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Equity Method Investments | 3 Months Ended
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Mar. 31, 2023
Equity Method Investments and Joint Ventures [Abstract] |
Equity Method Investments | Note 6 – Equity Method Investments In March 2020, HGC Origination I LLC and HGC Funding I LLC were formed as joint ventures with a partner for purposes of conducting business relating to the sourcing, origination and funding of loans to debt purchasing clients. In April 2022, KNFH LLC, of which the Company holds a 25% share, was formed to purchase certain real estate assets and machinery and equipment among partners in a joint venture. In December 2022, DHC8 LLC, of which the Company holds a 13.33% share, was formed to provide funding and receive principal and interest payments as a result of the initial investment. KNFH LLC and DHC8 LLC are joint ventures formed in connection with the Company’s Industrial Assets Division, whereas HGC Origination I LLC and HGC Funding I LLC were formed in connection with the Financial Assets Division. The table below details the Company’s joint venture revenues and earnings (in thousands):
|  | Three Months Ended March 31, |
|  | 2023 |  |  | 2022 |
Revenues: |  |  |  |  |  |
KNFH LLC |  | $ | 440 |  |  | $ | — |
DHC8 LLC |  |  | 445 |  |  |  | — |
HGC Funding I LLC and Origination I LLC |  |  | 1,297 |  |  |  | 327 |
Total revenues |  | $ | 2,182 |  |  | $ | 327 |
Operating income (loss): |  |  |  |  |  |
KNFH LLC |  | $ | (10 | ) |  | $ | — |
DHC8 LLC |  |  | 378 |  |  |  | — |
HGC Funding I LLC and Origination I LLC |  |  | 1,304 |  |  |  | 327 |
Total operating income |  | $ | 1,672 |  |  | $ | 327 |
The table below details the summarized components of assets and liabilities of the Company’s joint ventures, as of March 31, 2023 and December 31, 2022 (in thousands):
|  | March 31, |  |  | December 31, |
|  | 2023 |  |  | 2022 |
Assets: |  |  |  |  |  |
KNFH LLC |  | $ | 528 |  |  | $ | — |
DGC8 LLC |  |  | 8,332 |  |  |  | 8,561 |
HGC Funding I LLC and Origination I LLC |  |  | 49,547 |  |  |  | 53,385 |
Total assets |  | $ | 58,407 |  |  | $ | 61,946 |
Liabilities: |  |  |  |  |  |
KNFH LLC |  | $ | 385 |  |  | $ | 47 |
DGC8 LLC |  |  | 1,165 |  |  |  | 1,028 |
HGC Funding I LLC and Origination I LLC |  |  | 21 |  |  |  | 1,504 |
Total liabilities |  | $ | 1,571 |  |  | $ | 2,579 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI https://asc.fasb.org/topic&trid=2196965 + Details
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