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Investments | 3 Months Ended
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Mar. 31, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Investments | Investments HTM Debt Securities Held to maturity (“HTM”) debt securities are comprised of U.S. Treasury bills and notes, Yankee debt securities, and corporate debt securities. HTM debt securities are classified as short-term or long-term based upon the contractual maturity of the underlying investment.
| March 31, 2024
(in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Accrued Interest
Short-term |  |  |  |  |  |  |  |  |
US Treasury bills and notes | 10,661 |  |  | 0 |  | $ | (1) |  |  | $ | 10,660 |  |  | $ | 45 |
Corporate debt securities | 21,158 |  |  | 4 |  |  | (25) |  |  | 21,137 |  |  | 311 |
Yankee debt securities | 3,000 |  |  | — |  |  | — |  |  | 3,000 |  |  | 87 |
Total debt securities due within a year | $ | 34,819 |  |  | $ | 4 |  |  | $ | (26) |  |  | $ | 34,797 |  |  | $ | 443 |
Total HTM Debt Securities | 34,819 |  |  | 4 |  |  | (26) |  |  | 34,797 |  |  | 443 |
| December 31, 2023
(in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Accrued Interest
Short-term |  |  |  |  |  |  |  |  |
US Treasury bills and notes | 20,423 |  |  | 6 |  | $ | — |  |  | $ | 20,429 |  |  | $ | 14 |
Corporate debt securities | 21,736 |  |  | 14 |  |  | (33) |  |  | 21,717 |  |  | 209 |
Yankee debt securities | 3,000 |  |  | — |  |  | (8) |  |  | 2,992 |  |  | 43 |
Total debt securities due within a year | $ | 45,159 |  |  | $ | 20 |  |  | $ | (41) |  |  | $ | 45,138 |  |  | $ | 266 |
Total HTM Debt Securities | 45,159 |  |  | 20 |  |  | (41) |  |  | 45,138 |  |  | 266 |
The Company regularly reviews held-to-maturity securities for declines in fair values that are determined to be credit related. As of December 31, 2023 and March 31, 2024, the Company did not have an allowance for credit losses related to HTM securities. Equity investments The Company’s equity investments consisted of the following (in thousands):
|  | As of
|  | March 31, 2024 |  | December 31, 2023
Equity Method Investment in LanzaJet |  | $ | 6,354 |  |  | $ | 7,066 |
Equity Security Investment in SGLT |  | 14,990 |  |  | 14,990 |
Total Investment |  | $ | 21,344 |  |  | $ | 22,056 |
LanzaJet On May 13, 2020, the Company contributed $15,000 in intellectual property in exchange for a 37.5% interest (“Original Interest”) of LanzaJet, Inc. (“LanzaJet”) in connection with an investment agreement (“Investment Agreement”). The Company accounts for the transaction as a revenue transaction with a customer under ASC 606. The licensing and technical support services provided are recognized as a single combined performance obligation satisfied over the expected period of those services, beginning May 2020 through December 2025. During the three months ended March 31, 2024 and March 31, 2023, the Company recognized revenue from this arrangement of $580 and $553 respectively, net of intra-entity profit elimination and has associated deferred revenue of $4,704 and $5,375, as of March 31, 2024 and December 31, 2023, respectively. Intra-entity profits related to this arrangement are $92 and $118 for the three months ended March 31, 2024 and 2023, respectively. Intra-entity profits are amortized over a 15-year period through 2034. Between February 1, 2021 and April 4, 2021, LanzaJet closed two additional rounds of investment which reduced the Original Interest to approximately 23%. In connection with the LanzaJet Note Purchase Agreement as described in Note 13 - Related Party Transactions, LanzaJet issued warrants that are exercisable for $0.01 by the holder when the related funds are drawn by LanzaJet. The warrants held by LanzaTech and other lenders meet the accounting criteria for in-substance common stock at the time the related note commitment is drawn by LanzaJet and the warrants become exercisable. As of March 31, 2024, LanzaTech’s ownership was diluted to 22.89% because LanzaTech received proportionally fewer warrants than the other investors. The Company recorded a gain on dilution of $77 in the three months ended March 31, 2024. LanzaTech’s ownership is subject to further dilution to 22.38% if LanzaJet draws additional funds committed in the LanzaJet Note Purchase Agreement and the remaining warrants are exercisable by the holders. Under the LanzaJet Investment Agreement, certain other LanzaJet shareholders agreed to make an additional cash investment following the achievement of certain development milestones relating to the demonstration facility. If made, these additional investments would fund the development and operation of commercial facilities that would sublicense the relevant fuel production technology from LanzaJet. Upon the closing of each of the first three of these additional investments and no later than the sublicensing of the relevant facility, LanzaTech has a right to receive up to an aggregate of 45 million additional LanzaJet shares for no additional consideration. To date, these shares have not been issued. The carrying value of our equity method investment in LanzaJet as of March 31, 2024 and December 31, 2023 was approximately $3,400 less than our proportionate share of our equity method investees’ book values, for both periods. The basis differences are largely the result of a difference in the timing of recognition of variable consideration to which we may become entitled in exchange for our contribution of intellectual property to LanzaJet. The variable consideration we may receive will be in the form of additional ownership interests and the majority of the basis difference will be reversed in connection with recognition of that variable consideration. In connection with a sublicense agreement to LanzaJet under our license agreement with Battelle Memorial Institute (“Battelle”), LanzaTech remains responsible for any failure by LanzaJet to pay royalties due to Battelle. The fair value of LanzaTech’s obligation under this guarantee was immaterial as of March 31, 2024 and December 31, 2023. SGLT On September 28, 2011, the Company contributed RMB 25,800 (approx. $4,000) in intellectual property in exchange for 30% of the registered capital of Beijing Shougang LanzaTech Technology Co., LTD (“SGLT”). Since then, the Company’s interest in SGLT’s registered capital decreased to approximately 9.31% as a result of the investment by new investors. The Company accounts for its investment in equity securities of SGLT using the alternative measurement principals as permitted under ASC 321, Investments - Equity Securities, because SGLT's fair value is not readily determinable. For the three months ended March 31, 2024, there was no change in the recorded amount of the investment in SGLT. As of March 31, 2024 and December 31, 2023, there were no impairments of equity investments. During the three months ended March 31, 2024 and 2023, the Company received no dividends from equity investments. See Note 13 - Related Party Transactions, for information on revenues, accounts receivable, contract assets and purchases and open accounts payable with its equity investments.

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- 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
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