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Business Combination (Tables) | 12 Months Ended
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Dec. 31, 2019
Business Combinations [Abstract] |
Summary of Allocation Of Purchase Price | The following table summarizes the allocation of the purchase price as of the acquisition date:
Purchase price |  |  |
Preferred Shares issued |  |  | 14,750 |
Conversion ratio |  |  | 1,000 |
Common stock equivalents |  |  | 14,750,000 |
Common Shares issued |  |  | 15,250,000 |
Total shares issued |  |  | 30,000,000 |
WisdomTree stock price (1) |  | $ | 9.00 |
Equity portion of purchase price |  | $ | 270,000 |
Cash portion of purchase price |  |  |  |
Term Loan (Note 13) |  |  | 200,000 |
Cash on hand |  |  | 53,000 |
Purchase price |  |  | 523,000 |
Deferred consideration (Note 12) |  |  | 172,746 |
Total |  | $ | 695,746 |
Allocation of consideration |  |  |  |
Cash and cash equivalents |  |  | 13,687 |
Receivables and other current assets |  |  | 14,069 |
Intangible assets (2) |  |  | 601,247 |
Other current liabilities |  |  | (17,314 | )
Fair value of net assets acquired |  |  | 611,689 |
Goodwill resulting from the ETFS Acquisition (3) |  | $ | 84,057 |
(1) | The closing price of the Company’s common stock on April 10, 2018, the trading day prior to the closing date of the acquisition.
(2) | Represents purchase price allocated to customary advisory agreements. The fair value of the intangible assets was determined using an income approach (discounted cash flow analysis) which relied upon significant unobservable inputs including a revenue growth multiple of 3% to 4% and a weighted average cost of capital of 11.6%. These intangible assets were determined to have an indefinite useful life and are not deductible for tax purposes. A deferred tax liability associated with these intangible assets was not recognized as the intangibles arose in Jersey, a jurisdiction where the Company is subject to a zero percent tax rate.
(3) | Goodwill arising from the ETFS Acquisition represents the value of synergies created from combining the operations of ETFS and the Company. The goodwill is not deductible for tax purposes as the transaction was structured as a stock acquisition occurring in the United Kingdom.
Summary of Operating Results of ETFS since the Acquisition Date | The Company’s Consolidated Statements of Operations include the following operating results of ETFS since the acquisition date of April 11, 2018 through December 31, 2018:
Revenues: |  | $55,882
Income before taxes: |  | $23,197 (including a gain on revaluation of deferred consideration of $12,220)
Summary of Pro Forma Financial Information | The following table presents unaudited pro forma financial information of the Company as if the ETFS Acquisition had been consummated on January 1, 2017. The information was derived from the historical financial results of the Company and ETFS for all periods presented and was adjusted to give effect to pro forma events that are directly attributable to the acquisition, factually supportable and expected to have a continuing impact on the combined results following the acquisition.
|  | Years Ended December 31, |
|  | 2018 |  |  | 2017 |
Revenues |  | $ | 297,541 |  |  | $ | 309,878 |
Net income |  | $ | 37,336 |  |  | $ | 46,414 |

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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=116869197&loc=d3e4845-128472 + Details
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