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Note Receivable
 12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Note Receivable
8. Note Receivable
 
On December 29, 2017, the Company committed to provide up to $30,000 in additional working capital to AdvisorEngine pursuant to an unsecured promissory note, all of which has been funded. The majority of the funds were used by AdvisorEngine to acquire CRM Software, Inc., known as Junxure, a comprehensive client relationship management software and technology provider for financial advisors.
 
All principal amounts under the note bear interest from the date such amounts were advanced until repaid at a rate of 5.0% per annum, provided that immediately upon the occurrence and during the continuance of an event of default (as defined), interest will be increased to 10.0% per annum. All accrued and unpaid interest is treated as paid-in-kind (“PIK”) by capitalizing such amount and adding it to the principal amount of the original note. AdvisorEngine has the option to prepay the note, in whole or in part, at any time without premium or penalty. All borrowings under the note mature on December 29, 2021.
 
In connection with providing funding to AdvisorEngine for the acquisition of Junxure, the Company secured an option to purchase the remaining equity interests in AdvisorEngine, which has expired. The option was ascribed a fair value of $3,278 (See Note 9) which gave rise to original issue discount
(“OID”) 
reducing the carrying value of the note.
 
 
The following is a summary of the outstanding note receivable balance:
 
 
 
December 31,
2018
 
 
December 31,
2017
 
Note receivable (face value)
 
$
30,000
 
 
$
22,000
 
Less: OID, unamortized
 
 
(2,582
)
 
 
(3,252
)
Plus: PIK interest
 
 
1,304
 
 
 
—
 
Total note receivable, net
 
$
28,722
 
 
$
18,748
 
Commitment remaining
 
 
n/a
 
 
$
8,000
 
 
During the year ended December 31, 2018, the Company recognized interest income of $1,974, which included OID amortization and accrued PIK interest. The Company determined that an allowance for credit loss was not necessary at December 31, 2018 and December 31, 2017 as there have been no adverse events or circumstances since the note was issued which may indicate that its carrying amount may not be recoverable. The fair value of the note receivable at December 31, 2018 was approximately $27,618 and was derived from observable high yield credit spreads. The carrying value of the note receivable at December 31, 2017 approximated fair value.