XML 32 R13.htm IDEA: XBRL DOCUMENT v3.22.1
Short-term Investments
 12 Months Ended
Dec. 31, 2021
Shortterm Investment Investment In Dat Chat Inc [Abstract]  
Short-term investments

Note 6. Short-term investments

 

The following table presents the Company’s short-term investments at December 31, 2021 and 2020 ($ in thousands):

 

   As of December 31, 
   2021   2020 
Investment in Hoth Therapeutics, Inc.  $770   $
            -
 
Investment in DatChat, Inc.   1,084    
-
 
Investment in Vicinity Motor Corp.   418    
-
 
Total  $2,273   $
-
 

 

Investment in Hoth Therapeutics, Inc.

 

The following summarizes the Company investment in Hoth as of December 31, 2021 and 2020:

 

Security Name  Shares Owned as of
December 31,
2021		   Fair value per Share
as of December 31,
2021		   Fair value as of
December 31,
2021 (in thousands)		 
HOTH   1,166,415   $0.66   $770 

 

Security Name  Shares Owned as of
December 31,
2020		   Fair value per Share
as of December 31,
2020		   Fair value as of
December 31,
2020 (in thousands)		 
HOTH   1,166,415   $2.37   $2,764 

 

The investment in HOTH as of December 31, 2020 is recorded in long term investments. See Note 7. 

 

Investment in DatChat, Inc.

 

DatChat, Inc. (“DatChat”) is a communications software company that gives users the ability to communicate with privacy and protection.

 

On August 17, 2021, DatChat closed its initial public offering (the “IPO”) at an initial offering price to the public of $4.15 per share under the ticker DATS. The Company records this investment at fair value and records any change in fair value in the statements of operations (see Note 9).

 

On September 22, 2021, the Company entered into a certain Stock Transfer Agreement, by and between the Company and a purchaser, and sold 167,084 shares of DatChat common stock for net proceeds of approximately $0.9 million.

 

The following summarizes the Company investment in DatChat as of December 31, 2021:

 

Security Name  Shares Owned as of
December 31,
2021		   Fair value per Share
as of December 31,
2021		   Fair value as of
December 31,
2021 (in thousands)		 
DATS   357,916   $3.03   $1,084 

 

Investment in Vicinity Motor Corp.

 

On October 25, 2021, the Company entered into a warrant agreement with Vicinity Motor Corp. (“Vicinity”) that entitles the Company to purchase up to 246,399 shares of Vicinity common stock at $5.10 per share. The warrant expires on October 25, 2024. The fair value was determined using a Black-Scholes simulation. The Company recorded the fair value of the Vicinity warrant of approximately $0.4 million in the consolidated balance sheet as of December 31, 2021, reflecting the benefit received as part of its purchase of Vicinity common shares through its brokerage account. The initial investment in Vicinity was measured at approximately $0.6 million. Gains or losses associated with changes in the fair value of investments in Vicinity warrants are recognized as Change in fair value of investment on consolidated statements of operations (see Note 9). During the year ended December 31, 2021, the Company recorded approximately $0.4 million of change in fair value of investment for this investment.

 

The following table provides quantitative information regarding Level 3 fair value measurements inputs at their measurement dates:

 

   As of Octorber 25,
2021		   As of December 31,
2021		 
Option term (in years)           3.0            2.8 
Volatility   94.10%   95.52%
Risk-free interest rate   0.76%   0.97%
Expected dividends   0.00%   0.00%
Stock price  $4.11   $3.50