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Investments | 9 Months Ended
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Sep. 30, 2021
Schedule of Investments [Abstract] |
Investments | 7. Investments The following table sets forth the Company’s investments:
|  | September 30, 2021 |  |  | December 31, 2020 |
|  | Carrying Value |  |  | Cost |  |  | Carrying Value |  |  | Cost |
Securrency, Inc. – Series A convertible preferred stock |  | $ | 8,488 |  |  | $ | 8,112 |  |  | $ | 8,112 |  |  | $ | 8,112 |
Securrency, Inc. – Series B convertible preferred stock |  |  | 5,500 |  |  |  | 5,500 |  |  |  | — |  |  |  | — |
Subtotal – Securrency, Inc. |  | $ | 13,988 |  |  | $ | 13,612 |  |  | $ | 8,112 |  |  | $ | 8,112 |
Onramp Invest, LLC – Simple Agreement for Future Equity |  |  | 250 |  |  |  | 250 |  |  |  | — |  |  |  | — |
|  | $ | 14,238 |  |  | $ | 13,862 |  |  | $ | 8,112 |  |  | $ | 8,112 |
Securrency, Inc. – Preferred Stock The Company owns approximately 22% (or 18% on a fully-diluted basis) of the capital stock of Securrency, Inc. (“Securrency”), a leading developer of institutional-grade blockchain-based financial and regulatory technology, issued as a result of strategic investments totaling $13,612. In consideration of such investments, the Company received 5,178,488 shares of Series A convertible preferred stock (“Series A Shares”) and 2,004,665 shares of Series B convertible preferred stock (“Series B Shares”). The Series B Shares contain a liquidation preference that is pari passu with shares of Series B-1 convertible preferred stock (which are substantially the same as the Series B Shares except that they have limited voting rights) and senior to that of the holders of the Series A Shares, which are senior to the holders of common stock. Otherwise, the Series A Shares and Series B Shares have substantially the same terms, are convertible into common stock at the option of the Company and contain various rights and protections including a non-cumulative 6.0% dividend, payable if and when declared by the board of directors of Securrency. In addition, the Series A Shares and Series B Shares (together with the Series B-1 convertible preferred stock) are separately redeemable, with respect to all of the shares outstanding of the applicable series of preferred stock (subject to certain regulatory restrictions of certain investors), for the original issue price thereof, plus all declared and unpaid dividends, upon approval by holders of at least 60% of the Series A Shares (at any time on or after December 31, 2029) and 90% of the Series B Shares (at any time on or after March 31, 2031). The investment is accounted for under the measurement alternative prescribed in ASU 2016-01, as it does not have a readily determinable fair value and is not considered to be in-substance common stock. The investment is assessed for impairment and similar observable transactions on a quarterly basis. There was no impairment recognized during the three months ended September 30, 2021 based upon a qualitative assessment. During the nine months ended September 30, 2021, the Company recognized a gain of $376 on its Series A Shares, which was re-measured to fair value upon the issuance of Securrency’s Series B Shares. Fair value was determined using the backsolve method, a valuation approach that determines the value of shares for companies with complex capital structures based upon the price paid for shares recently issued. Fair value is allocated across the capital structure using the Black-Scholes option pricing model. The table below presents the inputs used in backsolve valuation approach (classified as Level 3 in the fair value hierarchy):
|  | Inputs |
|  | June 9, 2021 |  |  | March 8, 2021 |
Expected volatility |  |  | 50 | % |  |  | 55 | %
Time to exit (in years) |  |  | 4.75 |  |  |  | 5.00 |
There was no impairment recognized during the three and nine months ended September 30, 2020 based upon a qualitative assessment. Onramp Invest, LLC In June 2021, the Company invested $250 in Onramp Invest, LLC (“Onramp”), a technology company that provides access to cryptoassets for registered investment advisers. In consideration for its investment, the Company holds a Simple Agreement for Future Equity (“SAFE”), which provides the Company with the right to be issued certain shares of Onramp’s preferred stock in connection with Onramp’s future equity financing for preferred stock, at a 20% discount to the price per share issued in connection with such equity financing, subject to a pre-determined valuation cap. The preferred stock is issuable upon the occurrence of such preferred equity financing, which would occur after Onramp’s conversion to a corporation. The investment is accounted for under the measurement alternative prescribed in ASU 2016-01, as it does not have a readily determinable fair value and is not considered to be in-substance common stock. The investment is assessed for impairment and similar observable transactions on a quarterly basis. There was no impairment recognized during the three and nine months ended September 30, 2021 based upon a qualitative assessment.

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