AdvisorEngine Inc. - Sale of Financial Interests (Tables)

12 Months Ended

Dec. 31, 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:


	December 31, 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	$	—	$	—	$	58,310	$	28,172	(1)

(1)

Net of an impairment of $30,138 at December 31, 2019, which was determined based upon that status of the sale negotiations at the time. During the year ended December 31, 2020, the Company adjusted the carrying value of its financial interests by recording an impairment of $19,672 on its notes receivable and subsequently recognized a gain of $1,093 arising from an adjustment to the estimated fair value of consideration received

These fair value adjustments recognized during the year ended December 31, 2020 were based upon the final sale terms as disclosed above. The gain was included in other gains and losses, net on the Consolidated Statements of Operations.