FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

5. 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, 2022
	Total		Level 1		Level 2		Level 3
Investment in common stock of Alzamend Neuro, Inc. (“Alzamend”) – a related party	$	6,449,000	$	6,449,000	$	-	$	-
Investments in marketable equity securities		6,590,000		6,590,000		-		-
Cash and marketable securities held in trust account		118,193,000		118,193,000		-		-
Investments in other equity securities		13,340,000		-		-		13,340,000
Total assets measured at fair value	$	144,572,000	$	131,232,000	$	-	$	13,340,000

	Fair Value Measurement at December 31, 2021
	Total		Level 1		Level 2		Level 3
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 other equity securities		9,215,000		-		-		9,215,000
Total assets measured at fair value	$	179,550,000	$	170,335,000	$	-	$	9,215,000

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. For investments where little or no public market exists, management’s determination of fair value is based on the best available information which may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration various factors including earnings history, financial condition, recent sales prices of the issuer’s securities and liquidity risks.

The following table summarizes the changes in investments in other 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, 2022:

	Investments in other equity securities
Balance at January 1, 2022	$	9,215,000
Investment in preferred stock		11,566,000
Change in fair value of financial instruments		34,118,000
Conversion to marketable securities		(41,560,000	)
Balance at December 31, 2022	$	13,339,000

Equity Investments for Which Measurement Alternative Has Been Selected

As of December 31, 2022 and 2021, the Company held equity investments in other securities valued at $29.2 million and $21.1 million, respectively, that were valued using a measurement alternative. These investments are included in other equity securities in the accompanying consolidated balance sheets.

Measurement Alternative Impairment

The Company has made cumulative downward adjustments for impairments for equity securities that do not have readily determinable fair values as of December 31, 2022, totaling $11.5 million. These adjustments have been reflected in other income (expense) on the consolidated statement of operations and comprehensive loss.