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Note 11 - Investments in Unconsolidated Entities (Tables)

12 Months Ended

Dec. 31, 2024

Disclosure of unconsolidated structured entities [abstract]

Summary of Investments in Unconsolidated Entities

The table below shows a summary of Opera’s investments in unconsolidated entities (in thousands except for percentages):


										Carrying amount as of December 31,
Investee		Ownership interest				Classification of investment		Basis of accounting for investment		2023				2024
OPay			9.4	%		Financial asset		Fair value through profit or loss		$	253,300			$	258,300
Verda Ventures			26.0	%		Associate		Equity method		$	—			$	1,248
nHorizon Innovation			29.1	%		Associate		Equity method		$	—			$	—

The table below provides a reconciliation of the carrying amount of Opera’s investment in OPay (in thousands):


		Year ended December 31,
		2023				2024
Carrying amount as of January 1		$	86,100			$	253,300
Shares acquired recognized at fair value			77,362				—
Fair value gain on investment			89,838				5,000
Carrying amount as of December 31		$	253,300			$	258,300

Summary of Equity Value, Period of Time until Potential Liquidity Events and Probabilities

The table below shows the estimates for equity values (in millions), period of time until potential liquidity events and probabilities of the respective outcomes, with the narrowed valuation ranges reflecting an underlying belief that such liquidity events are closer in time at year-end 2024 versus year-end 2023:


		Equity value (in millions)				Time horizon (in years)				Probability
Scenarios		2023		2024		2023		2024		2023		2024
Initial public offering		$2,900 – $8,000		$3,000 – $6,000		1 – 3		1 – 2		72%		80%
Sale transaction		$3,500 – $7,500		$3,000 – $5,500		1 – 3		1 – 2		8%		10%
Dissolution		$234		$236		3		3		10%		5%
Redemption		$1,000		$1,000		3		3		10%		5%

Summary of Individual Sensitivities of Key Unobservable Inputs to the Fair Value Measurement

The table below shows the individual sensitivities of key unobservable inputs to the fair value measurement (in thousands):


						As of December 31, 2023								As of December 31, 2024
Significant unobservable inputs		Change in assumption (1)				Decrease in assumption				Increase in assumption				Decrease in assumption				Increase in assumption
Weighted average equity value			10	%		$	(24,791	)		$	24,791			$	(25,495	)		$	25,495
Time to exit		1 year				$	47,872			$	(40,263	)		$	48,553			$	(40,855	)
Relative change in probability of sale (2)			100	%		$	(630	)		$	630			$	826			$	(826	)
Discount for lack of marketability		5 pp				$	14,072			$	(14,072	)		$	14,350			$	(14,350	)
Discount rate		2 pp				$	9,759			$	(9,202	)		$	6,965			$	(6,657	)
Achievement of financial target (3)		10 pp				$	(8,452	)		$	5,017			N/A				N/A

_______________

(1)

pp - percentage points.

(2)

Represents a relative change in the probabilities of sale scenarios, offset by an equal change in the probabilities of initial public offering scenarios.

(3)

Only applicable to the preferred shares acquired in 2023, as discussed above.

Verda Ventures

Verda Ventures operates a venture fund formed in the second half of 2024 with the purpose of making investments in companies operating in the stablecoin ecosystem around Opera’s MiniPay platform. Opera invested $1.25 million in the fund in the fourth quarter of 2024, and has a commitment to make a further seven equal quarterly investments, totaling $10 million.

The fund operated by Verda Ventures is classified as an associate and accounted for in accordance with the equity method as Opera has a member on the fund’s investment committee and thus has the ability to participate in financial and operating policy decisions. Opera’s share of the fund’s net loss, including management fee, was $2 thousand in 2024.