| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a)
Principles of Consolidation and Basis of Presentation The
consolidated financial statements include the accounts of B. Riley Financial, Inc. and its wholly owned and majority-owned subsidiaries.
The consolidated financial statements also include the accounts of Great American Global Partners, LLC (“GA Global”)
which is controlled by the Company as a result of its ownership of a 50% member interest, appointment of two of the three executive
officers and significant influence over the funding of operations. All intercompany accounts and transactions have been eliminated
upon consolidation. The consolidated financial statements also include the accounts of GA Retail Investments, L.P. which is controlled
by the Company as a result of its ownership of a 50% partnership interest, appointment of executive officers and significant influence
over the operations, and guarantee of certain amounts under the related promissory note. The
accounting guidance requires an enterprise to perform an analysis to determine whether the enterprise’s variable interest
or interests give it a controlling financial interest in a variable interest entity; to require ongoing reassessments of whether
an enterprise is the primary beneficiary of a VIE; to eliminate the solely quantitative approach previously required for determining
the primary beneficiary of a VIE; to add an additional reconsideration event for determining whether an entity is a VIE when any
changes in facts and circumstances occur such that holders of the equity investment at risk, as a group, lose the power from voting
rights or similar rights of those investments to direct the activities of the entity that most significantly impact the entity’s
economic performance; and to require enhanced disclosures that will provide users of financial statements with more transparent
information about an enterprise’s involvement in a VIE. (b)
Use of Estimates The
preparation of the consolidated financial statements in accordance with accounting principles generally accepted in the United
States of American (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expense during
the reporting period. Estimates are used when accounting for certain items such as valuation of securities, reserves for accounts
receivable and slow moving goods held for sale or auction, the carrying value of intangible assets and goodwill, the fair value
of mandatorily redeemable noncontrolling interests, fair value of share based arrangements, fair value of contingent consideration
in business combination’s and accounting for income tax valuation allowances. Estimates are based on historical experience,
where applicable, and assumptions that management believes are reasonable under the circumstances. Due to the inherent uncertainty
involved with estimates, actual results may differ. (c)
Revenue Recognition Revenues
are recognized in accordance with the accounting guidance when persuasive evidence of an arrangement exists, the related services
have been provided, the fee is fixed or determinable, and collection is reasonably assured. Revenues
in the Capital Markets segment are primarily comprised of (i) fees earned from corporate finance, investment banking and wealth
management services; and (ii) revenues from sales and trading activities. Fees
earned from corporate finance and investment banking services are derived from debt, equity and convertible securities offerings
in which the Company acted as an underwriter or placement agent and from financial advisory services rendered in connection with
client mergers, acquisitions, restructurings, recapitalizations and other strategic transactions. Fees from underwriting activities
are recognized in earnings when the services related to the underwriting transaction are completed under the terms of the engagement
and when the income was determined and is not subject to any other contingencies. Revenues
from wealth management services consist primarily of investment management fees that are recognized over the period the services
are provided. Investment management fees are primarily comprised of fees for investment management services and are generally
based on the dollar amount of the assets being managed. Revenues
from sales and trading includes (i) commissions resulting from equity securities transactions executed as agent or principal and
are recorded on a trade date basis, (ii) related net trading gains and losses from market making activities and from the
commitment of capital to facilitate customer orders, (iii) fees paid for equity research and (iv) principal transactions
which include realized and unrealized net gains and losses resulting from our principal investments in equity and other securities
for the Company’s account. Revenues
in the Valuation and Appraisal segment are primarily comprised of fees for valuation and appraisal services. Revenues are recognized
upon the delivery of the completed services to the related customers and collection of the fee is reasonably assured. Revenues
in the Valuation and Appraisal segment also include contractual reimbursable costs which totaled $2,962, $3,052 and $3,013 for
the years ended December 31, 2016, 2015 and 2014, respectively. Revenues
in the Auction and Liquidation segment are comprised of (i) commissions and fees earned on the sale of goods at auctions
and liquidations; (ii) revenues from auction and liquidation services contracts where the Company guarantees a minimum recovery
value for goods being sold at auction or liquidation; (iii) revenue from the sale of goods that are purchased by the Company
for sale at auction or liquidation sales events; (iv) fees earned from real estate services and the origination of loans;
(v) revenues from financing activities is recorded over the lives of related loans receivable using the interest method; and (vi) revenues
from contractual reimbursable expenses incurred in connection with auction and liquidation contracts. Commission
and fees earned on the sale of goods at auction and liquidation sales are recognized when evidence of an arrangement exists, the
sales price has been determined, title has passed to the buyer and the buyer has assumed the risks of ownership, and collection
is reasonably assured. The commission and fees earned for these services are included in revenues in the accompanying consolidated
statements of operations. Under these types of arrangements, revenues also include contractual reimbursable costs which totaled
$10,250, $10,641 and $6,950 for the years ended December 31, 2016, 2015 and 2014, respectively. Revenues
earned from auction and liquidation services contracts where the Company guarantees a minimum recovery value for goods being sold
at auction or liquidation are recognized based on proceeds received. The Company records proceeds received from these types of
engagements first as a reduction of contractual reimbursable expenses, second as a recovery of its guarantee and thereafter as
revenue, subject to such revenue meeting the criteria of having been fixed or determinable. Contractual reimbursable expenses
and amounts advanced to customers for minimum guarantees are initially recorded as advances against customer contracts in the
accompanying consolidated balance sheets. If, during the auction or liquidation sale, the Company determines that the proceeds
from the sale will not meet the minimum guaranteed recovery value as defined in the auction or liquidation services contract,
the Company accrues a loss on the contract in the period that the loss becomes known. During the fourth quarter of 2014, revenues
in the Auction and Liquidation segment also included estimated losses of $6,100 that were accrued at December 31, 2014 on the
performance of one retail liquidation services engagement where we guaranteed a minimum recovery value for goods sold. The
Company also evaluates revenue from auction and liquidation contracts in accordance with the accounting guidance to determine
whether to report Auction and Liquidation segment revenue on a gross or net basis. The Company has determined that it acts as
an agent in a substantial majority of its auction and liquidation services contracts and therefore reports the auction and liquidation
revenues on a net basis. Revenues
from the sale of goods are recorded gross and are recognized in the period in which the sale of goods held for sale or auction
are completed, title to the property passes to the purchaser and the Company has fulfilled its obligations with respect to the
transaction. These revenues are primarily the result of the Company acquiring title to merchandise with the intent of selling
the items at auction or for augmenting liquidation sales. For liquidation contracts where we take title to retail goods, our net
sales represent gross sales invoiced to customers, less certain related charges for discounts, returns, and other promotional
allowances and are recorded net of sales or value added tax. Fees
earned from real estate services and the origination of loans where the Company provides capital advisory services are recognized
in the period earned, if the fee is fixed and determinable and collection is reasonably assured. Revenues
in the Principal Investments - United Online segment are primarily comprised of services revenues, which are derived primarily
from fees charged to pay accounts; advertising and other revenues; and products revenues, which are derived primarily from the
sale mobile broadband service devices, including the related shipping and handling fees. Service
revenues are derived primarily from fees charged to pay accounts and are recognized in the period in which fees are fixed or determinable
and the related services are provided to the customer. The Company’s pay accounts generally pay in advance for their services
by credit card, PayPal, automated clearinghouse or check, and revenues are then recognized ratably over the service period. Advance
payments from pay accounts are recorded in the consolidated balance sheet as deferred revenue. In circumstances where payment
is not received in advance, revenues are only recognized if collectability is reasonably assured. Advertising
revenues consist primarily of amounts from the Company’s Internet search partner that are generated as a result of users
utilizing the partner’s Internet search services and amounts generated from display advertisements. The Company recognizes
such advertising revenues in the period in which the advertisement is displayed or, for performance-based arrangements, when the
related performance criteria are met. In determining whether an arrangement exists, the Company ensures that a written contract
is in place, such as a standard insertion order or a customer-specific agreement. The Company assesses whether performance criteria
have been met and whether the fees are fixed or determinable based on a reconciliation of the performance criteria and the payment
terms associated with the transaction. The reconciliation of the performance criteria generally includes a comparison of customer-provided
performance data to the contractual performance obligation and to internal or third-party performance data in circumstances where
that data is available. In
the normal course of business, the Company will enter into collaborative arrangements with other merchandise liquidators to collaboratively
execute auction and liquidation contracts. The Company’s collaborative arrangements specifically include contractual agreements
with other liquidation agents in which the Company and such other liquidation agents actively participate in the performance of
the liquidation services and are exposed to the risks and rewards of the liquidation engagement. The Company’s participation
in collaborative arrangements including its rights and obligations under each collaborative arrangement can vary. Revenues from
collaborative arrangements are recorded net based on the proceeds received from the liquidation engagement. Amounts paid to participants
in the collaborative arrangements are reported separately as direct costs of revenues. Revenue from collaborative arrangements
in which the Company is not the majority participant is recorded net based on the Company’s share of proceeds received.
There were no revenues and direct cost of services subject to collaborative arrangements during the year ended December 31, 2016,
2015 and 2014. (d)
Direct Cost of Services Direct
cost of services relate to service and fee revenues. The costs consist of employee compensation and related payroll benefits,
travel expenses, the cost of consultants assigned to revenue-generating activities and direct expenses billable to clients in
the Valuation and Appraisal segment. Direct costs of services include participation in profits under collaborative arrangements
in which the Company is a majority participant. Direct costs of services also include the cost of consultants and other direct
expenses related to auction and liquidation contracts pursuant to commission and fee based arrangements in the Auction and Liquidation
segment. Direct cost of services in the Principal Investments - United Online segment include cost of telecommunications and data
center costs, personnel and overhead-related costs associated with operating the Company’s networks and data centers, depreciation
of network computers and equipment, third party advertising sales commissions, license fees, costs related to providing customer
support, costs related to customer billing and processing of customer credit cards and associated bank fees. Direct cost of services
does not include an allocation of the Company’s overhead costs. (e)
Concentration of Risk Revenues
from one liquidation service contract to a retailer represented 13.5% of total revenues during the year ended December 31, 2016.
Revenues from one liquidation service contract to a retailer represented 12.4% of total revenues during the year ended December
31, 2015. Revenues in the Capital Markets, Auction and Liquidation, Valuation and Appraisal and Principal Investments - United
Online segment are primarily generated in the United States, Australia, Canada and Europe. The
Company’s activities in the Auction and Liquidation segment are executed frequently with, and on behalf of, distressed customers
and secured creditors. Concentrations of credit risk can be affected by changes in economic, industry, or geographical factors.
The Company seeks to control its credit risk and potential risk concentration through risk management activities that limit the
Company’s exposure to losses on any one specific liquidation services contract or concentration within any one specific
industry. To mitigate the exposure to losses on any one specific liquidation services contract, the Company sometimes conducts
operations with third parties through collaborative arrangements. The
Company maintains cash in various federally insured banking institutions. The account balances at each institution periodically
exceed the Federal Deposit Insurance Corporation’s (“FDIC”) insurance coverage, and as a result, there is a
concentration of credit risk related to amounts in excess of FDIC insurance coverage. The Company has not experienced any losses
in such accounts. The Company also has substantial cash balances from proceeds received from auctions and liquidation engagements
that are distributed to parties in accordance with the collaborative arrangements. (f)
Advertising Expense The
Company expenses advertising costs, which consist primarily of costs for printed materials, as incurred. Advertising costs totaled
$1,456, $519 and $262 for the years ended December 31, 2016, 2015 and 2014, respectively. Advertising expense is included
as a component of selling, general and administrative expenses in the accompanying consolidated statement of operations. (g)
Share-Based Compensation The
Company’s share based payment awards principally consist of grants of restricted stock and restricted stock units. Share
based payment awards also includes grants of membership interests in the Company’s majority owned subsidiaries. The grants
of membership interests consist of percentage interests in the Company’s majority owned subsidiaries as determined at the
date of grant. In accordance with the applicable accounting guidance, share based payment awards are classified as either equity
or liabilities. For equity-classified awards, the Company measures compensation cost for the grant of membership interests at
fair value on the date of grant and recognizes compensation expense in the consolidated statement of operations over the requisite
service or performance period the award is expected to vest. The fair value of the liability-classified award will be subsequently
remeasured at each reporting date through the settlement date. Change in fair value during the requisite service period will be
recognized as compensation cost over that period. (h)
Income Taxes The
Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included
in the consolidated financial statements or tax returns. Deferred tax liabilities and assets are determined based on the difference
between the financial statement basis and tax basis of assets and liabilities using enacted tax rates in effect for the year in
which the differences are expected to reverse. The Company estimates the degree to which tax assets and credit carryforwards will
result in a benefit based on expected profitability by tax jurisdiction. A valuation allowance for such tax assets and loss carryforwards
is provided when it is determined to be more likely than not that the benefit of such deferred tax asset will not be realized
in future periods. Tax benefits of operating loss carryforwards are evaluated on an ongoing basis, including a review of historical
and projected future operating results, the eligible carryforward period, and other circumstances. If it becomes more likely than
not that a tax asset will be used, the related valuation allowance on such assets would be reduced. (i)
Cash and Cash Equivalents The
Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash
equivalents. (j)
Restricted Cash As
of December 31, 2016, restricted cash included $1,440 of cash collateral related to a retail liquidation engagement in Australia,
$1,320 of cash collateral for foreign exchange contracts and $534 cash segregated in a special bank accounts for the benefit of
customers related to our broker dealer subsidiary and collateral for one of our telecommunication suppliers. As
of December 31, 2015, restricted cash included $51 of cash segregated in a special reserve bank account for the benefit of customers
related to our broker dealer subsidiary. (k)
Accounts Receivable Accounts
receivable represents amounts due from the Company’s auction and liquidation, valuation and appraisal, capital markets and
principal investments - United Online customers. The Company maintains an allowance for doubtful accounts for estimated losses
inherent in its accounts receivable portfolio. In establishing the required allowance, management utilizes a specific customer
identification methodology. Management also considers historical losses adjusted for current market conditions and the customers’
financial condition and the current receivables aging and current payment patterns. Account balances are charged off against the
allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does
not have any off-balance sheet credit exposure related to its customers. The Company’s bad debt expense totaled $710, $718
and $532 for the years ended December 31, 2016, 2015 and 2014, respectively. These amounts are included as a component of
selling, general and administrative expenses in the accompanying consolidated statement of operations. (l)
Advances Against Customer Contracts Advances
against customer contracts represent advances of contractually reimbursable expenses incurred prior to, and during the term of
the auction and liquidation services contract. These advances are charged to expense in the period that revenue is recognized
under the contract. (m)
Goods Held for Sale or Auction Goods
held for sale or auction are stated at the lower of cost, determined by the specific-identification method, or market. (n)
Securities Owned and Securities Sold Not Yet Purchased Securities
owned consists of marketable securities and investments in partnership interests and other securities recorded at fair value. Securities
sold, but not yet purchased represents obligations of the Company to deliver the specified security at the contracted price and
thereby create a liability to purchase the security in the market at prevailing prices. Changes in the value of these
securities are reflected currently in the results of operations. As
of December 31, 2016 and 2015, the Company’s securities owned and securities sold not yet purchased at fair value consisted
of the following:
December
31, December
31,
2016 2015
Securities
owned
Common
stocks $ 2,084 $ 17,586
Corporate
bonds 1,025 941
Partnership
interests 13,470 7,016
$ 16,579 $ 25,543
Securities
sold not yet purchased
Corporate
bonds $ 846 $ 713 (o)
Property and Equipment Property
and equipment are stated at cost. Depreciation and amortization is computed using the straight-line method over the estimated
useful lives of the assets. Property and equipment held under capital leases are amortized on a straight-line basis over the shorter
of the lease term or estimated useful life of the asset. Property and equipment under capital leases were stated at the present
value of minimum lease payments. (p)
Goodwill and Other Intangible Assets The
Company accounts for goodwill and intangible assets in accordance with the accounting guidance which requires that goodwill and
other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate
that the fair value of an asset has decreased below its carrying value. Goodwill
includes (i) the excess of the purchase price over the fair value of net assets acquired in a business combinations and (ii) an
increase for the subsequent acquisition of noncontrolling interests during the year ended December 31, 2007. The Accounting
Standards Codification (“ASC”) requires that goodwill be tested for impairment at the reporting unit level (operating
segment or one level below an operating segment). Application of the goodwill impairment test requires judgment, including the
identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units,
and determining the fair value. The Company operates four reporting units, which are the same as its reporting segments described
in Note 20. Significant judgment is required to estimate the fair value of reporting units which includes estimating future cash
flows, determining appropriate discount rates and other assumptions. Changes in these estimates and assumptions could materially
affect the determination of fair value and/or goodwill impairment. When
testing goodwill for impairment, the Company may assess qualitative factors for some or all of our reporting units to determine
whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is
less than its carrying amount, including goodwill. Alternatively, the Company may bypass this qualitative assessment for some
or all of our reporting units and perform a detailed quantitative test of impairment (step 1). If the Company performs the detailed
quantitative impairment test and the carrying amount of the reporting unit exceeds its fair value, the Company would perform an
analysis (step 2) to measure such impairment. In 2015, the Company first performed a qualitative assessment to identify and evaluate
events and circumstances to conclude whether it is more likely than not that the fair value of the Company’s reporting units
are less than its carrying amounts. Based on the Company’s qualitative assessments, the Company concluded that a positive
assertion can be made from the qualitative assessment that it is more likely than not that the fair value of the reporting units
exceeded their carrying values and no impairments were identified. The
Company reviews the carrying value of its amortizable intangibles and other long-lived assets for impairment at least annually
or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability
of long-lived assets is measured by comparing the carrying amount of the asset or asset group to the undiscounted cash flows that
the asset or asset group is expected to generate. If the undiscounted cash flows of such assets are less than the carrying amount,
the impairment to be recognized is measured by the amount by which the carrying amount of the asset or asset group, if any, exceeds
its fair market value. No impairment was deemed to exist as of December 31, 2016. (q)
Fair Value Measurements The
Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment
and considers factors specific to the asset or liability. Fair value is the price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement
assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability
or, in the absence of a principal market, the most advantageous market. The Company also records mandatorily redeemable noncontrolling
interests that were issued after November 5, 2003 at fair value with fair value determined in accordance with the ASC. The
following tables below presents information about the Company’s securities owned, mandatorily redeemable noncontrolling
interests and securities sold not yet purchased that are measured at fair value on a recurring basis as of December 31, 2016 and
December 31, 2015 which are categorized using the three levels of fair value hierarchy. In general, fair values determined
by Level 1 inputs utilize quoted prices (unadjusted) for identical instruments that are highly liquid, observable and actively
traded in over-the-counter markets. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included
in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include 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 and can be corroborated by market data. Level 3 inputs are unobservable inputs
that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In
certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases,
the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based
on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of
the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors
specific to the asset or liability. The
following tables present information on the financial assets and liabilities measured and recorded at fair value on a recurring
basis as of December 31, 2016 and 2015.
Financial
Assets Measured at Fair Value on a
Recurring
Basis at December 31, 2016, Using
Quoted
prices in Other Significant
Fair
Value at active
markets for observable unobservable
December
31, identical
assets inputs inputs
2016 (Level
1) (Level
2) (Level
3)
Assets:
Securities owned
Common
stocks $ 2,084 $ 1,785 $ - $ 299
Corporate
bonds 1,025 - 865 160
Partnership
interests 13,470 - 44 13,426
Total
assets measured at fair value $ 16,579 $ 1,785 $ 909 $ 13,885
Liabilities:
Securities sold not
yet purchased
Corporate
bonds $ 846 $ - $ 846 $ -
Mandatorily
redeemable noncontrolling interests issued after November 5, 2003 $ 3,214 - - 3,214
Contingent
consideration 1,242 - - 1,242
Total
liabilities measured at fair value $ 5,302 $ - $ 846 $ 4,456
Financial
Assets Measured at Fair Value on a
Recurring
Basis at December 31, 2015, Using
Quoted
prices in Other Significant
Fair
Value at active
markets for observable unobservable
December
31, identical
assets inputs inputs
2015 (Level
1) (Level
2) (Level
3)
Assets:
Securities
owned
Common
stocks $ 17,586 $ 17,296 $ - $ 290
Corporate
bonds 941 - 941 -
Partnership
interests 7,016 - 5,250 1,766
Total
assets measured at fair value $ 25,543 $ 17,296 $ 6,191 $ 2,056
Liabilities:
Securities
sold not yet purchased Corporate bonds $ 713 $ - $ 713 $ -
Mandatorily
redeemable noncontrolling interests issued after November 5, 2003 2,330 - - 2,330
Contingent
consideration 2,391 - - 2,391
Total
liabilities measured at fair value $ 5,434 $ - $ 713 $ 4,721 The
Company determined the fair value of mandatorily redeemable noncontrolling interests described above based on the issuance of
similar interests for cash, references to industry comparables, and relied, in part, on information obtained from appraisal reports
and internal valuation models. The changes in Level 3 fair value hierarchy during the year ended December 31, 2016 and 2015 is
as follows:
Level
3 Level
3 Changes During the Year Level
3
Balance
at Fair Relating
to Purchases, Transfer
in Balance
at
Beginning
of Value Undistributed Sales
and and/or
out End
of
Period Adjustments Earnings Settlements of
Level 3 Period
Year
Ended December 31, 2016
Common
stocks $ 290 $ - $ - $ 9 $ - $ 299
Corporate bonds $ - $ - $ - $ 160 $ - $ 160
Partnership interests $ 1,766 $ 2,294 $ 1,366 $ 8,000 $ $ 13,426
Mandatorily
redeemable noncontrolling interests issued after November 5, 2003 $ 2,330 $ 800 $ 84 $ $ $ 3,214
Contingent consideration $ 2,391 $ 101 $ $ (1,250 ) $ $ 1,242
Year
Ended December 31, 2015
Common stocks $ 319 $ - $ - $ (29 ) $ - $ 290
Partnership interests $ - $ 79 $ - $ 1,687 $ - $ 1,766
Mandatorily
redeemable noncontrolling interests issued after November 5, 2003 $ 2,285 $ - $ 45 $ - $ - $ 2,330
Contingent consideration $ - $ 2,391 $ - $ - $ - $ 2,391 The
amount reported in the table above for the years ended December 31, 2016 and December 31, 2015 includes the amount of undistributed
earnings attributable to the noncontrolling interests that is distributed on a quarterly basis. The fair value adjustment for
contingent consideration during the year ended December 31, 2015 in the table above of $2,391 includes the initial value of contingent
consideration of $2,229 and an adjustment for imputed interest of $162. The
carrying amounts reported in the consolidated financial statements for cash, restricted cash, accounts receivable approximate
fair value based on the short-term maturity of these instruments. The carrying amounts of the notes payable (including credit
lines used to finance liquidation engagements) and long-term debt approximate fair value because the contractual interest rates
or effective yields of such instruments are consistent with current market rates of interest for instruments of comparable credit
risk. (r)
Derivative and Foreign Currency Translation The
Company periodically uses derivative instruments, which primarily consist of the purchase of forward exchange contracts, for certain
auction and liquidation engagements with operations outside the United States. During the year ended December 31, 2016, the Company’s
use of derivatives consisted of the purchase of forward exchange contracts (a) in the amount of $10,200 Canadian dollars that
was settled at various periods prior to August 31, 2016, (b) 5,600 Euro’s that was settled on December 30, 2016 and (c)
$20,000 Australian dollars that was settled on December 30, 2016 and another $25,000 Australian dollars that was settled on January
31, 2017. During the year ended December 31, 2015, the Company’s use of derivatives consists of forward exchange contract
a |
