5. INVESTMENTS

As of June 30, 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 $30,347 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.

(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.

Unrealized loss recognized on the Company's equity investments held during the three and six months ended June 30, 2026 was $1,304 thousand. There was no unrealized gain or (loss) recognized on the Company's equity investments held during the three and six months ended June 30, 2025.

As of June 30, 2026, the Company held no Level 1 equity investments.

See Note 14 - Fair Value Measurements for additional details.

5. INVESTMENTS (Continued)

(b) Notes Receivable Instruments

The Company invests in both publicly traded and privately held cannabis and cannabis-related companies by, among other things, 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 June 30, 2026, the Company held no Level 1 notes receivable instruments.

The Company's Level 3 notes receivable instruments had a stated interest rate of 10% and terms of five years.

See Note 14 - Fair Value Measurements for additional details.