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Marketable Securities | 9 Months Ended
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Sep. 30, 2022
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 realized and unrealized gains or losses on investment securities are reported in the consolidated statements of operations as investment income or (loss). Investment loss was $2,121,000 and $18,867,000 for the three months ended September 30, 2022 and 2021, respectively. Investment loss was $4,449,000 and $18,665,000 for the nine months ended September 30, 2022 and 2021, respectively. During the nine months ended September 30, 2022, the Company recorded realized gains on marketable securities of $112,000 related to a realized gain of $856,000 on the sale of 250,000 IRNT put options, offset by a realized loss of $744,000 for the delivery of 50,000 shares of IRNT common stock against the related derivative position. There were no realized gains or losses for the prior year quarter or year-to-date period. Details of marketable securities held at September 30, 2022 and December 31, 2021 are as follows (in thousands):
|  |  |  |  |  |  |  |  |  | Cumulative |
|  |  |  |  |  |  |  |  |  | Unrealized |
|  | Fair Value |  |  | Basis |  |  | (Loss) Gain |
IronNet Securities: |  | September 30, 2022 |
1,288,620 shares of common stock |  | $ | 888 |  |  | $ | 27,636 |  |  | $ | (26,748 | )
Put options |  |  | 26 |  |  |  | 13 |  |  |  | 13 |
|  |  | 914 |  |  |  | 27,649 |  |  |  | (26,735 | )
Equity funds and other securities |  |  | 16,156 |  |  |  | 16,808 |  |  |  | (652 | )
|  | $ | 17,070 |  |  | $ | 44,457 |  |  | $ | (27,387 | )
IronNet Securities: |  | December 31, 2021 |
1,338,620 shares of common stock |  | $ | 5,106 |  |  | $ | 28,696 |  |  | $ | (23,590 | )
Put options |  |  | 1,245 |  |  |  | 489 |  |  |  | 756 |
|  |  | 6,351 |  |  |  | 29,185 |  |  |  | (22,834 | )
Equity funds and other securities |  |  | 9,816 |  |  |  | 9,808 |  |  |  | 8 |
|  | $ | 16,167 |  |  | $ | 38,993 |  |  | $ | (22,826 | )
The shares of IRNT common stock were 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. At December 31, 2021, the Company held 1,250,000 shares of IRNT common stock that were restricted from sale until early 2022. The fair value of these shares of restricted common stock was determined by applying a discount for lack of marketability to the publicly quoted market price of IRNT common stock at December 31, 2021. During the first quarter of 2022, the sale restrictions were released. The fair value of our IRNT securities at September 30, 2022 was determined based on their publicly quoted market price. The Company executed derivatives transactions as part of its plan to minimize the economic risk of IRNT share price volatility to its IRNT holdings. The Company held put options, covering shares of IRNT common stock with a May 2022 expiration date, for 300,000 shares of IRNT common stock at December 31, 2021. During the first quarter of 2022, the Company delivered 50,000 shares against its IRNT put options. On May 5, 2022, the Company sold put options held at March 31, 2022 covering 250,000 shares of IRNT common stock for $1,263,000. At September 30, 2022, the Company held put options, covering shares of IRNT common stock with a fourth quarter 2022 expiration date, for 100,500 IRNT shares.

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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 https://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 https://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 https://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 https://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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