Quarterly report pursuant to Section 13 or 15(d)

Margin Loan

v3.22.2.2
Margin Loan
6 Months Ended
Jun. 30, 2022
Disclosure Margin Loan Abstract  
Margin Loan

Note 15: Margin Loan

 

As of June 30, 2022, the Company had an outstanding balance in its margin loan account of $61.1 million, an increase of $54.7 million as compared to December 31, 2021. The Company borrowed an additional $59.0 million from its investment margin account during the six months ended June 30, 2022 and repaid $4.5 million with cash received from sales and/or redemptions of its marketable securities. During the three months ended March 31, 2022, the borrowed amounts were used to finance the Company’s additional investments in YFE and the closing of the acquisitions of Ameba and WOW, in each case pledging certain of its marketable securities as collateral. During the three months ended the additional borrowings of $3.2 million related to the Companies final obligated purchase of YFE shares and transaction costs related to the Wow Acquisition. The interest rate for these investment margin account borrowings fluctuates based on the Federal Funds Rate plus 0.65% with interest only payable monthly. The weighted average interest rate was 1.23% on an average margin loan balance of $55.7 million during the three months ended June 30, 2022. The weighted average interest rate was 0.98% on an average margin loan of $34.6 million balance during the six months ended June 30, 2022. The Company incurred interest expense of $201,160 during the six months ended June 30, 2022. The investment margin account borrowings do not mature but are payable on demand as the custodian can issue a margin call at any time, therefore the margin loan is recorded as a current liability on the Company’s condensed consolidated balance sheets.