AdvisorEngine Inc. - Sale of Financial Interests (Tables)

9 Months Ended

Sep. 30, 2020

Summary of Ranges and Weighted Averages of Significant Unobservable Inputs Used to Determine Fair Value of Contingent Payments

The table below presents the range and weighted averages of significant unobservable inputs utilized in the Monte-Carlo simulation (classified as Level 3 in the fair value hierarchy):


Unobservable Inputs (Initial Recognition – May 4, 2020 )
Forecasted revenue simulated forward as a percentage of the pre-defined revenue targets		34% - 71% (47% weighted average)
Revenue volatility		25%

Summary of Carrying Value Information of AdvisorEngine Financial Interests

Summarized below are the financial interests previously held:


	September 30, 2020					December 31, 2019
	Amortized Cost, plus Accrued Interest		Net Carrying Value			Amortized Cost, plus Accrued Interest		Net Carrying Value
Unsecured convertible note	$	—	$	—		$	2,126	$	2,126
Unsecured non-convertible note		—		—			31,184		26,046

Subtotal—Notes receivable		—		—			33,310		28,172
Preferred stock		—		—			25,000		—

Total	$	—	$	—	(1)	$	58,310	$	28,172	(1)

(1)

Net of an impairment of $30,138 at December 31, 2019. During the nine months ended September 30, 2020, the Company recorded an impairment of $19,672 on the carrying value of the notes receivable. During the three and nine months ended September 30, 2020, the Company recognized a gain of $225 and $1,093, respectively, arising from an adjustment to the estimated fair value of consideration received from the sale of

its

financial interests in AdvisorEngine. These gains were included in other gains and losses, net on the Consolidated Statements of Operations.