Quarterly report pursuant to Section 13 or 15(d)

Supplemental Financial Statement Information (Tables)

v3.23.1
Supplemental Financial Statement Information (Tables)
 3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of other income (expense) Components of other income (expense), net, are summarized as follows (in thousands):
Three Months Ended
March 31, 2023 March 31, 2022
Interest Expense (a) $ (1,085) $ (55)
Gain on Warrant Revaluation (b) 139  41 
Gain (Loss) on Foreign Exchange (c) 320  (192)
Loss on Marketable Securities Investments (d) (1,537) (79)
Gain (Loss) on Revaluation of Equity Investment in YFE (e) (895) 5,395 
Interest Income (f) 310  248 
Finance Lease Interest Expense (g) (50) – 
Other 1  – 
Other Income (Expense) $ (1,712) $ 5,413 
(a)
Interest expense during the three months ended March 31, 2023 primarily consisted of $0.7 million of interest incurred on the margin loan collateralized by the marketable security investments and $0.4 million of interest incurred on production facilities loans and bank indebtedness assumed as part of the Wow Acquisition.
(b)
The gain on warrant revaluation is related to the change in fair value of outstanding warrants that were determined to be derivative liabilities attached to previously issued and converted convertible notes.
(c)
The gain on foreign currency exchange during the three months ended March 31, 2023 primarily related to the EURO weakening against the USD compared to the previous reporting period end date of December 31, 2022. The remeasurement of the investment in YFE’s equity securities resulted in a foreign exchange gain of $0.3 million.
(d) The net realized loss on marketable securities 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.
(e)
The fair value revaluation of the investment in YFE accounted for using the fair value option as of March 31, 2023, resulted in a $0.9 million loss, excluding the impact of foreign currency recorded separately as a Gain on Foreign Exchange. The loss is a result of the decrease in YFE’s stock price as of March 31, 2023, as compared to December 31, 2022.
(f)
Interest Income during the three months ended March 31, 2023 primarily consisted of cash interest received of $0.4 million from the investments in marketable securities, net of premium amortization expense of $0.2 million. The remaining increase is due to interest accrued on the Notes Receivable from Related Parties.
(g) The finance lease interest expense represents the interest portion of the finance lease obligations assumed as part of the Wow Acquisition for equipment purchased under an equipment lease line. Prior to the acquisition of Wow, the Company did not have any finance leases.