Strategic Investments

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Strategic Investments

Strategic Investments

As part of our strategy, we continuously evaluate opportunities for strategic investments that align with our mission. We account for these investments in non-public companies under the ASC Topic 321, Investments - Equity Securities, measurement alternative for equity securities without readily determinable fair values, as there are no quoted market prices for these investments. The investments are measured at cost and adjusted to fair value when there is an observable price change, and are assessed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable.

We hold investments in Pickle Robot Co. (“Pickle”) and Creapaper GmbH (“Creapaper”). Pickle is a robotics-solutions company which has developed robots for sorting, loading and unloading packaged goods. Creapaper uses a patented process to produce grass fiber, a raw material required for producing their grasspaper packaging products. As of December 31, 2023, we held investments in Pickle and Creapaper of $9.4 million and $4.9 million, respectively.

During the second quarter of 2024, we invested an additional $4.3 million in cash in exchange for preferred shares in Pickle. The additional cash investment was considered an observable price change that required remeasurement of the carrying value of our investment in Pickle. As a result, we recorded a $3.5 million unrealized loss on our investment in Pickle for the three and six months ended June 30, 2024 in other non-operating income, net in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). There were no adjustments recognized in the six months ended June 30, 2023. As of June 30, 2024, the carrying value of our investments in Pickle and Creapaper were $10.7 million and $4.9 million, respectively.