Note 2 - Ownership Interests and Advances

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Investments in and Advances to Affiliates, Schedule of Investments [Text Block]

2. Ownership Interests and Advances

The following summarizes the carrying value of the Company’s ownership interests and advances. 

	September 30, 2022		December 31, 2021
	(Unaudited - In thousands)
Equity Method:
Companies	$	12,210	$	21,091
Private equity funds		117		117
		12,327		21,208
Other Method:
Companies, fair value		1,389		4,549
Companies, fair value measurement alternative		687		514
Private equity funds, fair value measurement alternative		250		250
		2,326		5,313
Advances to companies		4,606		—
	$	19,259	$	26,521

In September 2022, Lumesis, Inc. was acquired by another entity for cash.  The Company received $5.3 million in cash proceeds in connection with this transaction, excluding holdbacks and escrows.  Additional cash proceeds may be received from the final determination of net working capital in the fourth quarter and the resolution of other various contingencies some of which will not be recognized until resolved.  This transaction resulted in a gain of $4.7 million, including $0.8 million other receivable related to an indemnification escrow, for the three and nine month periods ended September 30, 2022.   

There were no impairments recorded during the three and nine months ended September 30, 2022, respectively. During the three and nine months ended September 30, 2021, the Company recorded an impairment of $2.5 million related to reduced expectations for certain Other ownership interests, which is reflected in Other income (loss) in the consolidated Statement of Operations.

As of  September 30, 2022, the Company held ownership interests accounted for using the equity method in 8 non-consolidated companies.  Certain of the Company's ownership interests as of September 30, 2022 included the following:

Company Name	Safeguard Primary Ownership as of September 30, 2022	Accounting Method
Aktana, Inc.	13.6%	Equity
Clutch Holdings, Inc.	41.7%	Equity
InfoBionic, Inc.	25.2%	Equity
meQuilibrium	31.5%	Equity
Moxe Health Corporation	19.3%	Equity
Prognos Health Inc.	28.4%	Equity
Syapse, Inc.	11.0%	Equity
Trice Medical, Inc.	12.6%	Equity

Summarized Financial Information

The following table summarizes the statement of operations data for the companies accounted for under the equity method for the three and nine months ended September 30, 2022 and 2021, respectively. These results have been compiled from the respective companies' financial statements, reflect certain historical adjustments, and are reported on a one quarter lag basis. Results of operations of the companies are excluded for periods prior to their acquisition, subsequent to their disposition and subsequent to the discontinuation of the equity method of accounting. Historical results are not adjusted when the Company exits, writes-off or discontinues the equity method of accounting. 

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	(Unaudited - In thousands)
Results of Operations:
Revenue	$	34,170		$	35,447		$	109,460		$	106,097
Gross profit	$	19,741		$	23,023		$	67,314		$	69,124
Net loss	$	(41,071	)	$	(25,390	)	$	(106,258	)	$	(77,092	)