The PLBY Group released the Rabbitars NFT collection in October 2021 and received Ethereum as payment.
However, ETH has since decreased by about 60%. As of December 2022, the net book value of the company’s digital assets amounted to $327,000, while in the third quarter it was estimated at $1.75 million.
Since Ethereum is classified as intangible assets with an indefinite life, this has caused an impairment loss to be recorded in the SEC’s 2022 filing. The document states that negative fluctuations in the price of Ethereum can have a significant impact on the company’s profits and losses are not recovered when the fair value is greater than the carrying amount.
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