XML 29 R13.htm IDEA: XBRL DOCUMENT
v3.21.2

Fair Value Measurements | 9 Months Ended
--- | ---
Sep. 30, 2021
Fair Value Disclosures [Abstract] |
Fair Value Measurements | 4. Fair Value Measurements The fair value of financial instruments is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., “the exit price”) in an orderly transaction between market participants at the measurement date. ASC 820, Fair Value Measurement , establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs reflect assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the transparency of inputs as follows: Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 – Instruments whose significant drivers are unobservable. The availability of observable inputs can vary from product to product and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by management in determining fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The tables below summarize the categorization of the Company’s assets and liabilities measured at fair value. During the three and nine months ended September 30, 2021 and 2020 there were no transfers between Levels 2 and 3.
|  | September 30, 2021 |
|  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents |  | $ | 20,143 |  |  | $ | 20,143 |  |  | $ | — |  |  | $ | — |
Securities owned, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
ETFs |  |  | 21,454 |  |  |  | 21,454 |  |  |  | — |  |  |  | — |
Pass-through GSEs |  |  | 95,785 |  |  |  | 24,969 |  |  |  | 70,816 |  |  |  | — |
Corporate bonds |  |  | 2,151 |  |  |  | — |  |  |  | 2,151 |  |  |  | — |
Total |  | $ | 139,533 |  |  | $ | 66,566 |  |  | $ | 72,967 |  |  | $ | — |
Non-recurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securrency, Inc. – Series A convertible preferred stock (1) |  | $ | 8,488 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,488 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deferred consideration (Note 9) |  | $ | 224,953 |  |  | $ | — |  |  | $ | — |  |  | $ | 224,953 |
(1) | Fair value of $8,488 and $8,349 determined on June 9, 2021 and March 8, 2021, respectively (Note 7).
|  | December 31, 2020 |
|  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents |  | $ | 660 |  |  | $ | 660 |  |  | $ | — |  |  | $ | — |
Securities owned, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
ETFs |  |  | 24,165 |  |  |  | 24,165 |  |  |  | — |  |  |  | — |
Pass-through GSEs |  |  | 8,613 |  |  |  | — |  |  |  | 8,613 |  |  |  | — |
Corporate bonds |  |  | 2,117 |  |  |  | — |  |  |  | 2,117 |  |  |  | — |
Total |  | $ | 35,555 |  |  | $ | 24,825 |  |  | $ | 10,730 |  |  | $ | — |
Non-recurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
AdvisorEngine Inc. (“AdvisorEngine”) – Financial interests (1) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Thesys Group, Inc. (“Thesys”) – Series Y Preferred Stock (1) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deferred consideration (Note 9) |  | $ | 230,137 |  |  | $ | — |  |  | $ | — |  |  | $ | 230,137 |
Non-recurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Convertible notes (2) |  | $ | 170,191 |  |  | $ | — |  |  | $ | 170,191 |  |  | $ | — |
(1) | The fair value of the AdvisorEngine financial interests of $9,592 was determined on May 4, 2020, the date on which these financial interests were sold (Note 23). Thesys was written down to zero on September 30, 2020.
(2) | Fair value of $145,847 and $24,344 determined for convertible notes raised on June 16, 2020 and August 13, 2020, respectively (Note 11).
Recurring Fair Value Measurements - Methodology Cash Equivalents (Note 3) – These financial assets represent cash invested in highly liquid investments with original maturities of less than 90 days. These investments are valued at par, which approximates fair value, and are classified as Level 1 in the fair value hierarchy. Securities Owned (Note 5) – Securities owned are investments in ETFs, pass-through GSEs and corporate bonds. ETFs are generally traded in active, quoted and highly liquid markets and are therefore classified as Level 1 in the fair value hierarchy. Pricing of pass-through GSEs and corporate bonds include consideration given to collateral characteristics and market assumptions related to yields, credit risk and timing of prepayments and are therefore generally classified as Level 2. Pass-through GSE positions invested in through a fund structure with a quoted market price on an exchange are generally classified as Level 1. Deferred Consideration (Note 9) – Deferred consideration represents the present value of an obligation to pay gold into perpetuity. The following table presents a reconciliation of beginning and ending balances of recurring fair value measurements classified as Level 3:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Deferred consideration (Note 9) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 226,706 |  |  | $ | 198,784 |  |  | $ | 230,137 |  |  | $ | 173,024 |
Net realized losses/(gains) (1) |  |  | 4,250 |  |  |  | 4,539 |  |  |  | 12,834 |  |  |  | 12,362 |
Net unrealized (gains)/losses (2) |  |  | (1,737 | ) |  |  | 8,870 |  |  |  | (5,066 | ) |  |  | 34,436 |
Settlements |  |  | (4,266 | ) |  |  | (4,445 | ) |  |  | (12,952 | ) |  |  | (12,074 | )
Ending balance |  | $ | 224,953 |  |  | $ | 207,748 |  |  | $ | 224,953 |  |  | $ | 207,748 |
(1) | Recorded as contractual gold payments expense on the Company’s Consolidated Statements of Operations.
(2) | Recorded as gain/(loss) on revaluation of deferred consideration – gold payments on the Company’s Consolidated Statements of Operations.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
Name: | us-gaap_FairValueMeasurementInputsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration