| Schedule of Long-Term Investments, Net |
Long-term investments, net consisted of the following:
| |
|
As of December 31, |
|
| |
|
Ownership interest |
|
|
2024 |
|
|
Ownership interest |
|
|
2023 |
|
| Marketable equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment C |
|
|
0.00 |
%* |
|
|
1 |
|
|
|
0.00 |
%* |
|
|
1 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-marketable equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment A |
|
|
8.37 |
% |
|
|
5,479 |
|
|
|
8.37 |
% |
|
|
5,827 |
|
| Investment B |
|
|
3.63 |
% |
|
|
255 |
|
|
|
3.63 |
% |
|
|
342 |
|
| Investment D |
|
|
4.49 |
% |
|
|
16,621 |
|
|
|
4.47 |
% |
|
|
16,880 |
|
| Investment E, related party |
|
|
4.00 |
% |
|
|
525 |
|
|
|
4.00 |
% |
|
|
523 |
|
| Investment F (a) |
|
|
— |
|
|
|
— |
|
|
|
4.00 |
% |
|
|
2,152 |
|
| Investment G (b) |
|
|
56.93 |
% |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Investment H (c) |
|
|
3.76 |
% |
|
|
2,574 |
|
|
|
— |
|
|
|
— |
|
| Net carrying value |
|
|
|
|
|
$ |
25,455 |
|
|
|
|
|
|
$ |
25,725 |
|
| (a) | On February 5, 2024, the Company entered into a purchase and sale agreement
with an independent third party to sell all of its equity interest in Investment F for a purchase price of approximately $2.15 million
and the transaction was completed on February 19, 2024. |
| (b) | In connection with the Merger Transaction, the Company held a 56.93%
equity interest in Bare Knuckle Fighting Championships, Inc. (“BKFC”) as of December 31, 2024. BKFC is a licensed combat sports
platform that stages live and streaming bareknuckle fighting events featuring established professionals in boxing, mixed martial arts,
kickboxing and Muay Thai. Notwithstanding the Company’s majority equity ownership, the Company determined that it did not have a
controlling financial interest and significant influence in BKFC, as it lacked the power to direct the activities that most significantly
impact BKFC’s economic performance. Based on an evaluation of BKFC’s governance structure, contractual arrangements, and actual
operating practices, strategic, operational, and financing decisions are all directed by BKFC’s founder, and BKFC operates independently
of the Company. Accordingly, the Company accounted for its investment in BKFC as a non-marketable equity security measured at cost less
impairment in accordance with ASC 321, Investments — Equity Securities. |
| | (c) |
In September 2024, the Company subscribed 285,353
Class C Units of Investment H, a Nevada limited liability private company, representing a 3.79% equity interest of Investment H as of
transfer date, for a non-cash consideration of approximately $18.5 million. The consideration was payable by the issuance of 3.56 million
shares of ordinary shares of AGBA at the current market value of 5.18 per share. Accordingly, the Company accounted for its investment
in Investment H as a non-marketable equity security measured at cost less impairment in accordance with ASC 321, Investments —
Equity Securities. (see Note 19(a)(vi))
Subsequently, the Company agreed to transfer all its
equity interest in Investment H to a consulting firm for partial settlement of consultancy services (see Note 26(vii)).
|
|
| Schedule of Movement of Non-Market Equity Securities |
The following table presents the movement of non-marketable
equity securities as of December 31, 2024 and 2023:
| | |
As of December 31, | |
| | |
2024 | | |
2023 | |
| Balance at beginning of year | |
$ | 25,725 | | |
$ | 34,590 | |
| Additions | |
| 18,457 | | |
| 289 | |
| Disposal | |
| (2,152 | ) | |
| — | |
| Adjustments: | |
| | | |
| | |
| Downward adjustments | |
| (15,971 | ) | |
| (10,093 | ) |
| Foreign exchange adjustment | |
| (604 | ) | |
| 939 | |
| Balance at end of year | |
$ | 25,455 | | |
$ | 25,725 | |
|
| Schedule of Cumulative Unrealized Gains and Losses |
Cumulative unrealized gains and losses, included
in the carrying value of the Company’s non-marketable equity securities:
| | |
As of December 31, | |
| | |
2024 | | |
2023 | |
| Downward adjustments (including impairment) | |
$ | (53,318 | ) | |
$ | (37,347 | ) |
| Upward adjustments | |
| 6,209 | | |
| 6,209 | |
| Total | |
$ | (47,109 | ) | |
$ | (31,138 | ) |
|
| Schedule of Net is Recorded as Other Expense |
Investment loss, net is recorded as other expense
in the Company’s consolidated statements of operations and comprehensive loss and consisted of the following:
| | |
For the years ended
December 31, | |
| | |
2024 | | |
2023 | |
| Marketable equity securities: | |
| | | |
| | |
| Realized gain from sale of Investment C | |
$ | — | | |
$ | 1,544 | |
| | |
| | | |
| | |
| Non-marketable equity securities: | |
| | | |
| | |
| Unrealized losses (including impairment) – Investment F | |
| — | | |
| (9,922 | ) |
| Unrealized losses (including impairment) – Investment B | |
| (88 | ) | |
| (171 | ) |
| Unrealized losses (including impairment) – Investment H | |
| (15,883 | ) | |
| — | |
| Dividend income | |
| — | | |
| 1,670 | |
| Investment loss, net | |
$ | (15,971 | ) | |
$ | (6,879 | ) |
|