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Investments

6 Months Ended

Jun. 30, 2025

6. Investments

The following is a summary of the Company’s investments:

	June 30, 2025				December 31, 2024
	Carrying Value		Cost		Carrying Value		Cost

Fnality International Limited—Series B-1 Preference Shares	$	8,993	$	8,091	$	8,235	$	8,091
Quorus Inc.—Series Seed-1 Preferred Stock		4,000		4,000		—		—
Other investments		850		674		687		674
Total	$	13,843	$	12,765	$	8,922	$	8,765

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. During the three months ended June 30, 2024, the Company recognized a loss of $1,318 on its investment in Fnality, which is recorded in other gains and losses, net on the Consolidated Statements of Operations. 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
Expected volatility		60%
Time to exit (in years)		4.35
Probability that Series B-2 Preference Shares convert into Series B-1 Preference Shares		N/A

Net unrealized gains/(losses) recognized on this investment were $511 and $758, respectively, during the three and six months ended June 30, 2025 and ($78) and ($1,396), respectively, during the comparable periods in 2024, inclusive of changes in the British pound to U.S. dollar exchange rate. These results are recorded in other gains and losses, net on the Consolidated Statements of Operations.

There was no impairment recognized on this investment during the three and six months ended June 30, 2025 based upon a qualitative assessment.

Quorus Inc.

In June 2025, the Company made a $4,000 strategic investment in Quorus Inc. (“Quorus”), a company focused on empowering asset managers and financial advisors with innovative solutions for custom portfolio management. In consideration of its investment, the Company received 3,798,562 shares of Series Seed-1 Preferred Stock representing approximately 23.8% ownership of Quorus (or 20.4% on a fully diluted basis). The shares of Series Seed-1 Preferred Stock are convertible into common stock at the option of the Company and contain various rights and protections, including non-cumulative dividend rights that participate on an as-converted, pari passu basis with the common stock, only payable if and when declared by the board of directors of Quorus, and a 1.0x non-participating liquidation preference that is senior to all other holders of capital stock of Quorus.

Other Investments

On October 2, 2024, the Company purchased an investment of $674. During the three and six months ended June 30, 2025, the Company recognized an unrealized gain of $95 and $163, respectively, recorded in other gains and losses, net in the Consolidated Statements of Operations.