Note 4. Equity Holdings

As of September 30, 2026 and December 31, 2025, the Company’s equity holdings consisted of the following ($ in thousands):

 Schedule of Equity Holdings

Gain (loss) on equity holdings for the three and nine months ended September 30, 2026 and September 30, 2025 were as follows (in thousands):

 Schedule of Net Holdings Loss

During the three and nine months ended September 30, 2026, the Company recorded an equity method gain on the shares of Saltire (as defined below) of $0.8 million and $2.4 million, respectively. During the second quarter of 2026, Saltire issued common shares in connection with an acquisition at a price below the Company’s carrying value. As a result, management evaluated whether the observed transaction was an indicator of an other than temporary impairment. Management considered many factors, including a prolonged period during which the trading price of Saltire’s common shares remained at a level below the investor’s cost and determined an other-than-temporary impairment existed. The Company used the trading price of Saltire’s common shares as of June 30, 2026 to determine the fair value of its equity method holding in Saltire and recorded an impairment charge of $11.2 million during the second quarter of 2026, which is included in (loss) gain on equity method holdings in the table above.

During the three and nine months ended September 30, 2025, the Company recorded an equity method loss on the shares of Saltire of $6.6 million and $4.6 million, respectively. The remainder of the net loss on equity holdings and other holdings for the three and nine months ended September 30, 2025 related to holdings distributed to the CVR Trust in August 2025.

Equity Method Holdings

Saltire Capital Ltd.

As of September 30, 2026, the Company held approximately 22.6% of the outstanding common shares of Saltire Capital Ltd. (“Saltire”). Based on quoted market prices, the market value of the Company’s ownership in common shares of Saltire was $4.3 million at September 30, 2026.

Devondale Holdings LLC

As discussed in Note 3, the Company entered into an agreement for the sale of its reinsurance business to Devondale. As a result of the transaction, the Company received a 40% equity interest in Devondale. The Company recorded an equity method loss of $0.4 million during the three months ended September 30, 2026 and a gain of $9 thousand during the nine months ended September 30, 2026 related to its equity interest in Devondale.

Cost Method Holdings without Readily Determinable Fair Value

In addition to our equity method holdings, other holdings which do not have a readily determinable fair value are accounted for at their cost, subject to any adjustment from time to time due to impairment or observable price changes in orderly transactions. When the Company observes an orderly transaction of an investee’s identical or similar equity securities, the Company adjusts the carrying value based on the observable price as of the transaction date. Any profit distributions the Company receives on these holdings are included in Gain (loss) on equity holdings.

USFM Corporation

During the first quarter of 2026, the Company entered into a subscription agreement with USFM Corporation (“USFM”) pursuant to which the Company purchased 7,500 common shares of USFM at a total cost of $0.5 million. During the second quarter of 2026, the Company entered into a subscription agreement with USFM pursuant to which the Company purchased an additional 6,924 common shares of USFM at a total cost of $1.0 million. The common shares purchased during the second quarter of 2026 are identical to the common shares the Company purchased during the first quarter of 2026. As a result, the Company adjusted the carrying value of the shares purchased during the first quarter of 2026 and recorded a gain on cost method holdings of $0.6 million during the second quarter of 2026. USFM, a private entity, is a mineral exploration company. Management is not aware of any issuances of identical or similar equity securities after the Company’s purchase of USFM’s common stock during the second quarter of 2026.

FG Communities Inc.

During the third quarter of 2026, the Company entered into a subscription agreement with FGCI pursuant to which the Company purchased approximately 1.8 million common shares of FGCI at a total cost of $10.0 million. FGCI is a privately held self-administered and self-managed real estate company focused on preserving and improving affordable housing through the acquisition and operation of manufactured housing communities. The Company’s investment represents approximately 8.2% of the outstanding common stock of FGCI as of September 30, 2026, however the investment represents approximately 1.5% of the effective voting securities of FGCI as of September 30, 2026. Management is not aware of any issuances of identical or similar equity securities after the Company’s purchase of FGCI’s common stock during the third quarter of 2026 that would result in potential adjustments to the Company’s carrying value. The Board of Directors of FGCI has declared a cash dividend on the common shares of 4.0% of the original issue price ($5.50 per share). The dividend is paid monthly, and unless the Company has affirmatively elected to receive cash, all dividends paid on the common shares will be automatically reinvested in additional common shares of FGCI. The Company has not elected to receive cash dividends in lieu of additional common shares. As a result, the Company expects to receive additional shares of FGCI as the dividends are paid.

Impairment

For equity securities without readily determinable fair values, impairment is determined via a qualitative assessment which considers indicators to evaluate whether the holding is impaired. Some of these indicators include a significant deterioration in the earnings performance or asset quality of the investee, a significant adverse change in regulatory, economic or general market conditions in which the investee operates, or doubt over an investee’s ability to continue as a going concern. If the holding is deemed to be impaired after conducting this analysis, management would estimate the fair value of the holding to determine the amount of impairment loss.

For equity method holdings, evidence of a loss in value might include a series of operating losses of an investee, the absence of an ability to recover the carrying amount of the holding, or a deterioration in the value of the investee’s underlying assets. If these, or other indicators, lead to the conclusion that there is a decrease in the value of the holding that is other than temporary, the Company would recognize that decrease in value even though the decrease may be in excess of what would otherwise be recognized under the equity method of accounting.

The risks and uncertainties inherent in the assessment methodology used to determine impairment include, but may not be limited to, the following:

As discussed above, the Company recorded an $11.2 million impairment on its Saltire equity method holding during the second quarter of 2026. The Company did not record an impairment on its cost method holding during the nine months ended September 30, 2026.

Fair Value Method Holding

During the second quarter of 2026, pursuant to the Forward Purchase Agreement (as defined below) the Company purchased approximately 1.5 million shares of FG Merger II Corp (“FGMC”) at a total cost of approximately $15.5 million. Based on the quoted market price of FGMC’s common shares as of June 30, 2026, the Company recorded an unrealized loss on fair value holdings of $0.5 million during the second quarter of 2026. In July 2026, as a result of the completion of the merger of FGMC and BOXABL, the Company’s shares of FGMC were redeemed for approximately $15.5 million in cash. Since the Company received cash equal to its initial investment during the third quarter of 2026, the Company adjusted the unrealized loss recorded during the second quarter of 2026.