XML 83 R13.htm IDEA: XBRL DOCUMENT v3.22.4
INVESTMENTS ACCOUNTED FOR AT FAIR VALUE
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
INVESTMENTS ACCOUNTED FOR AT FAIR VALUE INVESTMENTS ACCOUNTED FOR AT FAIR VALUE
The Company accounts for its investments in CUR and Virginia Energy at fair value. On January 24, 2023, CUR completed its acquisition of Virginia Energy whereby CUR acquired all of the issued and outstanding common shares of Virginia Energy. See Note 18 – Subsequent Events for more information.
CUR
On October 27, 2021, the Company obtained a 19.9% ownership interest in CUR. See Note 7 – Property, Plant and Equipment and Mineral Properties. The investment gives the Company significant influence, but not control, over CUR’s operations. As of December 31, 2022 and 2021, the Company held an ownership interest in CUR of 17.4% and 19.1%. As of December 31, 2022 and 2021, the fair value of the Company’s investment in CUR is $16.50 million and $32.23 million, respectively. The Company recognized a loss of $14.31 million for the year ended December 31, 2022 and a gain of $0.72 million for the year ended December 31, 2021 related to this investment in Other income (loss) in the Consolidated Statement of Operations and Comprehensive Income (Loss).
Pursuant to Rule 3-09 of Regulation S-X (“Rule 3-09”), the Company is required to file separate audited financial statements of CUR if either the investment test or income test as set forth in that rule equals or exceeds the 20% level individually. As of December 31, 2022, the income test was met at the 20% significance level for CUR. The Company will amend this Annual Report to include the separate audited financial statements of CUR as an exhibit when they become available.
In accordance with Rule 4-08(g) of Regulation S-X (“Rule 4-08(g)”), the summarized financial information for CUR is set forth below on a one-quarter lag, which precedes the date of the Company’s investment for the year ended December 31, 2021. CUR prepares its financial statements in accordance with International Financial Reporting Standards (“IFRS”) and uses Cdn$ as its reporting currency. As such, the Company has made certain adjustments to CUR’s summarized financial information to address differences between IFRS and GAAP that materially impact the summarized financial information and to convert such information to USD.
September 30,
20222021
Current assets$16,586 $16,733 
Non-current assets$17,437 $11,455 
Current liabilities$2,285 $3,119 
Non-current liabilities$— $27 
Twelve Months Ended September 30,
20222021
Loss from continuing operations$(23,103)$(4,253)
Net loss and net loss attributable to the entity$(17,890)$(4,570)

Virginia Energy
As of December 31, 2022 and 2021, the Company held a 13.5% and 14.8% ownership interest in its investment in Virginia Energy, respectively. The fair value of the Company's investment in Virginia Energy was $2.83 million and $6.31 million as of December 31, 2022 and 2021, respectively. The Company recognized a loss of $3.22 million, a gain of $5.59 million and a gain of $1.73 million for the years ended December 31, 2022, 2021 and 2020, respectively, related to this investment in Other income (loss) in the Consolidated Statements of Operations and Comprehensive Income (Loss).
Pursuant to Rule 3-09, the Company is required to file separate audited financial statements of Virginia Energy if either the investment test or income test as set forth in that rule equals or exceeds the 20% level individually. As of December 31, 2021, the income test was met at the 20% significance level for Virginia Energy. The Company will amend this Annual Report to include the separate audited 2021 financial statements and unaudited financial statements for 2022 of Virginia Energy as an exhibit when they become available.
In accordance with Rule 4-08(g), summarized financial information for Virginia Energy is set forth below on a one-quarter lag. Virginia Energy prepares its financial statements in accordance with IFRS. The Company determined that no adjustments to Virginia Energy’s summarized financial information were necessary to address differences between IFRS and GAAP that materially impact the summarized financial information.
September 30,
20222021
Current assets$163 $548 
Non-current assets$3,753 $3,753 
Current liabilities$223 $278 
Non-current liabilities$2 $2 

Twelve Months Ended September 30,
202220212020
Loss from continuing operations, net loss and net loss attributable to the entity$(371)$(275)$(20,150)
FAIR VALUE ACCOUNTING
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables set forth the fair value of the Company’s assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy as of December 31, 2022 and 2021. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
Fair value accounting utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2 – Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and
Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
The Company's financial instruments include cash and cash equivalents, restricted cash, accounts receivable, accounts payable and current accrued liabilities. These instruments are carried at cost, which approximates fair value due to the short-term maturities of the instruments. Allowances for doubtful accounts are recorded against the accounts receivable balance to estimate net realizable value. The Company’s investments in marketable equity securities are publicly traded stocks measured at fair value and classified within Level 1 and Level 2 in the fair value hierarchy. Level 1 marketable equity securities use quoted prices for identical assets in active markets, while Level 2 marketable equity securities utilize inputs based upon quoted prices for similar instruments in active markets. The Company's investments in marketable debt securities are valued using quoted prices of a pricing service and as such, are classified within Level 2 of the fair value hierarchy. The Company’s investments accounted for at fair value consisting of Common Shares are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy. The Company’s investments accounted for at fair value consisting of warrants are valued using the Black-Scholes option model based on observable inputs and as such are classified within Level 2 of the hierarchy.
As of December 31, 2022 and 2021, the fair values of cash and cash equivalents, restricted cash, short-term deposits, receivables, accounts payable and accrued liabilities approximate their carrying values because of the short-term nature of these instruments.
December 31, 2022Level 1Level 2Level 3Total
Cash equivalents(1)
$— $30,336 $— $30,336 
Investments accounted for at fair value19,263 66 — 19,329 
Marketable equity securities1,033 34 — 1,067 
Marketable debt securities— 11,125 — 11,125 
$20,296 $41,561 $— $61,857 
(1) Cash equivalents are comprised of United States Treasury Bills and Government Agency Bonds, purchased within three months of their maturity date.
December 31, 2021Level 1Level 2Level 3Total
Investments accounted for at fair value$37,407 $1,131 $— $38,538 
Marketable equity securities494 — — 494 
$37,901 $1,131 $— $39,032 

There were no transfers into or out of Level 3 during the year ended December 31, 2022.