FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

6. FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy:

	Fair Value Measurement at December 31, 2021
	Total		Level 1		Level 2		Level 3
Investment in term promissory note of Ault & Company, Inc. (“Ault & Company”) and other – a related party	$	2,842,000	$	-	$	-	$	2,842,000
Investment in common stock of Alzamend – a related party		13,230,000		13,230,000		-		-
Investments in marketable equity securities		40,380,000		40,380,000		-		-
Cash and marketable securities held in trust account		116,725,000		116,725,000		-		-
Investments in equity securities		30,482,000		-		-		30,482,000
Total assets measured at fair value	$	203,659,000	$	170,335,000	$	-	$	33,324,000

	Fair Value Measurement at December 31, 2020
	Total		Level 1		Level 2		Level 3
Investments in convertible promissory notes and advances of Alzamend – related parties	$	797,000	$	-	$	-	$	797,000
Investments in marketable equity securities		653,000		-		-		653,000
Investments in marketable equity securities		2,563,000		2,563,000		-		-
Investments in equity securities		262,000		-		-		262,000
Total assets measured at fair value	$	4,275,000	$	2,563,000	$	-	$	1,712,000

The Company assesses the inputs used to measure fair value using the three-tier hierarchy based on the extent to which inputs used in measuring fair value are observable in the market. See Note 13 for activity related to investments in convertible promissory notes and advances of Alzamend – related parties, and investment in common stock and warrants of Alzamend – a related party. The decline in investment in warrants of public companies was due to a decrease upon remeasurement of fair value of the underlying warrants.

The following table summarizes the changes in investments in equity securities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for the year ended December 31, 2021:

	Investments in
	equity
	securities
Balance at January 1, 2021	$	262,000
Investment in convertible preferred stock		14,950,000
Investment in warrants		2,673,000
Change in fair value of warrants		8,224,000
Conversion of loans to equity securities		3,520,000
Unrealized gains on equity securities		2,510,000
Conversion to marketable securities		(1,657,000	)
Balance at December 31, 2021	$	30,482,000

See Note 13 for the changes in investments in Alzamend and Ault & Company measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) during the year ended December 31, 2021.