XML 39 R16.htm IDEA: XBRL DOCUMENT v3.19.1
Note Receivable
 3 Months Ended
Mar. 31, 2019
Receivables [Abstract]  
Note Receivable
8. Note Receivable
The Company has an outstanding unsecured promissory note from AdvisorEngine Inc. (“AdvisorEngine”). All principal amounts under the note bear interest from the date such amounts are advanced until repaid at a rate of 5% 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% 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 promissory note mature on
December 29, 2021
.
The following is a summary of the outstanding note receivable balance:
 
 
 
March 31,
2019
 
 
December 31,
2018
 
Note receivable (face value)
 
$
30,000
 
 
$
30,000
 
Less: Original issue discount (“OID”), unamortized
 
 
(2,378
)
 
 
(2,582
)
Plus: PIK interest
 
 
1,695
 
 
 
1,304
 
Total note receivable, net
 
$
29,317
 
 
$
28,722
 
During the three months ended March 31, 2019 and March 31, 2018, the Company recognized interest income of $595 and $416, respectively, which included OID amortization and accrued PIK interest. The Company determined that an allowance for credit loss was not necessary at March 31, 2019 and December 31, 2018 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 (classified as Level 2 within the fair value hierarchy and determined using high yield credit spreads) was $28,802 and $27,618 at March 31, 2019 and December 31, 2018, respectively.