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EQUITY INVESTMENTS

3 Months Ended

Mar. 31, 2025

7. EQUITY INVESTMENTS

Equity Method Investments

The changes in our equity method investments were as follows:


	Three Months Ended
	March 31,
	2025		2024

	(in thousands)
Beginning balance	$	35,532	$	46,503
Contributions		878		625
Net loss on equity method investments		(2,006)		(553)
Distributions received		(849)		(882)
Ending balance	$	33,555	$	45,693

Net loss on equity method investments represents our share of the income or loss of the equity method investments.

Infinitum

During 2022, we purchased $42.0 million of Series D Preferred Stock (“Series D Preferred Stock”) in Infinitum Electric, Inc. (“Infinitum”), a Texas-based startup developer and manufacturer of electric motors featuring printed circuit board stators. On September 8, 2023, we purchased $24.6 million of Series E Preferred Stock (“Series E Preferred Stock” and, together with the “Series D Preferred Stock,” the “Infinitum Preferred Stock”) in Infinitum. The Infinitum Preferred Stock provides for non-cumulative dividends when and if declared by Infinitum’s board of directors. Each share of Infinitum Preferred Stock is convertible, at any time, at our option, into shares of common stock of Infinitum. We account for our ownership interest in Infinitum as an equity investment without a readily determinable fair value. Absent an observable price change, it is not practicable to estimate the fair value of our investment in Infinitum because of the lack of a quoted market price for our ownership interests. Therefore, we use a measurement alternative other than fair value to account for our investment.

Ascend

On August 22, 2023, we purchased $25.0 million of Series D Preferred Stock (the “Ascend Preferred Stock”) in Ascend Elements, Inc. (“Ascend”), a U.S.-based manufacturer and recycler of sustainable, engineered battery materials for electric vehicles. The Ascend Preferred Stock provides for non-cumulative dividends when and if declared by Ascend’s board of directors. Each share is convertible, at any time, at our option, into shares of common stock of Ascend. We account for our ownership interest in Ascend as an equity investment without a readily determinable fair value. Absent an observable price change, it is not practicable to estimate the fair value of our investment in Ascend because of the lack of a quoted market price for our ownership interests. Therefore, we use a measurement alternative other than fair value to account for our investment. As a development stage company, Ascend depends primarily on capital contributions to meet its operating and debt obligations. Additional capital contributions or conversion of our investment into common stock of Ascend could impact the preference of our investment relative to other investments in Ascend or dilute our holdings. If Ascend is unable to raise sufficient funds or if our investment loses preference or becomes diluted due to new capital contributions, it could have an adverse effect on our investment.