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FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended
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Jun. 30, 2023
Fair Value Disclosures [Abstract] |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 5. FAIR VALUE OF FINANCIAL INSTRUMENTS The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy:
Fair value, assets measured on recurring basis |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Fair Value Measurement at June 30, 2023 |
|  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Investment in common stock of Alzamend Neuro, Inc. (“Alzamend”) – a related party |  | $ | 5,836,000 |  |  | $ | 5,836,000 |  |  | $ | - |  |  | $ | - |
Investments in marketable equity securities |  |  | 653,000 |  |  |  | 653,000 |  |  |  | - |  |  |  | - |
Cash and marketable securities held in trust account |  |  | 2,143,000 |  |  |  | 2,143,000 |  |  |  | - |  |  |  | - |
Total assets measured at fair value |  | $ | 8,632,000 |  |  | $ | 8,632,000 |  |  | $ | - |  |  | $ | - |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Series E and G preferred stock liabilities |  | $ | 8,263,000 |  |  | $ | - |  |  | $ | - |  |  | $ | 8,263,000 |
Warrant and embedded conversion feature liabilities |  |  | 5,605,000 |  |  |  | - |  |  |  | - |  |  |  | 5,605,000 |
Convertible promissory notes |  |  | 15,275,000 |  |  |  | - |  |  |  | - |  |  |  | 15,275,000 |
Total liabilities measured at fair value |  | $ | 29,143,000 |  |  | $ | - |  |  | $ | - |  |  | $ | 29,143,000 |
|  | Fair Value Measurement at December 31, 2022 |
|  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment in common stock of Alzamend – a related party |  | $ | 6,449,000 |  |  | $ | 6,449,000 |  |  | $ | - |  |  | $ | - |
Investments in marketable equity securities |  |  | 6,590,000 |  |  |  | 6,590,000 |  |  |  | - |  |  |  | - |
Cash and marketable securities held in trust account |  |  | 118,193,000 |  |  |  | 118,193,000 |  |  |  | - |  |  |  | - |
Investments in other equity securities |  |  | 13,340,000 |  |  |  | - |  |  |  | - |  |  |  | 13,340,000 |
Total assets measured at fair value |  | $ | 144,572,000 |  |  | $ | 131,232,000 |  |  | $ | - |  |  | $ | 13,340,000 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Warrant and embedded conversion feature liabilities |  | $ | 2,967,000 |  |  | $ | - |  |  | $ | - |  |  | $ | 2,967,000 |
Convertible promissory notes |  |  | 12,776,000 |  |  |  | - |  |  |  | - |  |  |  | 12,776,000 |
Total liabilities measured at fair value |  | $ | 15,743,000 |  |  | $ | - |  |  | $ | - |  |  | $ | 15,743,000 |
The Company assesses the inputs used to measure fair value using the three-tier hierarchy based on the extent to which inputs used in measuring fair value are observable in the market. For investments where little or no public market exists, management’s determination of fair value is based on the best available information which may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration various factors including earnings history, financial condition, recent sales prices of the issuer’s securities and liquidity risks. The following table summarizes the changes in investments in other equity securities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for the six months ended June 30, 2023:
Schedule of investments |  |  |  |
|  | Investments in other equity securities |
Balance at January 1, 2023 |  | $ | 13,340,000 |
Conversion to Level 1 marketable securities |  |  | (13,340,000 | )
Balance at June 30, 2023 |  | $ | - |
Equity Investments for Which Measurement Alternative Has Been Selected As of June 30, 2023 and December 31, 2022, the Company held equity investments in other securities, which consisted of investments in preferred stock, valued at $25.9 million and $29.2 million, respectively, that were valued using a measurement alternative. These investments are included in other equity securities in the accompanying condensed consolidated balance sheets. Measurement Alternative Impairment The Company has made cumulative downward adjustments for impairments for equity securities that do not have readily determinable fair values as of June 30, 2023, totaling $11.6 million. Approximately $9.6 million of these adjustments have been reflected in other income (expense) and $2.0 million of these adjustments related to Fintech lending operations and have been recorded against revenue from lending and trading activities on the consolidated statement of operations and comprehensive loss.

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- Definition Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2C -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2C Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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