its holdings as trading securities and recorded such amounts within investments on the Company's unaudited interim condensed consolidated balance sheets.
The following table summarizes the change in the Company's Level 1 equity investments during the three and six months ended June 30, 2025 and 2024.
On July 17, 2024, the Company sold all remaining Level 1 equity investments. As of June 30, 2025, the Company held no Level 1 equity investments.
5. INVESTMENTS (Continued)
(a) Equity Investments (Continued)
The following table summarizes the change in the Company's Level 3 equity investments during the three and six months ended June 30, 2025 and 2024.
The following table summarizes unrealized (losses) gains recognized on the Company's equity investments held during the three and six months ended June 30, 2025 and 2024.
See Note 13 - Fair Value Measurements for additional details.
(b) Notes Receivable Instruments
The Company invests in both publicly traded and privately held cannabis and cannabis-related companies by providing financing through notes receivable instruments. The fair value of these notes receivable instruments include the initial investment and contractual accrued interest recorded within interest income on the unaudited interim condensed consolidated statements of operations.
All of the Company's notes receivable instruments are classified as trading securities and are included within investments on the Company's unaudited interim condensed consolidated balance sheets.
The following table summarizes the change in the Company's Level 1 note receivable instrument during the three and six months ended June 30, 2025 and 2024.
On November 27, 2024, the Company collected the remaining principal balance of the notes receivable instruments along with accrued interest. Consequently, as of June 30, 2025, the Company held no Level 1 notes receivable instruments.
5. INVESTMENTS (Continued)
(b) Notes Receivable Instruments (Continued)
The following table summarizes the change in the Company's Level 3 notes receivable instruments during the three and six months ended June 30, 2025 and 2024.
The Company's Level 3 notes receivable instruments had a stated interest rate of 10% and terms between twelve months and five years.
On January 9, 2024, one of the Company's privately held notes receivable instruments matured and the Company collected the principal balance of $4,000 thousand and accrued interest of $605 thousand. Proceeds associated with other Level 3 notes receivable instruments made up the balance of the activity.
See Note 13 - Fair Value Measurements for additional details. |
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