Available-for-Sale Securities (Tables)

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-Sale Securities

The following table provides certain information related to available-for-sale debt securities (in thousands):

	As of September 30, 2021
	Cost		Interest		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Available-for-sale securities:
SILK EV Note (a)	$	15,000	$	607	$	4	$	(20)	$	15,591
CyVolve Note (b)		200		1		—		—		201
Via Motor Note (c)		42,500		149		—		—		42,649
Total available-for-sale securities	$	57,700	$	757	$	4	$	(20)	$	58,441

(a)On January 28, 2021, the Company invested $15.0 million in Silk EV via a convertible promissory note. Silk is an Italian engineering and design services company that has recently partnered with FAW to form a new company (“Silk-FAW”) to produce fully electric, luxury vehicles for the Chinese and global auto markets.

The terms of the convertible promissory note are as follows:

•The principal amount is $15.0 million;

•The interest rate is 6%;

•The maturity date is January 28, 2022;

•Upon a qualified equity financing, as defined, the outstanding principal and accrued interest shall convert into equity securities sold in the qualified equity financing at a conversion price equal to the cash price for the equity securities times 0.80;

•The events of default are as follows:

◦SILK EV fails to pay timely the principal and accrued interest due under this note;

◦SILK EV files any petition for relief under bankruptcy, reorganization, insolvency or similar other law; or

◦An involuntary petition is filed against SIK EV under bankruptcy or similar statute.

The Company accounts for the Silk EV note as an available-for-sale security at its fair value, with changes in fair value, if any, recorded in other comprehensive income. The Company recorded in other comprehensive income an increase of the note's fair value of $4,000 in the three months ended September 30, 2021. The Company recorded in other comprehensive income a reduction of the note's fair value of $16,275 in the nine months ended September 30, 2021.

(b)On July 30, 2021 the Company invested $0.1 million in CyVolve, Inc. (“CyVolve,”) via a secured promissory note and on September 24, 2021, the Company invested another $0.1 million in CyVolve, via a secured promissory note. Cyvolve is a next-generation provider of data security, to ensure constant encryption and Artificial Intelligence-driven pervasive control of an organization’s data across platforms.

The terms of the secured promissory notes are as follows:

•The principal amount is $0.1 million each;

•The interest rate is 8%;

•The maturity dates are January 30, 2022;

•The events of default are as follows:

◦CyVolve fails to pay timely the principal and accrued interest due under this note;

◦CyVolve files any petition for relief under bankruptcy, reorganization, insolvency or similar other law; or

◦An involuntary petition is filed against CyVolve under bankruptcy or similar statute.

The Company accounts for the CyVolve notes as an available-for-sale security at its fair value, with changes in fair value, if any, recorded in other comprehensive income.

(c)On August 30, 2021, the Company invested $42.5 million in VIA Motors, via a convertible promissory note. VIA Motors is a leading electric commercial vehicle company with proven advanced electric drive technology, delivering sustainable mobility solutions for a more livable world. VIA Motors designs, manufactures and markets electric commercial vehicles, with superior life-cycle economics, for use across a broad cross-section of the global fleet customer base.

The terms of the convertible promissory note are as follows:

•The principal amount is $42.5 million;

•The interest rate is 4%;

•The maturity date is the earlier of the closing date of the acquisition or August 30, 2022;

•The events of default are as follows:

◦VIA Motors fails to pay timely the principal and accrued interest due under this note;

◦VIA Motors files any petition for relief under bankruptcy, reorganization, insolvency or similar other law; or

◦An involuntary petition is filed against VIA Motors under bankruptcy or similar statute.