MARKETABLE SECURITIES

9 Months Ended

Sep. 30, 2023

Cash and Cash Equivalents [Abstract]

MARKETABLE SECURITIES

The Company elected the fair value option for its marketable debt securities and convertible note and records these instruments on the Condensed Consolidated Balance Sheet at their fair value including accrued interest income. Changes in fair value and interest income are recorded in Other income (loss) in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The fair value option was elected for these marketable debt securities, as the Company may sell them prior to their stated maturities after consideration of the Company’s risk versus reward objectives, as well as its liquidity requirements. The stated contractual maturity dates of marketable debt securities held as of September 30, 2023 and December 31, 2022 are due in one to two years. The secured convertible note reflected above (the “Convertible Note”) was received as partial consideration for the Alta Mesa Transaction (defined in Note 5 – Property, Plant and Equipment and Mineral Properties). The Company elected the fair value option for the Convertible Note, as it has the option of converting the principal due into fully paid and non-assessable common shares of enCore Energy Corp. (“enCore”). Marketable equity securities are measured at fair value as of each reporting date, and realized and unrealized gains (losses) and interest income are recorded in Other income (loss) in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

The following table summarizes our marketable securities by significant investment categories as of September 30, 2023:


	Cost Basis		Gross Unrealized Losses		Gross Unrealized Gains		Fair Value
Marketable debt securities(1)	$	68,981	$	—	$	437	$	69,418
Convertible note(2)	39,638		—		6,972		46,610
Marketable equity securities	2,876		(1,671)		—		1,205
Total marketable securities	$	111,495	$	(1,671)	$	7,409	$	117,233

(1) Marketable debt securities are comprised primarily of U.S. Treasury Bills and Government Agency Bonds and mutual funds.

(2) The Convertible Note was received as partial consideration in the Alta Mesa Transaction (defined in Note 5 – Property, Plant and Equipment and Mineral Properties) and is valued using a binomial lattice model using Level 3 inputs. As of September 30, 2023, the enCore share price was above the Conversion Option (defined below) resulting in an unrealized gain. During the three and nine months ended September 30, 2023, enCore redeemed $20.00 million of the principal amount of the Convertible Note. See Note 5 – Property, Plant and Equipment and Mineral Properties and Note 13 – Fair Value Accounting for more information.

The following table summarizes our marketable securities by significant investment categories as of December 31, 2022:


	Cost Basis		Gross Unrealized Losses		Gross Unrealized Gains		Fair Value
Marketable debt securities(1)	$	11,435	$	(310)	$	—	$	11,125
Marketable equity securities	2,876		(1,809)		—		1,067
Total marketable securities	$	14,311	$	(2,119)	$	—	$	12,192

(1) Marketable debt securities are comprised primarily of U.S. government agency bonds.