XML 37 R19.htm IDEA: XBRL DOCUMENT
v3.24.0.1

EQUITY SECURITIES | 12 Months Ended
--- | ---
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract] |
EQUITY SECURITIES | 10. EQUITY SECURITIES Equity securities consist of the following (in thousands):
| December 31,
| 2023 |  | 2022
Equity securities accounted for under the equity method under ASC 323 | $ | 114,827 |  |  | $ | 213,494 |
Equity securities accounted for under the equity method under the fair value option | 41,046 |  |  | 82,787 |
Equity securities under ASC 321 | — |  |  | 36 |
Total equity securities | $ | 155,873 |  |  | $ | 296,317 |
The following table includes our equity securities accounted for under the equity method (ASC 323) and related ownership interest as of December 31, 2023:
| Ownership interest
Medici Ventures, L.P. | 99%
tZERO Group, Inc. | 28%
SpeedRoute, LLC | 49%
The carrying amount of our equity method securities was $155.9 million at December 31, 2023, which is included in Equity securities on our consolidated balance sheets, of which $41.0 million is valued under the fair value option (tZERO and SpeedRoute). These investments are valued using Level 3 inputs, which represents 13.8% of assets measured at fair value. For our investments in Medici Ventures, L.P., 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, L.P. and the amount of underlying equity we have in the entity's net assets. The following table summarizes the net gain (loss) recognized on equity method securities recorded in Other income (expense), net in our consolidated statements of operations (in thousands):
| Years ended December 31,
| 2023 |  | 2022 |  | 2021
Net gain (loss) recognized on our proportionate share of the net assets of our equity method securities | $ | (98,663) |  |  | $ | (25,435) |  |  | $ | 9,953 |
Increase (decrease) in fair value of equity method securities held under fair value option | (41,741) |  |  | (38,488) |  |  | 2,632 |
Regulation S-X Rules 4-08(g) and 3-09 In accordance with SEC Rules 4-08(g) and 3-09 of Regulation S-X, we must determine which, if any, of our equity method securities is a "significant subsidiary". Regulation S-X mandates the use of three different tests to determine if any of our equity securities are significant subsidiaries: the investment test, the asset test, and the income test. The table below provides the summarized financial information required by Rule 4-08(g) for those equity method securities in aggregate that have met the significance criteria, presented on a quarterly lag (in thousands):
| December 31,
Balance Sheet | 2023 |  | 2022
Assets | $ | 98,544 |  |  | $ | 122,015 |
Liabilities | (17,166) |  |  | (25,055) |
Equity | $ | (81,378) |  |  | $ | (96,960) |
| Years ended December 31,
Results of Operations (1) | 2023 |  | 2022 |  | 2021
Revenues | $ | 26,404 |  |  | $ | 31,187 |  |  | $ | 20,800 |
Pre-tax loss | (19,895) |  |  | (37,619) |  |  | (24,528) |
Net loss | (20,169) |  |  | (37,477) |  |  | (24,590) |
___________________________________________ (1) The results of operations in the summarized financial information above excludes the financial information for the periods subsequent to the date an equity method investee ceased being accounted for under the equity method and only includes the financial information for the periods subsequent to the date an investee became an equity method investment and was accounted for under the equity method. In accordance with Rule 3-09 of Regulation S-X, separate audited financial statements of Medici Ventures, L.P. for the periods ended September 30, 2023, 2022 and 2021, their fiscal year-ends, are being included as Exhibit 99.3, Exhibit 99.2, and Exhibit 99.1, respectively, and as such are excluded from the table above. In addition, tZERO was not deemed significant for the year ended December 31, 2021 but was significant for the years ended December 31, 2023 and 2022. In accordance with Rule 3-09 of Regulation S-X, separate audited financial statements for tZERO for the year ended December 31, 2022, are included as Exhibit 99.4 and separate audited financial statements for the year ended December 31, 2023 will be filed subsequently as an amendment to this Form 10-K when available.

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