Investments |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments | 5. INVESTMENTS
As of March 31, 2026 and December 31, 2025, 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 $32,664 thousand and $32,720 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 three months ended March 31, 2026 and year ended December 31, 2025:
(a) Equity Investments
The Company invests in both publicly traded and privately held cannabis and cannabis-related companies. 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 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 sheet. There were no unrealized gains or losses recognized on the Company's equity investments held during the three months ended March 31, 2026 and 2025.
As of March 31, 2026, the Company held no Level 1 equity investments.
The fair value of Company's Level 3 equity investments as of the three months ended March 31, 2026 and 2025 was $29,775 thousand and $36,487 thousand, respectively. During the three months ended March 31, 2026 and 2025, the Company's Level 3 equity investments had no changes in fair value.
See Note 12 - 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.The Company has classified all of its notes receivable instruments as trading securities and included such amounts within investments on the Company's unaudited interim condensed consolidated balance sheets.
As of March 31, 2026, 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 months ended March 31, 2026 and 2025:
The Company's Level 3 notes receivable instruments had stated interest rates of 10.0% and terms of five years.
See Note 12 - Fair Value Measurements for additional details. |
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