Investments in equity securities |
12 Months Ended |
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Dec. 31, 2025 | |
| Investments, All Other Investments [Abstract] | |
| Investments in equity securities | 7. Investments in equity securities
In conjunction with completion of the merger with Engine Gaming & Media, Inc. on April 11, 2023, the Company acquired an 18.62% interest in One Up Group, LLC (“One Up”). One Up operates a mobile app which allows gamers to organize and play one-on-one matches with other gamers and compete for money.
The April 11, 2023 acquisition date fair value of investment was $3.2 million. The Company accounts for the investment in One Up in accordance with the provisions of ASC 321 and, because the investment in One Up does not have a readily determinable fair value, elected to use the measurement alternative therein. The investment is re-measured upon future observable price changes in orderly transactions or upon impairment, if any.
One Up completed an equity offering on December 22, 2023, representing an observable price change. As a result of this observable price change, the Company reduced the value of One Up to $2.2 million.
No other observable price changes occurred during the years ended December 31, 2025 and 2024.
The Company monitors the investment for indicators of impairment each reporting period. Indicators considered include, but are not limited to, deterioration in the financial condition and near-term prospects of the investee, adverse changes in the industry or regulatory environment in which the investee operates, significant changes in the investee’s operating performance or business strategy, and other relevant qualitative and quantitative factors.
Subsequent to December 31, 2025, the Company entered into a share purchase agreement with One Up, wherein One Up acquired the Company’s interest in One Up for $ thousand. Accordingly, the Company recognized an impairment loss of $ million during the year ended December 31, 2025, which is included in change in fair value of investment in the accompanying consolidated statement of operations and comprehensive loss.
In addition, in connection with the acquisition of Click, the Company acquired a minority interest in BackBone Labs, Inc., a company that develops mobile gaming controllers and related technology, enabling users to play console-quality games on mobile devices. The investment had an acquisition date fair value on September 11, 2025 of $0.1 million (see Note 4).
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