The Company previously accounted for its investment in Dense Air, which prior to March 7, 2022, was a wholly-owned subsidiary of the Company, as an equity method investment. Dense Air was historically funded by its sole lender through convertible debt with various restrictions and requirements including a conversion option on substantially all of the ownership interest in Dense Air. Dense Air was designed to acquire and hold specific assets and the fixed price conversion option was economically similar to a call option on the assets of Dense Air. Therefore, the Company concluded consolidation was not required. The Company did determine it had significant influence in the operations of Dense Air and therefore, applied the equity method of accounting. Given Dense Air has operated at a loss since its inception, and the Company has not guaranteed the obligations of Dense Air or otherwise committed to provide further financial support, equity method accounting was discontinued.

The Company receives reimbursement of its expenses for providing certain management support functions to Dense Air, a related party, which are not considered material. In addition, the Company is entitled to receive certain fees upon the successful acquisition of spectrum rights by Dense Air, which are recorded as revenue when earned.

On March 22, 2021, an investor acquired the sole lender to Dense Air’s rights and obligations under a convertible loan agreement. Concurrently, the Company received a notice of conversion from the investor to convert the outstanding amount of the loan into shares equating to 95% of the share capital of Dense Air. On March 7, 2022, the conversion was finalized. This conversion did not have a significant effect on the Company’s condensed consolidated balance sheets, statements of operations or cash flows.

The investment had no carrying value as of December 31, 2021 and March 31, 2022.