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Marketable Securities | 12 Months Ended
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Dec. 31, 2021
Investments Debt And Equity Securities [Abstract] |
Marketable Securities | D. Marketable Securities The Company accounts for equity securities under ASC 321. Such securities are reported at fair value on the consolidated balance sheets, and the related unrealized gains and losses are reported in the consolidated statements of cash flows as non-cash adjustments to income. Any unrealized appreciation or depreciation on investment securities is reported in the consolidated statements of operations as an unrealized gain or loss on marketable securities. During the years ended December 31, 2021 and 2020, realized (loss) gain on marketable securities was ($16,962,000) and $74,000, respectively. Unrealized (loss) gain on marketable securities was ($22,949,000) and $139,000, respectively, for the years ended December 31, 2021 and 2020, respectively. Details of marketable securities held at December 31, 2021 and 2020 are as follows (in thousands):
|  |  |  |  |  |  |  |  |  | Cumulative |
|  |  |  |  |  |  |  |  |  | Unrealized |
|  | Fair Value |  |  | Basis |  |  | (Loss) Gain |
IronNet: |  | December 31, 2021 |
1,250,000 common shares - restricted |  | $ | 4,734 |  |  | $ | 26,501 |  |  | $ | (21,767 | )
88,620 common shares - unrestricted |  |  | 372 |  |  |  | 2,195 |  |  |  | (1,823 | )
Put options |  |  | 1,245 |  |  |  | 489 |  |  |  | 756 |
|  |  | 6,351 |  |  |  | 29,185 |  |  |  | (22,834 | )
Equity fund and other securities |  |  | 9,816 |  |  |  | 9,808 |  |  |  | 8 |
|  | $ | 16,167 |  |  | $ | 38,993 |  |  | $ | (22,826 | )
|  | December 31, 2020 |
Equity fund and other securities |  |  | 5,791 |  |  |  | 5,668 |  |  |  | 123 |
|  | $ | 5,791 |  |  | $ | 5,668 |  |  | $ | 123 |
The IRNT common stock was received by the Company as a result of the previously discussed Sponsor distribution. The fair value of these shares determined at the date of distribution represents the basis of these securities. As a result of the IronNet Business Combination and LGL’s investment in the Sponsor, LGL was distributed 2,065,000 IRNT private warrants and 1,572,529 shares of common stock on September 14, 2021. Of these shares of common stock, 1,300,000 shares are restricted from sale for at least six months from the date of closing and subject to the applicable shareholder lock-up agreements. In an effort to continue its stakeholder responsibilities in the context of global corporate citizenship, the Company made a charitable gift on September 28, 2021 of 50,000 shares of IRNT common stock recognizing the fair value of $1,318,000 as an administrative expense at the date of donation. The fair value of the remaining 1,250,000 shares of IRNT restricted common stock outstanding was determined by applying a discount for lack of marketability to the publicly quoted market price of IRNT common stock. The 272,529 shares of PIPE-related common stock and 2,065,000 private warrants were subject to trading restrictions upon distribution until the registration statement became effective on September 30, 2021. A Monte Carlo simulation model was used to estimate the market price of IRNT private warrants. On October 1, 2021, the Company exercised its 2,065,000 IRNT private warrants on a cashless basis and received 1,271,406 shares of IRNT common stock upon such exercise. The basis of the private warrants was carried over to the IRNT common shares received upon exercise of such warrants. As of December 31, 2021, the Company sold 1,455,315 shares of IRNT common stock and closed certain related derivative positions resulting in approximately $18,548,000 of pre-tax proceeds. At December 31, 2021, the Company held 88,620 shares of unrestricted IRNT common stock and 1,250,000 shares of IRNT common stock that are restricted from sale for at least six months from the date of the IronNet Business Combination. The Company has executed derivatives transactions as part of its plan to minimize the economic risk of IRNT share price volatility to its IRNT holdings. At December 31, 2021, the Company reported an unrealized gain of $756,000 related to put options for 300,000 shares of IRNT common stock with a second quarter 2022 expiration date.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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