| Schedule of other income expense, net |
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Schedule of other income expense, net |
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|
|
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| |
|
Three Months Ended March 31, |
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|
2025 |
|
2024 |
| Interest Expense (a) |
|
$ |
(128 |
) |
|
$ |
(203 |
) |
| |
|
|
|
|
|
|
|
|
| Gain on Revaluation of Warrants (b) |
|
$ |
446 |
|
|
$ |
37 |
|
| Loss on Revaluation of Equity Investment in YFE (c) |
|
|
(3,640 |
) |
|
|
– |
|
| Realized Gain (Loss) on Marketable Securities Investments (d) |
|
|
4 |
|
|
|
(141 |
) |
| Gain (Loss) on Foreign Exchange (e) |
|
|
667 |
|
|
|
(650 |
) |
| Loss on Debt Settlement (f) |
|
|
(944 |
) |
|
|
– |
|
| Interest Income (g) |
|
|
54 |
|
|
|
53 |
|
| Finance Lease Interest Expense (h) |
|
|
(4 |
) |
|
|
(30 |
) |
| Other (i) |
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|
33 |
|
|
|
164 |
|
| Other Expense, net |
|
$ |
(3,384 |
) |
|
$ |
(567 |
) |
| |
(a) |
Interest Expense during the three months ended March 31, 2025 primarily consisted of $0.1 million of interest incurred on production facilities and bank indebtedness. Interest Expense during the three months ended March 31, 2024 primarily consisted of $0.2 million of interest incurred on production facilities and bank indebtedness. |
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(b) |
The Gain on Revaluation of Warrants during the three months ended March 31, 2025 is related to the changes in fair value of the outstanding 7,894,736 Series A and 7,894,736 Series B warrants classified as a liability due to a decrease of expiration period. The Gain on Revaluation of Warrants recorded during the three months ended March 31, 2024 is related to the remeasurement of 89,286 outstanding liability warrants which expired in March 2025. |
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(c) |
As accounted for using the fair value option, the Loss on Revaluation of Equity Investment in YFE of $3.6 million recorded in the three months ended March 31, 2025, is a result of the decreases in YFE’s stock price as of the current reporting period when compared to the prior reporting period. This excludes the impact of foreign currency recorded separately. |
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(d) |
The Realized Gain on Marketable Securities Investments of $4,454 recorded during the three months ended March 31, 2025 is attributable to the sale of U.S. Treasury securities. The Realized Loss on Marketable Securities Investments of $0.1 million recorded during the three months ended March 31, 2024, reflects the loss that was not recovered from the investments due to selling securities and issuers' prepayments of principals on certain mortgage-backed securities. |
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(e) |
The Gain on Foreign Exchange during the three months ended March 31, 2025 primarily related to the revaluation of the YFE investment, resulting in a gain of $0.7 million due to the depreciation of U.S. dollar as compared to three months ended March 31, 2024 in which a loss of $0.6 million was recognized. |
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(f) |
In April 2025, the Company entered into a settlement agreement with YFE related to the Shareholder Loan Agreement. As the settlement was considered probable and the loss reasonably estimable as of March 31, 2025, the Company recorded a loss of approximately $1 million during the three months ended March 31, 2025. |
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(g) |
Interest Income during the three months ended March 31, 2025 and 2024 primarily consisted of income from investments in marketable securities, net of premium amortization expense, as well as other transactions, including interest income related to Employee Retention Tax Credit (“ERTC”) receivable and interest income related to the Shareholder Loan. Each of these sources was individually immaterial. |
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(h) |
The Finance Lease Interest Expense represents the interest portion of the finance lease obligations for equipment purchased under an equipment lease line. |
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(i) |
Other Income is primarily related to late fees from select clients on a payment plan. |
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