6. Investments

The Company’s investments included the following:

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On June 11, 2021, in connection with the sale of the Company’s member interests in Yaris Acquisition LLC d/b/a Blackbird (“Blackbird”), the Company settled a pre-existing senior secured promissory note due to the Company (the “Blackbird Note”) in exchange for 36,937 class B common shares of HERBL, Inc. (“HERBL”), and $1,500 cash. The Company recorded the investment in HERBL in accordance with a measurement alternative due to the lack of readily determinable fair values. The measurement alternative allows the Company to record the investments at cost, less impairment, if any, and subsequently adjust for observable price changes of identical or similar investments of the same issuer. The initial cost applied was $6,400 with no adjustments through December 31, 2022.

The Company intended to hold the HERBL investment until HERBL executed its next equity financing. However, during June 2023, the Company determined that it was not probable that HERBL would issue additional shares to bring the Company’s investment up to its initial cost as HERBL entered into receivership in June 2023. Therefore, during 2023, the Company recorded an impairment loss of $6,400 on its investment in HERBL to adjust the balance to zero. This loss is included in unrealized loss on investment in the consolidated statements of operations and comprehensive loss.

The Company originally held 58,293 shares of Akerna, listed on the Nasdaq Capital Market under the symbol “KERN.” On November 8, 2022, Akerna effected a 20-for-1 reverse stock split which resulted in the Company’s shares being reduced to 2,915. During the years ended December 31, 2023 and 2022, the Company recorded unrealized losses on investment of $1 and $100, respectively, which are included in unrealized loss on investment in the consolidated statements of operations and comprehensive loss.

In November 2018, the Company acquired class A membership units of Big Toe in exchange for $1,000 cash. The fair value of the Big Toe investment was not readily determinable, and the Company elected to apply the measurement alternative. The initial cost applied was $1,000. During 2022 the Company recognized an impairment loss of $196 which brought the balance to zero. The impairment loss was included in unrealized loss on investment on the consolidated statements of operations and comprehensive loss.