NOTE 7 – INVESTMENTS

Edible Garden

On May 3, 2022, Edible Garden Corp. ("Edible Garden"), an entity in which the Company had an investment of common stock, completed a 1-for-5 reverse stock split of its outstanding common stock. As a result, the Company held 1,000,000 shares in Edible Garden. On May 5, 2022, Edible Garden announced the pricing of its initial public offering of 2,930,000 shares of its common stock and accompanying warrants to purchase up to 2,930,000 shares of common stock for an exercise price of $5.00 per share. Each share of common stock was sold together with one warrant at a combined offering price of $5.00, for gross proceeds of approximately $14.70 million. As a result of the initial public offering, the Company reassessed its write down on the investment and recorded a write up to its fair value, which is categorized within the fair value hierarchy as Level 2. In November 2022, the lock-up restriction on the Company's shares in Edible Garden expired and accordingly, the Company's investment transferred from Level 2 to Level 1 fair value measurement. Refer to "Note 19 - Fair Value Measurements" for additional information.

During the fiscal first quarter ended March 31, 2023, the Company sold all its shares in Edible Garden and received $0.15 million. As a result, the Company recorded a realized loss on the sale of investments of $0.06 million during the year ended December 31, 2023. During the year ended December 31, 2022, the Company recorded nil in realized or unrealized losses related to its investment in Edible Garden.

Mystic Holdings

On September 12, 2023, the Company entered into a settlement agreement to resolve the outstanding litigation with Mystic Holdings, Inc. (“Mystic”) which confirmed the Company's ownership of 8,323,764 shares of common stock in Mystic and 8,332 shares of Series A preferred stock in Mystic. The Series A preferred stock in Mystic grant 1,100-to-1 voting rights and which convert on a 1-to-1 basis to Mystic common stock. In accordance with ASC 321, “Investments - Equity Securities” (“ASC 321”), the Company recorded the investment in equity securities at fair value based upon the quoted price of the shares in active trading markets (Level 1). As of December 31, 2023 and 2022, the fair value of the investment was $0.67 million and $ - respectively. The Company recorded an unrealized gain on investment of $0.67 million for the year ended December 31, 2023. Refer to “Note 22 – Commitments and Contingencies” for further details on the litigation matter.