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Investments

12 Months Ended

Dec. 31, 2024

7. Investments

The following table sets forth the Company’s investments:

	December 31, 2024				December 31, 2023
	Carrying Value		Cost		Carrying Value		Cost
Fnality International Limited—Series B-1 Preference Shares		8,235		8,091		9,684		8,091
Other investments		687		674		—		250
Total	$	8,922	$	8,765	$	9,684	$	8,341

Fnality International Limited

The Company owns approximately 5.4% (or 4.7% on a fully-diluted basis) of capital stock of Fnality International Limited (“Fnality”), a company incorporated in England and Wales and focused on creating a peer-to-peer digital wholesale settlement ecosystem comprised of a consortium of financial institutions, offering real time cross-border payments from a single pool of liquidity. The Company’s ownership interest is represented by 2,340,378 Series B-1 Preference Shares, resulting from the conversion of its investment of £6,000 ($8,091) in convertible notes upon Fnality’s qualified equity financing which occurred in October 2023. The Series B-1 Preference Shares carry a 1.0x liquidation preference, are convertible into ordinary shares at the option of the Company and contain various rights and protections.

This investment is accounted for under the measurement alternative prescribed in ASC 321, as it does not have a readily determinable fair value and is otherwise not subject to the equity method of accounting. The investment is assessed for impairment and similar observable transactions on a quarterly basis. This investment was re-measured to fair value upon the conversion of Fnality’s Series B-2 Preference Shares held by other investors into Series B-1 Preference Shares, which occurred in June 2024. 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 was allocated across the capital structure using the Black-Scholes option pricing model. The table below presents the inputs used in the backsolve valuation approach (classified as Level 3 in the fair value hierarchy):

	Inputs
	June 17, 2024		December 31, 2023
Expected volatility		60%		60%
Time to exit (in years)		4.35		5.00
Probability that Series B-2 Preference Shares convert into Series B-1 Preference Shares		N/A		75%

Net unrealized (losses)/gains recognized on this investment were ($1,449) and $1,534 during the years ended December 31, 2024 and 2023, respectively, inclusive of changes in the British pound to U.S. dollar exchange rate. These results are recorded in other gains/(losses), net on the Consolidated Statements of Operations.

There was no impairment recognized on this investment during the year ended December 31, 2024 based upon a qualitative assessment.

Securrency, Inc.

Exit from Investment

On December 7, 2023, the Company received proceeds of $28,818 relating to the exit from its investment in Securrency, Inc. (“Securrency”), a developer of institutional-grade blockchain-based financial and regulatory technology, in connection with the sale of Securrency to an unaffiliated third party. This resulted in a net impairment charge of $7,630 and additional losses of $1,777, recorded in other gains/(losses), net, recognized during the year ended December 31, 2023. During the year ended December 31, 2024, the Company received additional proceeds of $465.

Other Investments

On October 2, 2024, the Company purchased an investment of $674. During the year ended December 31, 2024, the Company recognized a gain of $13, recorded in other gains/(losses), net on the Consolidated Statements of Operations. During the year ended December 31, 2023, the Company recognized an impairment of $312 on its other investments.

Additionally, during the year ended December 31, 2024, the Company received proceeds of $100 from its former investment in AdvisorEngine Inc.