Annual report pursuant to Section 13 and 15(d)

Investment in Equity Interest

Investment in Equity Interest
12 Months Ended
Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]  
Investment in Equity Interest

Note 5: Investment in Equity Interest


On December 1, 2021, the Company completed a $6.8 million investment in Your Family Entertainment AG (“YFE”). In exchange for $3.4 million in cash and 2,281,269 shares of the Company’s common stock (valued at approximately $3.4 million), the Company received 3,000,500 shares of YFE’s common stock. As of December 31, 2021, the Company has a 29% economic ownership interest in YFE. The Company has elected to apply the fair value option for its investment in YFE (Level 1) as it is believed that investors value this investment based on the trading price of YFE. The Company recognizes changes in the fair value of its investment in YFE as unrealized gains (losses), net in the accompanying consolidated statements of operations with other income (loss), net.


The Company revalued the investment in YFE’s securities on December 31, 2021 and recorded a loss of $105,654 within other income (loss), net on the Company’s consolidated statement of operations.


Following the acquisition of YFE’s shares, the Company participated in a mandatory tender offer for the remaining publicly traded shares held by shareholders. In addition, the Company committed to providing YFE between EURO 4.0 million to EURO 7.0 million by way of additional equity or by providing shareholder loans that have terms comparable to those of the converted bonds.