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Variable Interest Entities
12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
VARIABLE INTEREST ENTITIES VARIABLE INTEREST ENTITIES
As further discussed below, we were the primary beneficiary of three variable interest entities, of which two ceased operations in 2021 and one was deconsolidated during 2023. As of December 31, 2023, there were no combined book values of the assets and liabilities associated with these variable interest entities included in our consolidated balance sheet. As of December 31, 2022, the combined book values of the assets and liabilities associated with these variable interest entities included in our consolidated balance sheet were $17.5 million and $1.8 million, respectively. Assets included $4.4 million of cash and cash equivalents, $4.0 million of accounts receivable and prepaid assets, and $9.1 million of patents, net.
Convida Wireless
Convida Wireless was launched in 2013 and most recently renewed in 2021 to combine Sony's consumer electronics expertise with our pioneering IoT expertise to drive IoT communications and connectivity. Based on the terms of the agreement, the parties will contribute funding and resources for additional research and platform development, which we performed.
Convida Wireless is a variable interest entity. Based on our provision of research and platform development services to Convida Wireless, we determined that we were the primary beneficiary for accounting purposes and consolidated Convida Wireless through September 30, 2023. In October 2023, Convida Wireless appointed a President and Chief Licensing Officer who is responsible for directing the operating activities of Convida, including research and platform development services. Accordingly, we deconsolidated Convida Wireless during fourth quarter 2023.
For the years ended December 31, 2023, 2022 and 2021, we have allocated $3.0 million, $1.6 million and $10.8 million, respectively, of Convida Wireless' net loss to noncontrolling interests held by other parties. During 2021, we recognized a $13.2 million impairment on the patents within the Convida portfolio, resulting from our restructuring activities as described in Note 20, "Restructuring Activities", which is included within “Restructuring activities” expenses in the consolidated statement of income.
Chordant
On January 31, 2019, we launched the Company’s Chordant™ business as a standalone company. Chordant is a variable interest entity and we have determined that we were the primary beneficiary for accounting purposes and consolidated Chordant. For the year ended 2021, we allocated approximately $2.3 million of Chordant's net loss to noncontrolling interests held by other parties. Chordant ceased operations in 2021.
Signal Trust for Wireless Innovation
During 2013, we announced the establishment of the Signal Trust for Wireless Innovation (the “Trust”), the goal of which was to monetize a patent portfolio primarily related to 3G and LTE cellular infrastructure. During fourth quarter 2021, the Trust was fully dissolved and all remaining assets were transferred to us as majority beneficiary.
The Trust was accounted for as a variable interest entity. Based on the terms of the trust agreement, we determined that we were the primary beneficiary for accounting purposes and included the Trust in our consolidated financial statements up to the date of dissolution.