EQUITY METHOD INVESTMENTS |
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| Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EQUITY METHOD INVESTMENTS | NOTE 3—EQUITY METHOD INVESTMENTS
Investment in NewStem
The Company held a 31% interest in NewStem until its liquidation in August 2025.
The Company accounted for its investment in NewStem under the equity method. NewStem was a development stage company which incurred losses from inception and generated only minimal revenues under a licensing agreement.
The Company assessed its investment in NewStem for impairment on an annual basis or more frequently if indicators of impairment existed. During the year ended December 31, 2024, indicators of impairment became evident due to the inability of NewStem to raise funds. Due to the inability to raise funds, NewStem was unable to continue operations and was liquidated. The intangible assets of NewStem, including license agreements (the “License”), have reverted to the licensor, Yissum (the commercial division of Hebrew University). The Company has reached an agreement with Yissum regarding the potential monetization of these intangible assets which provides for funds to be received by the Company in the event of re-licensing or monetizing the licenses or related technology developed by NewStem. Due to the current uncertainty of the recovery of any value from these intangible assets and the liquidation status of NewStem, the Company fully impaired the investment in NewStem during the year ended December 31, 2024. On August 14, 2025, the Company received $5,432 from NewStem upon the final closing of their accounts and in October 2025, the Company wrote off all asset accounts and the related impairment and ceased accounting for NewStem.
Investment in NetCo
Until May 2025, NovelStem owned a 50% interest in NetCo, a joint venture that owns the Net Force publishing franchise. On May 9, 2025, the Company entered into a Settlement Agreement and Release whereby the investment in NetCo was sold to the Company’s JV partner, C. P. Group, Inc. (“CP Group”), for $1,300,000 to settle the related litigation funding liability to Omni Bridgeway in full. This transaction was fully consummated as funds were received by Omni Bridgeway from CP Group pursuant to the terms of the agreement.
The following table represents the Company’s investment in NetCo:
The results of operations of the Company’s investment in NetCo is summarized below (unaudited):
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