The company’s digital assets have a net book value of $327,000.

PLBY Group (PLBY), the parent company of the late Hugh Hefner’s Playboy Enterprises, said it took a $4.9 million impairment loss on its Ether (ETH) holdings last year as crypto winter caused a sharp drop in broader market prices.

The lifestyle and media company said it accepts ether as payment for its “ Rabbitars ” non-fungible tokens ( NFTs ) launched in 2021, and it holds them as digital assets on its balance sheet, according to an annual filing Thursday. The filing said the digital assets were valued at $327,000 as of last year.

The digital asset the company calls Ethereum was valued at $1.75 million as of Sept. 30, 2022, a previous filing showed.

The company explains that it accounts for its digital assets as "indefinite-lived intangible assets" and that impairment losses may occur at any time if the fair value of an asset falls below its carrying amount. The company cannot recover the impairment losses it incurs on digital assets, even if the fair value of the asset increases after the impairment loss is incurred.

"During the year ended December 31, 2022, the market price of one [ether] on our primary market ranged from $964 to $3,813, but the carrying value of each ether held by us at the end of the reporting period reflects the lowest price for one ether quoted on an active exchange at any time since receipt," the filing said. "Accordingly, negative fluctuations in the market price of ether could have a material impact on the Company's earnings and book value, and ether held on the balance sheet would be sold at a profit only if an increase in price would have a positive impact on the Company's earnings," the filing said.

The company launched the “Rabbitar” NFT project at the peak of the crypto market in October 2021. Ether, the native token of the Ethereum blockchain, has lost about 60% of its value since October 2021, according to TradingView data.

In early 2021, Playboy entered the NFT and blockchain technology industry with its NFT drop titled “Liquid Summer,” a collection of digital art created in collaboration with artist Slimesunday. Released in May 2021, the collection features archival photos of Playboy model Lenna Sjööblom, the so-called “First Lady of the Internet.”

However, these NFT drops are not the company’s first foray into digital assets. In 2018, Playboy TV began accepting Bitcoin (BTC) payments. In June, Bitcoin payments were expanded to Playboy.com.