XML 24 R14.htm IDEA: XBRL DOCUMENT
v3.23.3

EQUITY SECURITIES | 9 Months Ended
--- | ---
Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract] |
EQUITY SECURITIES | 6. EQUITY SECURITIES Equity securities consist of the following (in thousands):
| September 30, 2023 |  | December 31, 2022
Equity securities accounted for under the equity method under ASC 323 | $ | 128,235 |  |  | $ | 213,494 |
Equity securities accounted for under the equity method under the fair value option | 41,076 |  |  | 82,787 |
Equity securities under ASC 321 | 15 |  |  | 36 |
Total equity securities | $ | 169,326 |  |  | $ | 296,317 |
Our equity securities accounted for under the equity method under ASC 323 include equity securities in which we can exercise significant influence, but not control, over these entities through holding more than a 20% voting interest in the entity. The following table includes our equity securities accounted for under the equity method and related ownership interest as of September 30, 2023:
| Ownership interest
Medici Ventures, L.P. | 99%
tZERO Group, Inc. | 28%
SpeedRoute, LLC | 49%
The carrying amount of our equity method securities was $169.3 million at September 30, 2023, which is included in Equity securities on our consolidated balance sheets, of which $41.1 million is valued under the fair value option (tZERO and SpeedRoute). For our investments in Medici Ventures, tZERO, and SpeedRoute there is no difference in the carrying amount of the assets and liabilities and our maximum exposure to loss, and there is no difference between the carrying amount of our investment in Medici Ventures and the amount of underlying equity we have in the entity's net assets. The following table summarizes the net loss recognized on equity method securities recorded in Other expense, net in our consolidated statements of operations (in thousands):
| Three months ended September 30, |  | Nine months ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Net loss recognized on our proportionate share of the net assets of our equity method securities | $ | (41,837) |  |  | $ | (17,231) |  |  | $ | (85,255) |  |  | $ | (20,979) |
Increase (decrease) in fair value of equity method securities held under fair value option | 2,691 |  |  | (29,413) |  |  | (41,711) |  |  | (28,248) |
Regulation S-X Rule 10-01(b)(1) In accordance with Rule 10-01(b)(1) of Regulation S-X, which applies to interim reports on Form 10-Q, the Company must determine if its equity method investees are considered "significant subsidiaries". Summarized income statement information of an equity method investee is required in an interim report if the significance criteria are met as defined under SEC guidance. The following is the unaudited summarized financial information for those equity method securities that met the significance criteria for the period ended September 30, 2023, presented on a quarterly lag, (in thousands):
|  |  | Nine months ended September 30,
|  |  |  |  | 2023 |  | 2022
Results of Operations |  |  |  |  |  |  |
Revenues |  |  |  |  | $ | 1,373 |  |  | $ | 2,070 |
Pre-tax loss |  |  |  |  | (15,681) |  |  | (23,151) |
Net loss |  |  |  |  | (15,882) |  |  | (22,913) |

X
- Definition The entire disclosure for investment. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//320/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Topic 321 -Publisher FASB -URI https://asc.fasb.org//321/tableOfContent Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Topic 325 -Publisher FASB -URI https://asc.fasb.org//325/tableOfContent + Details
Name: | us-gaap_InvestmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration