Quarterly report pursuant to Section 13 or 15(d)

Investment in Equity Interest

v3.23.3
Investment in Equity Interest
 9 Months Ended
Sep. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]  
Investment in Equity Interest Investment in Equity InterestAs of September 30, 2023, the Company owned 6,857,132 shares of YFE. At the time of the initial investment in 2021, it was determined that based on the Company’s 28.69% ownership in YFE, the Company had significant influence over the entity. Therefore, under the equity method of accounting, the Company elected to account for the investment at fair value under the fair value option. Under the fair value option, the investment is remeasured and recorded at fair value each reporting period, with the change recorded through earnings. As of September 30, 2023, the fair value of the investment was determined to be $17.1 million recorded within noncurrent assets on the Company’s condensed consolidated balance sheets. The fair value as of September 30, 2023 increased by net $0.9 million, as compared to December 31, 2022. The net increase is comprised of the net impact of an increase in YFE’s stock price, resulting in a gain in fair value of $1.1 million, and the effect of foreign currency remeasurement from EURO to USD, resulting in a loss of $0.2 million. The total change in fair value is recorded within Other Income (Expense), Net on the Company’s condensed consolidated statement of operations. As of September 30, 2023 and December 31, 2022, the Company’s ownership in YFE was 44.8%.