6. Investments

The Company’s investments included the following:

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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 Company intended to hold its investment in HERBL until HERBL executed its next equity financing. The Company had an arrangement with HERBL that, upon such equity financing, if the fair value of HERBL’s class B common shares was less than the initial cost, HERBL would issue additional shares to make up the difference. However, due to HERBL entering into receivership in June 2023, the Company determined that HERBL was not likely to issue additional shares to bring the Company’s investment value up to its initial cost. Therefore, during the year ended December 31, 2023, the Company recorded a loss of $6,400 on its investment in HERBL. The loss was included in unrealized loss on investment on the consolidated statement of operations and comprehensive loss. The balance was zero as of both December 31, 2024 and 2023.

During the years ended December 31, 2024, and 2023, the Company recorded unrealized losses on investment of $1 from its investment in Akerna. These losses are included in unrealized loss on investment in the consolidated statements of operations and comprehensive loss.