Investment in Viking

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Investment in Viking

Investment in Viking

Our ownership in Viking was approximately 10.3% as of December 31, 2019, and we account for it as investment in an available-for-sale security, which is measured at fair value, with changes in fair value recognized in net income.

Prior to February 2018, we accounted for our investment in Viking under the equity method. As a result of Viking's public stock offerings, we recorded a dilution gain of $2.7 million for the year ended December 31, 2017. These amounts were recognized in Loss from Viking in our consolidated statement of operations. Our equity ownership interest in Viking decreased during the first quarter of 2018 to approximately 12.4% due to Viking's financing events in February 2018. As a result, in February 2018, we concluded that we did not exert significant influence over Viking and discontinued accounting for our investment in Viking under the equity method. Viking is considered a related party as we maintain a seat on Viking's board of directors.

As of December 31, 2019 and December 31, 2018, we recorded our common stock in Viking at fair value of $48.4 million and $46.2 million, respectively. We also have outstanding warrants to purchase 1.5 million shares of Viking's common stock at an exercise price of $1.50 per share. We recorded the warrants in "investment in Viking" in our consolidated balance sheets at fair value of $9.9 million and $9.3 million at December 31, 2019 and 2018, respectively. See further discussion in “Note (5), Fair Value Measurement.”

Subsequent to the adoption of ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10), on January 1, 2018, we no longer account for our investment in Viking under the equity method; instead, it is measured at fair value, with changes in fair value recognized in net income (loss).