XML 25 R13.htm IDEA: XBRL DOCUMENT v3.20.2
Investments
9 Months Ended
Sep. 30, 2020
Investments Debt And Equity Securities [Abstract]  
Investments

6.

Investments

Other investments

Long-term investments are comprised of the following items:

 

 

September 30, 2020

 

 

December 31, 2019

 

Equity investments at fair value

 

$

2,207

 

 

$

4,183

 

Equity investments under measurement alternative

 

 

14,738

 

 

 

14,954

 

Debt securities classified under available-for-sale method

 

 

5,765

 

 

 

5,047

 

Total other investments

 

$

22,710

 

 

$

24,184

 

 

Unrealized gains and losses recognized in other expense (income) during the three and nine months ended September 30, 2020 on equity investments still held at September 30, 2020 are losses of $506 and $1,272 (2019 – loss of $274 and gain of $264). There were no impairments or adjustments to equity investments under the measurement alternative for the three and nine months ended September 30, 2020 and September 30, 2019.

 

The Company’s debt securities accounted for under the available-for-sale method consist of convertible debt instruments with contractual maturities in 2022. Total unrealized loss of $148 in accumulated other comprehensive income at September 30, 2020 (December 31, 2019 - $302) relates to the long-term available-for-sale debt securities. The Company’s allowance for credit losses on debt securities classified as available-for-sale is $0 at September 30, 2020 (December 31, 2019 – $0) and no related credit loss expenses were recorded during the three and nine months ended September 30, 2020 (2019 – $0 and $0).

 

Equity method investments

Equity method investments are comprised of the Company’s joint venture with Anheuser-Busch InBev (“AB InBev”) in Plain Vanilla Research Limited Partnership (“Fluent”) and the Company’s joint venture with Cannfections Group Inc. (“Cannfections”).  As of September 30, 2020, there are no changes to the status of the Company’s assessment of its joint ventures.

During the nine months ended September 30, 2020, the Company contributed $2,323 to Fluent (2019 - $10,090). The Company provides production support services to Fluent on a cost recovery basis. For the nine months ended September 30, 2020, total fees charged were $3,109 (2019 - $0). Total amounts included in accounts payable is $441 at September 30, 2020 (December 31, 2019 – accounts receivable of $388). At September 30, 2020, the maximum exposure to loss is limited to the Company’s equity investment in Fluent.

During the nine months ended September 30, 2020, the Company made no capital contributions to Cannfections (2019 - $3,600). At September 30, 2020, the maximum exposure to loss is limited to the Company’s equity investment in Cannfections.

The Company’s ownership interests in its equity method investments as of September 30, 2020 and December 31, 2019 and (loss) gain from equity method investments for the nine months ended September 30, 2020 were as follows:

 

 

Approximate

 

 

Carrying value

 

 

(Loss) gain from equity

method investments

for the nine months ended

 

 

 

ownership %

 

 

September 30, 2020

 

 

September 30, 2020

 

Investment in Fluent

 

50%

 

 

$

5,147

 

 

$

(4,725

)

Investment in Cannfections

 

50%

 

 

 

3,764

 

 

 

230

 

Total equity method investments

 

 

 

 

 

$

8,911

 

 

$

(4,495

)

 

 

 

Approximate

 

 

Carrying value

 

 

(Loss) gain from equity

method investments

for the nine months ended

 

 

 

ownership %

 

 

December 31, 2019

 

 

September 30, 2019

 

Investment in Fluent

 

50%

 

 

$

7,836

 

 

$

(1,837

)

Investment in Cannfections

 

50%

 

 

 

3,612

 

 

 

 

Total equity method investments

 

 

 

 

 

$

11,448

 

 

$

(1,837

)

 

Summary financial information for the Company’s equity method investments on an aggregate basis is as follows:

 

 

 

September 30, 2020

 

 

December 31, 2019

 

Current assets

 

$

12,346

 

 

$

13,942

 

Noncurrent assets

 

$

5,205

 

 

$

4,987

 

Current liabilities

 

$

4,965

 

 

$

1,561

 

Noncurrent liabilities

 

$

 

 

$

 

 

 

 

Nine months ended September 30,

 

 

 

2020

 

 

2019

 

Revenue

 

$

4,854

 

 

$

 

Gross profit

 

$

2,032

 

 

$

 

Net loss

 

$

(8,991

)

 

$

(3,160

)