| Supplemental Financial Statement Information |
Note 17: Supplemental Financial Statement Information
Other Income (Expense), net
Components of Other Income (Expense), net, are
summarized as follows (in thousands):
| Schedule of other income expense, net |
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31, |
|
| |
|
2024 |
|
|
2023 |
|
| Interest Expense (a) |
|
$ |
(779 |
) |
|
$ |
(3,126 |
) |
| |
|
|
|
|
|
|
|
|
| Warrant Expense (b) |
|
|
– |
|
|
|
(12,664 |
) |
| Gain on Revaluation of Warrants (c) |
|
|
63 |
|
|
|
10,373 |
|
| Gain (Loss) on Revaluation of Equity Investment in YFE (d) |
|
|
(1,627 |
) |
|
|
2,314 |
|
| Loss on transaction (e) |
|
|
(985 |
) |
|
|
– |
|
| Realized Loss on Marketable Securities Investments (f) |
|
|
(611 |
) |
|
|
(4,496 |
) |
| Gain (Loss) on Foreign Exchange (g) |
|
|
(2,138 |
) |
|
|
641 |
|
| Interest Income (h) |
|
|
168 |
|
|
|
622 |
|
| Loss on Early Lease Termination (i) |
|
|
– |
|
|
|
(258 |
) |
| Finance Lease Interest Expense (j) |
|
|
(87 |
) |
|
|
(189 |
) |
| Other (k) |
|
|
2,008 |
|
|
|
978 |
|
| Other Income (Expense), net |
|
$ |
(3,209 |
) |
|
$ |
(2,679 |
) |
| |
(a) |
Interest Expense during the year ended
December 31, 2024 primarily consisted of $0.1 million of interest incurred on the margin loan and $0.7 million of interest incurred
on production facilities and bank indebtedness. Interest Expense during the year ended December 31, 2023 primarily consisted
of $1.5 million of interest incurred on the margin loan and $1.5 million of interest incurred on production facilities and bank indebtedness. |
| |
(b) |
During the year ended December 31, 2023
we recorded a warrants expense of $12.7 million related to the fair value of Exchange Warrants that were issued during the
year ended December 31, 2023 to certain existing warrant holders in exchange for previously issued outstanding warrants. |
| |
(c) |
The Gain on Revaluation of Warrants recorded
during the year ended December 31, 2024 is
related to the remeasurement of 89,286 outstanding
liability warrants expiring in March 2025 The Gain on Revaluation of Warrants during the year
ended December 31, 2023 is primarily related to the changes in fair value of the Exchange Warrants of $10.4
million recorded prior to the warrants being reclassified to stockholder’s equity. The decrease in fair value was due to
decreases in market price. |
| |
(d) |
As accounted for using the fair value option, the
Loss on Revaluation of Equity Investment in YFE of $1.6 million recorded in the year ended
December 31, 2024, 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. |
| |
(e) |
The Company allocated the total December 2024
offering transaction proceeds among the instruments issued, recognizing the warrants as a liability at their full fair value. As a
result of this allocation, the Company recorded a non-cash loss of $1.0
million |
| |
(f) |
The Realized Loss on Marketable Securities Investments
of $0.6 million recorded in the year ended December 31, 2024, reflects the loss
that will not be recovered from the investments due to selling securities and issuers’ prepayments of principals on certain
mortgage-backed securities. |
| |
(g) |
The Loss on Foreign Exchange during the year ended
December 31, 2024 primarily related to the revaluation of the YFE investment, resulting in a loss of $2.2 million due to the
euro strengthening against the U.S. dollar as compared to year ended December 31, 2023 in which a gain of $0.5 million was recognized.
|
| |
(h) |
Interest Income during the year ended December 31,
2024 primarily consisted of interest income of $0.1 million, net of premium amortization expense, recorded for the investments in
marketable securities. Interest Income during the year ended December 31, 2023 primarily consisted of interest income of $0.4 million,
net of premium amortization expense, recorded for the investments in marketable securities. |
| |
(i) |
The Loss on Early Lease Termination is due to early
termination of the Lyndhurst, NJ office lease, effective August 1, 2023. The loss includes fees of $0.2 million and the write-down
of assets and liabilities resulting in an additional $0.1 million loss. |
| |
(j) |
The Finance Lease Interest Expense represents the
interest portion of the finance lease obligations for equipment purchased under an equipment lease line. |
| |
(k) |
During the year ended December 31, 2024, we recorded
$1.2 million in other income related to Employee Retention Tax Credit (“ERTC”) Receivable, $0.6 million late fees
contract interest income and $0.1 million domain sale income. During the year ended December 31, 2023, we wrote-off a liability in
the amount of $0.9 million that had legally expired during the fourth quarter of 2023 under the statute of limitations on debt collection,
resulting in an increase in other income. |
|