XML 26 R15.htm IDEA: XBRL DOCUMENT v3.24.3
EQUITY SECURITIES
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
EQUITY SECURITIES
7. EQUITY SECURITIES

Equity securities consist of the following (in thousands):
September 30,
2024		December 31,
2023
Equity securities accounted for under the equity method under ASC 323$90,968 $114,827 
Equity securities accounted for under the equity method under the fair value option21,500 41,046 
Total equity securities$112,468 $155,873 

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 (ASC 323) and related ownership interest as of September 30, 2024:
Ownership
interest
Medici Ventures, L.P.99%
tZERO Group, Inc.28%
SpeedRoute, LLC49%

The carrying amount of our equity method securities was $112.5 million at September 30, 2024, which is included in Equity securities on our consolidated balance sheets, of which $21.5 million was valued under the fair value option (tZERO and SpeedRoute). For our investments in Medici Ventures, L.P., tZERO, and SpeedRoute there was no difference in the carrying amount of the assets and liabilities and our maximum exposure to loss, and there was no difference between the carrying amount of our investment in Medici Ventures, L.P., and the amount of underlying equity we have in the entity's net assets.
The following table summarizes the net loss recognized on equity method securities recorded in Other expense, net in our consolidated statements of operations (in thousands):
Three months ended
September 30,		Nine months ended
September 30,
2024202320242023
Net loss recognized on our proportionate share of the net assets of our equity method securities$(6,371)$(41,837)$(23,859)$(85,255)
Increase (decrease) in fair value of equity method securities held under fair value option(10,828)2,691 (19,546)(41,711)

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. For the period ended September 30, 2024, none of our equity method investees met the significance criteria. 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
Results of Operations
Revenues$1,373 
Pre-tax loss(15,681)
Net loss(15,882)