Blüm Holdings Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Investments

Note 5 - Investments

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Investment [Text Block]

NOTE 5 – INVESTMENTS

Mystic Holdings

In September 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. In accordance with 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 September 30, 2024, the fair value of the investment was $0.83 million. The Company recorded an unrealized gain on investment of $0.52 million and $0.17 million for the three and nine months ended September 30, 2024, respectively.

The following tables present the Company’s financial instruments that are measured and recorded at fair value on the Company’s consolidated balance sheets on a recurring basis:

	(in thousands)
	*September 30, 2024*
	*Amount*		*Level 1*		*Level 2*		*Level 3*
Investment in Mystic Holdings, Inc.	$	833	$	833	$	—	$	—
Total	$	833	$	833	$	—	$	—

	(in thousands)
	*December 31, 2023*
	*Amount*		*Level 1*		*Level 2*		*Level 3*
Investment in Mystic Holdings, Inc.	$	667	$	667	$	—	$	—
Investment in IVXX Gardens I, Inc.		1,400		—		—		1,400
Total	$	2,067	$	667	$	—	$	1,400