Equity Method Investment

12 Months Ended

Dec. 31, 2023

Equity Method Investment

Equity Method Investment

6. Equity Method Investment 

As of December 31, 2023, the Company’s total ownership of MetCom Inc., a privately-owned Japanese joint stock company (kabushiki kaisha) (“MetCom”), consisted of 702,334 shares representing ownership of 14.8%. The Company provides licenses to its technology, infrastructure and subscriber equipment to MetCom to support MetCom’s efforts in commercializing terrestrial positioning technology (both TerraPoiNT and Pinnacle) in Japan. Due to the technological dependencies, the Company's equity ownership and representation on MetCom's board of directors, the Company has significant influence, but not controlling interest, over MetCom. The Company’s investment in MetCom is accounted for under the equity method. The basis difference in the Company’s cost basis and the basis reflected at the investee entity level is allocated to equity method goodwill and is not amortized. The Company recognized a loss of $191 thousand for the year ended December 31, 2023 in other income (expense). The carrying value of the Company's investment in MetCom was $704 thousand as of December 31, 2023 and is classified in other long-term assets. As of December 31, 2023 and December 31, 2022, the Company had $107 thousand and $279 thousand in accounts receivable from MetCom, respectively.

The Company holds a warrant (the “Warrant”) issued by MetCom which entitles the Company to purchase additional shares at an exercise price of JPY 10 per share, such that the Company may obtain an aggregate total of 33% of MetCom common stock on an “as-converted” basis. The Warrant is subject to certain vesting conditions which were not met as of December 31, 2023; therefore, the Warrant was not exercisable.