16. Variable Interest Entities

VIEs are entities with any of the following characteristics: (i) the entity does not have enough equity to finance its activities without additional financial support; (ii) the equity holders, as a group, lack the characteristics of a controlling financial interest; or (iii) the entity is structured with

non-substantive

voting rights.

Consolidation of a VIE is required for the party deemed to be the primary beneficiary, if any. The primary beneficiary is the party who has both (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. The Company is not the primary beneficiary of any entities in which it has a variable interest as it does not have the power to direct the activities that most significantly impact the entities’ economic performance. Such power is conveyed through the entities’ boards of directors and the Company does not have control over the boards.

The following table presents information about the Company’s variable interests in

non-consolidated

VIEs:


	December 31, 2022		December 31, 2021
Carrying Amount—Assets (Securrency):
Preferred stock—Series A Shares	$	8,488	$	8,488
Preferred stock—Series B Shares		5,500		5,500
Convertible note		14,500		—

Subtotal—Securrency	$	28,488	$	13,988
Carrying Amount—Assets (Fnality):
Convertible note		6,921		—
Carrying Amount—Assets (Other investments):		312		250

Total (Note 8)	$	35,721	$	14,238

Maximum exposure to loss	$	35,721	$	14,238