XML 31 R16.htm IDEA: XBRL DOCUMENT

Deferred Consideration - Gold Payments

9 Months Ended

Sep. 30, 2023

Deferred Consideration Gold Payments [Abstract]

9. Deferred Consideration—Gold Payments

Deferred consideration—gold payments represented an obligation the Company assumed in connection with its acquisition of the European exchange-traded commodity, currency and leveraged-and-inverse business of ETFS Capital Limited (“ETFS Capital”) which occurred on April 11, 2018. The obligation was for fixed payments to ETFS Capital of physical gold bullion equating to 9,500 ounces of gold per year through March 31, 2058 and then subsequently reduced to 6,333 ounces of gold per year continuing into perpetuity (“contractual gold payments”). ETFS Capital continued to pass through the payments to other parties to meet its payment obligations under prior royalty agreements, including to Gold Bullion Holdings (Jersey) Limited (“GBH”), a subsidiary of the World Gold Council (“WGC”), Graham Tuckwell (“GT”), and Rodber Investments Limited (“RIL”), an entity controlled by GT, who is also the Chairman of ETFS Capital.

On May 10, 2023, the Company terminated its contractual gold payments obligation for aggregate consideration totaling $136,903 pursuant to a Sale, Purchase and Assignment Deed (the “SPA Agreement”) with WisdomTree International Holdings Ltd, Electra Target HoldCo Limited, ETFS Capital, WGC, GBH, GT and RIL. Under the terms of the transaction, GBH received approximately $4,371 in cash and 13,087 shares of Series C Non-Voting Convertible Preferred Stock of the Company, $0.01 par value per share convertible into 13,087,000 shares of the Company’s common stock, and RIL received approximately $45,634 in cash.

The Company determined the present value of the deferred consideration—gold payments of $0 and $200,290 at September 30, 2023 and December 31, 2022 using the following assumptions:

	September 30, 2023		December 31, 2022
Forward-looking gold price (low)—per ounce		n/a	$	1,858
Forward-looking gold price (high)—per ounce		n/a	$	3,126
Forward-looking gold price (weighted average)—per ounce		n/a	$	2,237
Discount rate		n/a		11.0%
Perpetual growth rate		n/a		1.3%

During the three and nine months ended September 30, 2023 and 2022, the Company recognized the following in respect of deferred
consideration—gold payments:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022

Contractual gold payments	$	—	$	4,105	$	6,069	$	13,001
Contractual gold payments—gold ounces paid		—		2,375		3,167		7,125
Gain on revaluation/termination of deferred consideration—gold payments	$	—	$	77,895	$	61,953	$	63,188