Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 23, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Period End Date | Mar. 31, 2021 | |
Trading Symbol | WETF | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | WisdomTree Investments, Inc. | |
Entity Central Index Key | 0000880631 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 149,591,742 | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-10932 | |
Entity Address, Address Line One | 245 Park Avenue, 35th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10167 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3487784 | |
City Area Code | 212 | |
Local Phone Number | 801-2080 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2031 | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | |||
Cash and cash equivalents | $ 62,302 | $ 73,425 | |
Securities owned, at fair value (including $23,626 and $23,932 invested in WisdomTree ETFs at March 31, 2021 and December 31, 2020, respectively) | 34,771 | 34,895 | |
Accounts receivable (including $27,258 and $26,884 due from related parties at March 31, 2021 and December 31, 2020, respectively) | 30,341 | 29,455 | |
Income taxes receivable | 126 | ||
Prepaid expenses | 4,187 | 3,827 | |
Other current assets | 237 | 259 | |
Total current assets | 131,964 | 141,861 | |
Fixed assets, net | 7,432 | 7,579 | |
Indemnification receivable (Note 19) | 22,222 | 27,016 | |
Securities held-to-maturity | 411 | 451 | |
Deferred tax assets, net | 6,215 | 8,063 | |
Investments (Note 7) | 13,849 | 8,112 | |
Right of use assets – operating leases (Note 12) | 15,841 | 16,327 | |
Goodwill (Note 21) | 85,856 | 85,856 | |
Intangible assets (Note 21) | 601,247 | 601,247 | |
Other noncurrent assets | 180 | 180 | |
Total assets | 885,217 | 896,692 | |
Current liabilities: | |||
Fund management and administration payable | 17,980 | 19,564 | |
Compensation and benefits payable | 8,568 | 22,803 | |
Deferred consideration – gold payments (Note 9) | 15,637 | 17,374 | |
Operating lease liabilities (Note 12) | 2,958 | 3,135 | |
Income taxes payable | 916 | ||
Accounts payable and other liabilities | 11,415 | 10,207 | |
Total current liabilities | 56,558 | 73,999 | |
Convertible notes (Note 10) | 171,163 | 166,646 | |
Deferred consideration – gold payments (Note 9) | 211,509 | 212,763 | |
Operating lease liabilities (Note 12) | 17,012 | 17,434 | |
Other noncurrent liabilities (Note 19) | 22,222 | 27,016 | |
Total liabilities | 478,464 | 497,858 | |
Preferred stock – Series A Non-Voting Convertible, par value $0.01; 14.750 shares authorized, issued and outstanding; redemption value of $88,642 and $72,667 at March 31, 2021 and December 31, 2020, respectively) (Note 11) | 132,569 | 132,569 | |
Contingencies (Note 13) | |||
Stockholders' equity | |||
Preferred stock, par value $0.01; 2,000 shares authorized: | |||
Common stock, par value $0.01; 250,000 shares authorized; issued and outstanding: 149,811 and 148,716 at March 31, 2021 and December 31, 2020, respectively | 1,498 | 1,487 | |
Additional paid-in capital | 314,274 | 317,075 | |
Accumulated other comprehensive income | 985 | 1,102 | |
Accumulated deficit | (42,573) | (53,399) | |
Total stockholders' equity | 274,184 | 266,265 | |
Total liabilities and stockholders' equity | $ 885,217 | $ 896,692 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 149,811,000 | 148,716,000 |
Common stock, shares outstanding | 149,811,000 | 148,716,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Accounts receivable from related parties | $ 27,258 | $ 26,884 |
Securities owned, at fair value | 34,771 | 34,895 |
Preferred Stock Redemption Value | $ 88,642 | $ 72,667 |
Series A Redeemable Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 14,750 | 14,750 |
Preferred stock, shares issued | 14,750 | 14,750 |
Preferred stock, shares outstanding | 14,750 | 14,750 |
WisdomTree ETF [Member] | ||
Securities owned, at fair value | $ 23,626 | $ 23,932 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Operating Revenues: | |||
Total revenues | $ 72,830 | $ 63,874 | |
Operating Expenses: | |||
Compensation and benefits | 22,627 | 17,295 | |
Fund management and administration | 15,521 | 14,485 | |
Marketing and advertising | 3,006 | 2,468 | |
Sales and business development | 2,145 | 3,417 | |
Contractual gold payments (Note 9) | 4,270 | 3,760 | |
Professional fees | 2,013 | 1,273 | |
Occupancy, communications and equipment | 1,475 | 1,551 | |
Depreciation and amortization | 252 | 256 | |
Third-party distribution fees | 1,343 | 1,355 | |
Acquisition and disposition-related costs | 383 | ||
Other | 1,571 | 1,997 | |
Total operating expenses | 54,223 | 48,240 | |
Operating income | 18,607 | 15,634 | |
Other Income/(Expenses): | |||
Interest expense | (2,296) | (2,419) | |
Gain/(loss) on revaluation of deferred consideration – gold payments (Note 9) | 2,832 | (2,208) | |
Interest income | 231 | 163 | |
Impairments (Notes 12 and 22) | (303) | (19,672) | |
Other losses, net | (5,893) | (2,507) | |
Income/(loss) before income taxes | 13,178 | (11,009) | |
Income tax benefit | (1,969) | (2,371) | |
Net income/(loss) | $ 15,147 | $ (8,638) | |
Earnings/(loss) per share – basic (Note 18) | $ 0.09 | $ (0.06) | |
Earnings/(loss) per share – diluted (Note 18) | $ 0.09 | $ (0.06) | |
Weighted-average common shares – basic (Note 18) | 145,649 | 152,519 | |
Weighted-average common shares – diluted (Note 18) | [1] | 161,831 | 152,519 |
Cash dividends declared per common share | $ 0.03 | $ 0.03 | |
Advisory Fees [Member] | |||
Operating Revenues: | |||
Total revenues | $ 71,616 | $ 62,950 | |
Other Income [Member] | |||
Operating Revenues: | |||
Total revenues | $ 1,214 | $ 924 | |
[1] | Excludes 15,025 participating securities and 16 potentially dilutive non-participating common stock equivalents for the three months ended March 31, 2020 as the Company reported a net loss for the period (shares herein are reported in thousands). |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income/(Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net income/(loss) | $ 15,147 | $ (8,638) |
Other comprehensive loss | ||
Foreign currency translation adjustment, net of income taxes | (117) | (686) |
Other comprehensive loss | (117) | (853) |
Comprehensive income/(loss) | $ 15,030 | (9,491) |
WisdomTree Asset Management Canada, Inc [Member] | ||
Other comprehensive loss | ||
Reclassification of foreign currency translation adjustment to other losses, net, upon the sale of WisdomTree Asset Management Canada, Inc. ("WTAMC" or "Canadian ETF business") (Note 22) | $ (167) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | As Adjusted [Member] | Common Stock [Member] | Common Stock [Member]As Adjusted [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member]As Adjusted [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Other Comprehensive Income [Member]As Adjusted [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member]As Adjusted [Member] |
Balance at Dec. 31, 2019 | $ 337,412 | $ 1,553 | $ 352,658 | $ 945 | $ (17,744) | |||||
Balance, shares at Dec. 31, 2019 | 155,264,000 | |||||||||
Restricted stock issued and vesting of restricted stock units, net | $ 14 | (14) | ||||||||
Restricted stock issued and vesting of restricted stock units net, shares | 1,438,000 | |||||||||
Shares repurchased | (1,495) | $ (3) | (1,492) | |||||||
Shares repurchased, shares | (385,000) | |||||||||
Exercise of stock options, net | 240 | 240 | ||||||||
Exercise of stock options net, shares | 107,000 | |||||||||
Stock-based compensation | 3,239 | 3,239 | ||||||||
Other comprehensive loss | (853) | (853) | ||||||||
Dividends | (5,136) | (5,136) | ||||||||
Net income | (8,638) | (8,638) | ||||||||
Balance at Mar. 31, 2020 | 324,769 | $ 1,564 | 349,495 | 92 | (26,382) | |||||
Balance, shares at Mar. 31, 2020 | 156,424,000 | |||||||||
Balance at Dec. 31, 2020 | $ 266,265 | $ 263,199 | $ 1,487 | $ 1,487 | 317,075 | $ 313,393 | 1,102 | $ 1,102 | (53,399) | $ (52,783) |
Balance, shares at Dec. 31, 2020 | 148,716,000 | 148,716,000 | 148,716,000 | |||||||
Reclassification of equity component related to convertible notes, net of deferred taxes of $1,022, upon the implementation of ASU 2020-06 (Note 10) | $ (3,066) | (3,682) | 616 | |||||||
Restricted stock issued and vesting of restricted stock units, net | $ 15 | (15) | ||||||||
Restricted stock issued and vesting of restricted stock units net, shares | 1,510,000 | |||||||||
Shares repurchased | (2,630) | $ (5) | (2,625) | |||||||
Shares repurchased, shares | (490,000) | |||||||||
Exercise of stock options, net | 379 | $ 1 | 378 | |||||||
Exercise of stock options net, shares | 75,000 | |||||||||
Stock-based compensation | 3,143 | 3,143 | ||||||||
Other comprehensive loss | (117) | (117) | ||||||||
Dividends | (4,937) | (4,937) | ||||||||
Net income | 15,147 | 15,147 | ||||||||
Balance at Mar. 31, 2021 | $ 274,184 | $ 1,498 | $ 314,274 | $ 985 | $ (42,573) | |||||
Balance, shares at Mar. 31, 2021 | 149,811,000 | 149,811,000 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) $ in Thousands | Mar. 31, 2021USD ($) |
Accounting Standards Update 2020 06 | |
Deferred tax liability | $ 1,022 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income/(loss) | $ 15,147 | $ (8,638) |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||
Advisory fees received in gold, other precious metals and bitcoin | (19,757) | (13,860) |
Contractual gold payments | 4,270 | 3,760 |
Stock-based compensation | 3,143 | 3,239 |
Deferred income taxes | 2,904 | 4,526 |
(Gain)/loss on revaluation of deferred consideration – gold payments | (2,832) | 2,208 |
Amortization of right of use asset | 697 | 798 |
Amortization of issuance costs – convertible notes | 429 | |
Impairments | 303 | 19,672 |
Depreciation and amortization | 252 | 256 |
Gain on sale – Canadian ETF business | (2,877) | |
Amortization of issuance costs - former credit facility | 723 | |
Other | (235) | (31) |
Changes in operating assets and liabilities: | ||
Securities owned, at fair value | 124 | (2,942) |
Accounts receivable | 290 | 5,850 |
Prepaid expenses | (362) | (616) |
Gold, other precious metals and bitcoin | 14,166 | 9,838 |
Other assets | 5 | 139 |
Fund management and administration payable | (1,470) | 537 |
Compensation and benefits payable | (14,245) | (22,688) |
Income taxes receivable/payable | (1,028) | (2,032) |
Securities sold, but not yet purchased, at fair value | (112) | |
Operating lease liabilities | (918) | (926) |
Accounts payable and other liabilities | 982 | 542 |
Net cash provided by/(used in) operating activities | 1,865 | (2,634) |
Cash flows from investing activities: | ||
Purchase of investments | (5,500) | |
Purchase of fixed assets | (103) | (50) |
Proceeds from held-to-maturity securities maturing or called prior to maturity | 38 | 6,030 |
Proceeds from sale of Canadian ETF business, net | 2,774 | |
Net cash (used in)/provided by investing activities | (5,565) | 8,754 |
Cash flows from financing activities: | ||
Dividends paid | (4,937) | (5,136) |
Shares repurchased | (2,630) | (1,495) |
Repayment of debt | (5,000) | |
Proceeds from exercise of stock options | 379 | 240 |
Net cash used in financing activities | (7,188) | (11,391) |
Decrease in cash flow due to changes in foreign exchange rate | (235) | (1,272) |
Decrease in cash and cash equivalents | (11,123) | (6,543) |
Cash and cash equivalents—beginning of year | 73,425 | 74,972 |
Cash and cash equivalents—end of period | 62,302 | 68,429 |
Supplemental disclosure of cash flow information: | ||
Cash paid for taxes | $ 1,278 | 1,147 |
Cash paid for interest | $ 2,312 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - Implementation of ASU 2020-06 [Member] $ in Thousands | Jan. 01, 2021USD ($) |
Increase decrease in retained earnings | $ 616 |
Increase decrease in convertible notes | 4,088 |
Increase decrease in additional paid in capital | 3,682 |
Increase decrease in deferred tax liability | $ 1,022 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business WisdomTree Investments, Inc., through its global subsidiaries (collectively, “WisdomTree” or the “Company”), is an exchange traded product (“ETP”) sponsor and asset manager headquartered in New York. WisdomTree offers ETPs covering equity, commodity, fixed income, leveraged-and-inverse, • WisdomTree Asset Management, Inc. non-consolidated open-end • WisdomTree Management Jersey Limited leveraged-and-inverse • WisdomTree Multi Asset Management Limited non-consolidated • WisdomTree Management Limited non-consolidated • WisdomTree UK Limited • WisdomTree Europe Limited e • WisdomTree Ireland Limited • WisdomTree Commodity Services, LLC |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation These consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and in the opinion of management reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of financial condition, results of operations, and cash flows for the periods presented. The consolidated financial statements include the accounts of the Company’s wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Consolidation The Company consolidates entities in which it has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity (“VOE”) or a variable interest entity (“VIE”). The usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. If the Company has a majority voting interest in a VOE, the entity is consolidated. The Company has a controlling financial interest in a VIE when the Company has a variable interest that provides it with (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company reassesses its evaluation of whether an entity is a VIE when certain reconsideration events occur. Accounts Receivable Accounts receivable are customer and other obligations due under normal trade terms. The Company measures credit losses, if any, by applying historical loss rates, adjusted for current conditions and reasonable and supportable forecasts to amounts outstanding using the aging method. Impairment of Long-Lived Assets The Company performs a review for the impairment of long-lived assets when events or changes in circumstances indicate that the estimated undiscounted future cash flows expected to be generated by the assets are less than their carrying amounts or when other events occur which may indicate that the carrying amount of an asset may not be recoverable. Securities Owned and Securities Sold, but not yet Purchased (at fair value) Securities owned and securities sold, but not yet purchased are securities classified as either trading or available-for-sale (“AFS”). These securities are recorded on their trade date and are measured at fair value. All equity securities are classified by the Company as trading. Debt securities are classified based primarily on the Company’s intent to hold or sell the security. Changes in the fair value of debt securities classified as trading and AFS are reported in other income and other comprehensive income, respectively, in the period the change occurs. Debt securities classified as AFS are assessed for impairment on a quarterly basis and an estimate for credit loss is provided when the fair value of the AFS debt security is below its amortized cost basis. Credit-related impairments are recognized in earnings with a corresponding adjustment to the security’s amortized cost basis if the Company intends to sell the impaired AFS debt security or it is more likely than not the Company will be required to sell the security before recovering its amortized cost basis. Other credit-related impairments are recognized as an allowance with a corresponding adjustment to earnings. Impairments resulting from noncredit-related factors are recognized in other comprehensive income. Amounts recorded in other comprehensive income are reclassified into earnings upon sale of the AFS debt security using the specific identification method. Securities Held-to-Maturity The Company accounts for certain of its securities as held-to-maturity held-to-maturity more-likely-than-not Held-to-maturity non-accrual held-to-maturity non-accrual The Company reviews its portfolio of held-to-maturity Investments in pass-through government-sponsored enterprises (“GSEs”) are determined to have an estimated loss rate of zero due to an implicit U.S. government guarantee. Investments The Company accounts for equity investments that do not have a readily determinable fair value under the measurement alternative prescribed within Accounting Standards Update (“ASU”) 2016-01, Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities Goodwill Goodwill is the excess of the purchase price over the fair values of the identifiable net assets at the acquisition date. The Company tests goodwill for impairment at least annually and at the time of a triggering event requiring re-evaluation, Goodwill is allocated to the Company’s U.S. Business and European Business components. For impairment testing purposes, these components are aggregated as a single reporting unit as they fall under the same operating segment and have similar economic characteristics. Goodwill is assessed for impairment annually on November 30 th Intangible Assets Indefinite-lived intangible assets are tested for impairment at least annually and are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets are impaired if their estimated fair values are less than their carrying values. Finite-lived intangible assets, if any, are amortized over their estimated useful life, which is the period over which the assets are expected to contribute directly or indirectly to the future cash flows of the Company. These intangible assets are tested for impairment at the time of a triggering event, if one were to occur. Finite-lived intangible assets may be impaired when the estimated undiscounted future cash flows generated from the assets are less than their carrying amounts. The Company may rely on a qualitative assessment when performing its intangible asset impairment test. Otherwise, the impairment evaluation is performed at the lowest level of reasonably identifiable cash flows independent of other assets. The annual impairment testing date for all of the Company’s intangible assets is November 30 th Leases The Company accounts for its lease obligations in accordance with Accounting Standards Codification (“ASC”) Topic 842, Leases right-of-use right-of-use ASC 842 also provides a practical expedient which allows for consideration in a contract to be accounted for as a single lease component rather than allocated between lease and non-lease Deferred Consideration – Gold Payments Deferred consideration represents the present value of an obligation to pay gold to a third party into perpetuity and is measured using forward-looking gold prices observed on the CMX exchange, a selected discount rate and perpetual growth rate (Note 9). Changes in the fair value of this obligation are reported as gain/(loss) on revaluation of deferred consideration – gold payments on the Company’s Consolidated Statements of Operations. Convertible Notes Convertible notes are carried at amortized cost, net of issuance costs. Effective January 1, 2021, the Company early adopted ASU 2020-06 Debt – Debt with Conversion and Other Options 2020-06 paid-in Contingencies The Company may be subject to reviews, inspections and investigations by regulatory authorities as well as legal proceedings arising in the ordinary course of business. The Company evaluates the likelihood of an unfavorable outcome of all legal or regulatory proceedings to which it is a party and accrues a loss contingency when the loss is probable and reasonably estimable. Contingent Payments The Company recognizes contingent payments when the contingency is resolved and the gain is realized. Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Net income available to common stockholders represents net income of the Company reduced by an allocation of earnings to participating securities. The Series A non-voting non-forfeitable two-class Diluted EPS is calculated under the treasury stock method and the two-class non-voting non-voting m if-converted Income Taxes The Company accounts for income taxes using the liability method, which requires the determination of deferred tax assets and liabilities based on the differences between the financial and tax bases of assets and liabilities using the enacted tax rates in effect for the year in which differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more-likely-than-not Tax positions are evaluated utilizing a two-step more-likely-than-not The Global Intangible Low-Taxed Non-income Recently Adopted Accounting Pronouncements On January 1, 202 1 2020-06, Debt – Debt with Conversion and Other Options 2020-06) earnings-per-share ASU, paid-in capital On January 1, 2021, the Company adopted ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes 2019-12). year-to-date t non-income-based |
Cash and Cash Equivalents
Cash and Cash Equivalents | 3 Months Ended |
Mar. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 3. Cash and Cash Equivalents Of the total cash and cash equivalents of $62,302 and $73,425 at March 31, 2021 and December 31, 2020, respectively, $59,919 and $70,911 were held at two financial institutions. At March 31, 2021 and December 31, 2020, cash equivalents were approximately $502 and $660, respectively. Certain of the Company’s international subsidiaries are required to maintain a minimum level of regulatory capital, which was $12,222 In addition, the Company collateralized its U.S. office lease through a standby letter of credit totaling $1,384 which is restricted from further use. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 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 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 months ended March 31, 2021 and 2020 there were no transfers between Levels 2 and 3. March 31, 2021 Total Level 1 Level 2 Level 3 Assets: Recurring fair value measurements: Cash equivalents $ 502 $ 502 $ — $ — Securities owned, at fair value ETFs 23,862 23,862 — — Pass-through GSEs 8,832 — 8,832 — Corporate bonds 2,077 — 2,077 — Total $ 35,273 $ 24,364 $ 10,909 $ — Non-recurring Securrency, Inc. – Series A convertible preferred stock (1) $ 8,349 $ — $ — $ 8,349 Liabilities: Recurring fair value measurements: Deferred consideration (Note 9) $ 227,146 $ — $ — $ 227,146 (1) Fair value determined on March 8, 2021 (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 AdvisorEngine Inc. (“AdvisorEngine”) – Financial interests (1) $ — $ — $ — $ — Thesys Group, Inc. (“Thesys”) – Series Y Preferred Stock (1) — — — — Total $ — $ — $ — $ — Liabilities: Recurring fair value measurements: Deferred consideration (Note 12) $ 230,137 $ — $ — $ 230,137 Non-recurring 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 in which these financial interests were sold (Note 22). Thesys was written down to zero on September 30, 2020. (2) Fair value of $145,847 and $24,344 determined on June 16, 2020 and August 13, 2020, respectively (Note 10). Recurring Fair Value Measurements - Methodology Cash Equivalents (Note 3) g Securities Owned (Note 5) Deferred Consideration (Note 9) The following table presents a reconciliation of beginning and ending balances of recurring fair value measurements classified as Level 3: Three Months Ended March 31, 2021 2020 Deferred consideration (Note 9) Beginning balance $ 230,137 $ 173,024 Net realized losses (1) 4,270 3,760 Net unrealized (gains)/losses (2) (2,832 ) 2,208 Settlements (4,429 ) (3,692 ) Ending balanc e $ 227,146 $ 175,300 (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. |
Securities Owned
Securities Owned | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Securities Owned | 5. Securities Owned These securities consist of the following: March 31, 2021 December 31, Securities Owned Trading securities $ 34,771 $ 34,895 During the three months ended March 31, 2021 and 2020, the Company recognized trading losses of $561 and $196, respectively on securities owned that were still held at the reporting dates. The Company had no AFS debt securities at March 31, 2021 and December 31, 2020. |
Securities Held-to-Maturity
Securities Held-to-Maturity | 3 Months Ended |
Mar. 31, 2021 | |
Text Block [Abstract] | |
Securities Held-to-Maturity | 6. Securities Held-to-Maturity The following table is a summary of the Company’s securities held-to-maturity: March 31, 2021 December 31, 2020 Debt instruments: Pass-through GSEs (amortized cost) $ 411 $ 451 During the three months ended March 31, 2021 and 2020, the Company received proceeds of $38 and $6,030, respectively, from held-to-maturity The following table summarizes unrealized gains, losses, and fair value (classified as Level 2 within the fair value hierarchy) of securities held-to-maturity: March 31, 2021 December 31, 2020 Cost/amortized cost $ 411 $ 451 Gross unrealized gains 20 30 Gross unrealized losses (1 ) (12 ) Fair value $ 430 $ 469 An allowance for credit losses was not provided on the Company’s held-to-maturity The following table sets forth the maturity profile of the securities held-to-maturity; March 31, 2021 December 31, 2020 Due within one year $ — $ — Due one year through five years — — Due five years through ten years — — Due over ten years 411 451 Total $ 411 $ 451 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2021 | |
Schedule of Investments [Abstract] | |
Investments | 7. Investments The following table sets forth the Company’s investments: March 31, 2021 December 31, 2020 Carrying Cost Carrying Cost Securrency, Inc. – Series A convertible preferred stock $ 8,349 $ 8,112 $ 8,112 $ 8,112 Securrency, Inc. – Series B convertible preferred stock 5,500 5,500 — — Total $ 13,849 $ 13,612 $ 8,112 $ 8,112 Securrency, Inc. – Preferred Stock The Company owns approximately 25% (or 20% on a fully-diluted basis) of the capital stock of Securrency, Inc. (“Securrency”), a leading developer of institutional-grade blockchain-based financial and regulatory technology, issued as a result of strategic investments totaling $13,612. In consideration of such investments, the Company received 5,178,488 shares of Series A convertible preferred stock (“Series A Shares”) and 2,004,665 shares of Series B convertible preferred stock (“Series B Shares”). The Series B Shares contain a liquidation preference that is pari passu with shares of Series B-1 i terms non-cumulative B-1 subject to certain regulatory restrictions of certain investors), for the original issue price thereof, plus all declared and unpaid dividends, upon approval by holders of at least of the Series A Shares (at any time on or after December 31, 2029) and The investment is accounted for under the measurement alternative prescribed within ASU 2016-01, in-substance on its Series A Shares, which was re-measured to fair value upon the issuance of Securrency’s Series B Shares. Fair value was determined using the backsolve method, a valuation approach that determines the value of shares for companies with complex capital structures based upon the price paid for shares recently issued. Fair value is allocated across the capital structure using the Black-Scholes option pricing model. The table below presents the inputs used in backsolve valuation approach (classified as Level 3 in the fair value hierarchy): Inputs (Initial Recognition – March 8, 2021) Expected volatility 55 % Time to exit (in years) 5 There was no impairment recognized during the three months ended March 31, 2020 based upon a qualitative assessment. |
Fixed Assets, net
Fixed Assets, net | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets, net | 8. Fixed Assets, net The following table summarizes fixed assets: March 31, 2021 December 31, 2020 Equipment $ 2,959 $ 2,836 Furniture and fixtures 2,225 2,225 Leasehold improvements 11,021 11,012 Less: accumulated depreciation and amortization (8,773 ) (8,494 ) Total $ 7,432 $ 7,579 |
Deferred Consideration
Deferred Consideration | 3 Months Ended |
Mar. 31, 2021 | |
Text Block [Abstract] | |
Deferred Consideration | 9. Deferred Consideration Deferred consideration represents an obligation the Company assumed in connection with its acquisition of the European exchange-traded commodity, currency and leveraged-and-inverse The Contractual Gold Payments are paid from advisory fee income generated by any Company-sponsored financial product backed by physical gold and are subject to adjustment and reduction for declines in advisory fee income generated by such products, with any reduction remaining due and payable until paid in full. ETFS Capital’s recourse is limited to such advisory fee income and it has no recourse back to the Company for any unpaid amounts that exceed advisory fees earned. ETFS Capital ultimately has the right to claw back Gold Bullion Securities Ltd. (a physically backed gold ETP issuer) if the Company fails to remit any amounts due. The Company determined the present value of the deferred consideration of $227,146 and $230,137 at March 31, 2021 and December 31, 2020 using the following assumptions: March 31, 2021 December 31, 2020 Forward-looking gold price (low) – per ounce $ 1,717 $ 1,903 Forward-looking gold price (high) – per ounce $ 3,201 $ 2,662 Forward-looking gold price (weighted average) – per ounce $ 2,136 $ 2,117 Discount rate 9.0 % 9.0 % Perpetual growth rate 1.7 % 0.9 % The forward-looking gold prices at March 31, 2021 were extrapolated from the last observable CMX exchange price (beyond 2026) and the weighted-average price per ounce was derived from the relative present values of the annual payment obligations. The perpetual growth rate was determined based upon the increase in observable forward-looking gold prices through 2026. This obligation is classified as Level 3 as the discount rate and extrapolated forward-looking gold prices are significant unobservable inputs. An increase in spot gold prices, forward-looking gold prices and the perpetual growth rate would result in an increase in deferred consideration, whereas an increase in the discount rate would reduce the fair value. Current amounts payable were $15,637 and $17,374 and long-term amounts payable were $211,509 and $212,763, respectively, at March 31, 2021 and December 31, 2020, respectively. During the three months ended March 31, 2021 and 2020, the Company recognized the following in respect of deferred consideration: Three Months Ended March 31, 2021 2020 Contractual Gold Payments $ 4,270 $ 3,760 Contractual Gold Payments – gold ounces paid 2,375 2,375 Gain/(loss) on revaluation of deferred consideration – gold payments(1) $ 2,832 $ (2,208 ) (1) Gains on revaluation of deferred consideration – gold payments result from a decrease in spot gold prices, a decrease in the forward-looking price of gold, a decrease in the perpetual growth rate and an increase in the discount rate used to compute the present value of the annual payment obligations. Losses on revaluation of deferred consideration – gold payments result from an increase in spot gold prices, an increase in the forward-looking price of gold, an increase in the perpetual growth rate and a decrease in the discount rate used to compute the annual payment obligations. |
Convertible Notes
Convertible Notes | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Convertible Notes | 10. Convertible Notes On June 16, 2020, the $175,000 aggregate principal amount of Convertible Notes outstanding. Key terms of the Convertible Notes are as follows: • Maturity date • Interest rate of 4.25% • Conversion price of $5.92 • Conversion five business day ten consecutive trading day of • Cash settlement of principal amount of • Redemption price of $7 70 th Company provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption, at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding the redemption date. No sinking fund is provided for the Convertible Notes. • Limited investor put rights • Conversion rate increase in certain customary circumstances • Seniority and Security Non-Voting The Indenture contains customary terms and covenants, including that upon certain events of default occurring and continuing, either the Trustee or the holders of not less than 25% in aggregate principal amount of the Convertible Notes outstanding may declare the entire principal amount of all the Convertible Notes to be repurchased, plus any accrued special interest, if any, to be immediately due and payable. The following table provides a summary of the carrying value of the Convertible Notes at March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Principal amount $ 175,000 $ 175,000 Plus: premium on Additional Notes 250 250 Gross proceeds 175,250 175,250 Less: Unamortized discount (1) — (4,207 ) Less: Unamortized issuance costs (1) (4,087 ) (4,397 ) Carrying amount $ 171,163 $ 166,646 Effective interest rate (2) 5.30 % 6.29 % (1) Unamortized discount was 2020-06 2020-06. (2) Includes amortization of the issuance costs allocated to the Convertible Notes and amortization of the premium associated with the Additional Notes. The effective interest rate prior to January 1, 2021 also included amortization of the discount arising from the bifurcation of the conversion option. On January 1, 2021, the Company early adopted ASU 2020-06, Interest expense on the convertible notes during the three months ended March 31, 2021 was $2,296. Interest expense during the three months ended March 31, 2020 of $2,419 was attributable to our former credit facility which was terminated on June 16, 2020. Interest payable of $2,209 and $342 at March 31, 2021 and December 31, 2020 is included in accounts payable and other liabilities on the Consolidated Balance Sheets. The fair value of the Convertible Notes (classified as Level 2 in the fair value hierarchy) was $214,972 at March 31, 2021. The if-converted |
Preferred Shares
Preferred Shares | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Preferred Shares | 11. Preferred Shares On April 10, 2018, the Company filed a Certificate of Designations of Series A Non-Voting as-converted As described in the Certificate of Designations, the Company will not issue, and ETFS Capital does not have the right to require the Company to issue, any shares of common stock upon conversion of the Preferred Shares, if, as a result of such conversion, ETFS Capital (together with certain attribution parties) would beneficially own more than 9.99% of the Company’s outstanding common stock immediately after giving effect to such conversion. In connection with the completion of the ETFS Acquisition, the Company issued 14,750 shares of Series A Non-Voting The following is a summary of the Preferred Share balance: March 31, 2021 December 31, 2020 Issuance of Preferred Shares $ 132,750 $ 132,750 Less: Issuance costs (181 ) (181 ) Preferred Shares – carrying value $ 132,569 $ 132,569 Temporary equity classification is required for redeemable instruments for which redemption triggers are outside of the issuer’s control. ETFS Capital has the right to redeem all the Preferred Shares specified to be converted during the period of time specified in the Certificate of Designations in the event that: (a) the number of shares of the Company’s common stock authorized by its certificate of incorporation is insufficient to permit the Company to convert all of the Preferred Shares requested by ETFS Capital to be converted; or (b) ETFS Capital does not, upon completion of a change of control of the Company, receive the same amount per Preferred Share as it would have received had each outstanding Preferred Share been converted into common stock immediately prior to the change of control. However, the Company will not be obligated to make any such redemption payments to the extent such payments would be a breach of any covenant or obligation the Company owes to any of its secured creditors or is otherwise prohibited by applicable law. Any such redemption will be at a price per Preferred Share equal to the dollar volume-weighted average price for a share of common stock for the 30-trading The carrying amount of the Preferred Shares was not adjusted as it was not probable that the Preferred Shares would become redeemable. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Lessee Disclosure [Abstract] | |
Leases | 12. Leases The Company has entered into operating leases for its corporate headquarters and other office facilities, financial data terminals and equipment. The Company has no finance leases. The following table provides additional information regarding the Company’s leases: Three Months Ended March 31, 2021 2020 Lease cost: Operating lease cost $ 697 $ 798 Short-term lease cost 295 342 Total lease cost $ 992 $ 1,140 Other information: Cash paid for amounts included in the measurement of operating liabilities (operating leases) $ 918 $ 926 Right-of-use n/a n/a Weighted-average remaining lease term (in years) – operating leases 8.9 9.2 Weighted-average discount rate – operating leases 6.3 % 6.3 % None of the Company’s leases include variable payments, residual value guarantees or any restrictions or covenants relating to the Company’s ability to pay dividends or incur additional financing obligations. The Company’s lease of its headquarters, which expires in right-of-use Other leases also include extension, automatic renewal and termination provisions. These provisions were also not reasonably certain of being exercised and were therefore not recognized as part of the right-of-use During the three months ended March 31, 2021, the Company recognized an impairment charge of $303 resulting from the derecognition of a right-of-use asset upon exiting its London office in February 2021, as well as costs incurred to restore the office space to its original condition. The following table discloses future minimum lease payments at March 31, 2021 with respect to the Company’s operating lease liabilities: Remainder of 2021 $ 2,218 2022 2,958 2023 2,958 2024 3,037 2025 3,148 2026 and thereafter 11,456 Total future minimum lease payments (undiscounted) $ 25,775 The following table reconciles the future minimum lease payments at March 31, 2021 (disclosed above) to the operating lease liabilities recognized in the Company’s Consolidated Balance Sheet: Amounts recognized in the Company’s Consolidated Balance Sheet Lease liability – short term $ 2,958 Lease liability – long term 17,012 Subtotal 19,970 Difference between undiscounted and discounted cash flows 5,805 Total future minimum lease payments (undiscounted) $ 25,775 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 13. Contingencies The Company may be subject to reviews, inspections and investigations by regulatory authorities as well as legal proceedings arising in the ordinary course of business. Closure of the WisdomTree WTI Crude Oil 3x Daily Leveraged ETP In December 2020, WMAI, WTMAML, WTUK and WisdomTree Ireland Limited were served with a writ of summons to appear before the Court of Milan, Italy, and in January 2021, WTUK was served with a writ of summons to appear before the Court of Udine, Italy. Investors had filed actions seeking approximately €9,000 ($10,565), in the aggregate, resulting from the closure of the WisdomTree WTI Crude Oil 3x Daily Leveraged ETP (“3OIL”) in March 2020. The product was dependent on the receipt of payments from a swap provider to satisfy payment obligations to the investors. Due to an extreme adverse move in oil futures relative to the oil futures’ closing price, the swap contract underlying 3OIL was terminated by the swap provider, which resulted in the compulsory redemption of 3OIL, all in accordance with the prospectus. The Company is currently assessing these claims and an accrual has not been made with respect to these matters at March 31, 2021 and December 31, 2020. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2021 | |
Variable Interest Entities | 14. Variable Interest Entities VIEs are entities with any of the following characteristics: (i) the entity does not have enough equity to finance its activities without additional financial support; (ii) the equity holders, as a group, lack the characteristics of a controlling financial interest; or (iii) the entity is structured with non-substantive Consolidation of a VIE is required for the party deemed to be the primary beneficiary, if any. The primary beneficiary is the party who has both (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. The Company is not the primary beneficiary of the entity in which it has a variable interest as it does not have the power to direct the activities that most significantly impact the entity’s economic performance. Such power is conveyed through the entity’s board of directors and the Company does not have control over the board. The following table presents information about the Company’s variable interests in non-consolidated March 31, 2021 December 31, 2020 Carrying Amount – Assets (Securrency) Preferred stock – Series A Shares $ 8,349 $ 8,112 Preferred stock – Series B Shares 5,500 — Total (Note 7) $ 13,849 $ 8,112 Maximum exposure to loss $ 13,849 $ 8,112 |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | 15. Revenues from Contracts with Customers The following table presents the Company’s total revenues from contracts with customers: Three Months Ended March 31, 2021 March 31, 2020 Revenues from contracts with customers: Advisory fees $ 71,616 $ 62,950 Other 1,214 924 Total operating revenues $ 72,830 $ 63,874 The Company recognizes revenues from contracts with customers when the performance obligation is satisfied, which is when the promised goods or services are transferred to the customer. A good or service is considered to be transferred when the customer obtains control, which is represented by the transfer of rights with regard to the good or service. Transfer of control happens either over time or at a point in time. When a performance obligation is satisfied over time, an entity is required to select a single method of measuring progress for each performance obligation that depicts the entity’s performance in transferring control of goods or services to the customer. Substantially all the Company’s revenues from contracts with customers are derived primarily from investment advisory agreements with related parties (Note 16). These advisory fees are recognized over time, are earned from the Company’s ETPs and are calculated based on a percentage of the ETPs’ average daily net assets. There is no significant judgment in calculating amounts due which are invoiced monthly in arrears and are not subject to any potential reversal. Progress is measured using the practical expedient under the output method resulting in the recognition of revenue in the amount for which the Company has a right to invoice. There are no contract assets or liabilities that arise in connection with the recognition of advisory fee revenue. In addition, there are no costs incurred to obtain or fulfill the contracts with customers, all of which are investment advisory agreements with related parties. Geographic Distribution of Revenue The following table presents the Company’s total revenues geographically as determined by where the respective management companies reside: Three Months Ended March 31, 2021 March 31, 2020 Revenues from contracts with customers: United States $ 40,699 $ 39,870 Jersey 29,990 22,525 Ireland 2,141 1,114 Canada (Note 22) — 365 Total operating revenues $ 72,830 $ 63,874 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 16. Related Party Transactions The Company’s revenue s non-distribution The following table summarizes accounts receivable from related parties which are included as a component of accounts receivable on the Company’s Consolidated Balance Sheets: March 31, December 31, Receivable from WTT $ 14,347 $ 13,030 Receivable from ManJer Issuers 11,134 11,693 Receivable from WMAI and WTI 1,777 2,125 Receivable from WTCS — 36 Total $ 27,258 $ 26,884 The allowance for credit losses on accounts receivable from related parties is insignificant when applying historical loss rates, adjusted for current conditions and supportable forecasts, to the amounts outstanding in the table above. Amounts outstanding are all invoiced in arrears, are less than 30 days aged and are collected shortly after the applicable reporting period. The following table summarizes revenues from advisory services provided to related parties: Three Months Ended March 31, March 31, Advisory services provided to WTT $ 40,536 $ 39,601 Advisory services provided to ManJer Issuers 27,045 20,258 Advisory services provided to WMAI and WTI 4,035 2,528 Advisory services provided to WTAMC — 365 Advisory services provided to WTCS — 198 Total $ 71,616 $ 62,950 The Company also has investments in certain WisdomTree ETFs of approximately $23,626 and $23,932 at March 31, 2021 and December 31, 2020, respectively. Losses related to trading WisdomTree ETFs during the three months ended March 31, 2021 and 2020 were $384 and $290, respectively, which are recorded in other losses, net on the Consolidated Statements of Operations. |
Stock-Based Awards
Stock-Based Awards | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Awards | 17. Stock-Based Awards On June 20, 2016, the Company’s stockholders approved a new equity award plan under which the Company can issue up to 10,000,000 shares of common stock (less one share for every share granted under prior plans since March 31, 2016 and inclusive of shares available under the prior plans as of March 31, 2016) in the form of stock options and other stock-based awards. The Company grants equity awards to employees and directors which include restricted stock awards (“RSAs”), restricted stock units (“RSUs”), performance-based restricted stock units (“PRSUs”) and stock options. Certain awards described below are subject to acceleration under certain conditions. Stock options: Generally issued for terms of ten years and may vest after at least one year of service and have an exercise price equal to RSAs/RSUs: Awards are valued based on the Company’s stock price on grant date and generally vest ratably over three years. PRSUs: These awards cliff vest three years from the grant date and contain a market condition whereby the number of PRSUs ultimately vesting is tied to how the Company’s total shareholder return (“TSR”) compares to a peer group of other publicly traded asset managers over the three-year period. A Monte Carlo simulation is used to value these awards. The number of PRSUs vesting ranges from 0% to 200% of the target number of PRSUs granted, as follows: • If the relative TSR is below the 25th percentile, then 0% of the target number of PRSUs granted will vest; • If the relative TSR is at the 25th percentile, then 50% of the target number of PRSUs granted will vest; and • If the relative TSR is above the 25th percentile, then linear scaling is applied such that the percent of the target number of PRSUs vesting is 100% at the 50th percentile and capped at 200% of the target number of PRSUs granted for performance at the 85th percentile (or 100th percentile for grants made during 2019 and 2020). Stock-based compensation expense during A summary of unrecognized stock-based compensation expense and average remaining vesting period is as follows: March 31, 2021 Unrecognized Stock- Average Employees and directors $ 16,488 1.70 A summary of stock-based compensation award activity during the three months ended March 31, 2021 is as follows: Stock RSAs RSUs PRSUs Balance at January 1, 2021 305,000 3,580,743 39,408 341,312 Granted — 1,501,123 29,389 257,043 (1) Exercised/vested (75,000 ) (1,243,763 ) (15,136 ) — Forfeitures (115,000 ) (7,302 ) — — Balance at March 31, 2021 115,000 3,830,801 53,661 598,355 (1) Represents the target number of PRSUs granted and outstanding. The number of PRSUs that ultimately vest ranges from 0% to 200% of this amount. A Monte-Carlo simulation was used to value these awards using the following assumptions for the Company and the peer group: (i) beginning 90-day |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 18. Earnings Per Share The following tables set forth reconciliations of the basic and diluted earnings per share computations for the periods presented: Three Months Ended March 31, 2021 2020 Basic Earnings/(Loss) per Share Net income/(loss) $ 15,147 $ (8,638 ) Less: Income distributed to participating securities (558 ) (555 ) Less: Undistributed income allocable to participating securities (1,152 ) — Net income/(loss) available to common stockholders – Basic EPS $ 13,437 $ (9,193 ) Weighted average common shares (in thousands) 145,649 152,519 Basic earnings/(loss) per share $ 0.09 $ (0.06 ) Three Months Ended March 31, 2021 2020 Diluted Earnings/(Loss) per Share Net income/(loss) available to common stockholders $ 13,437 $ (9,193 ) Add back: Undistributed income allocable to participating securities 1,152 — Less: Reallocation of undistributed income allocable to participating securities considered potentially dilutive (1,152 ) (— ) Net income/(loss) available to common stockholders – Diluted EPS $ 13,437 $ (9,193 ) Weighted Average Diluted Shares (in thousands) Weighted average common shares 145,649 152,519 Dilutive effect of common stock equivalents, excluding participating securities 121 — Weighted average diluted shares, excluding participating securities (in thousands) 145,770 152,519 Diluted earnings/(loss) per share $ 0.09 $ (0.06 ) Diluted earnings/(loss) per share presented above is calculated using the two-class non-participating The following table reconciles weighted average diluted shares as reported on the Company’s Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020, which are determined pursuant to the treasury stock method, to the weighted average diluted shares used to calculate diluted earnings/(loss) per share as disclosed in the table above: Three Months Ended March 31, Reconciliation of Weighted Average Diluted Shares (in thousands) 2021 2020 Weighted average diluted shares as disclosed on the consolidated statements of operations 161,831 152,519 (1) Less: Participating securities: Weighted average shares of common stock issuable upon conversion of the Preferred Shares (Note 11) (14,750 ) — Potentially dilutive restricted stock awards (1,311 ) — Weighted average diluted shares used to calculate diluted earnings/(loss) per share e 145,770 152,519 (1) Excludes 15,025 participating securities and 16 potentially dilutive non-participating |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 19. Income Taxes Effective Income Tax Rate – Three Months Ended March 31, 2021 and March 31, 2020 The Company’s effective income tax rate for the three months ended March 31, 2021 of negative 14.9% resulted in an income tax benefit of $1,969. The Company’s effective income tax rate differs from the federal statutory tax rate of 21% primarily due to a $5,171 reduction in unrecognized tax benefits, a non-taxable The Company’s effective income tax rate for the three months ended March 31, 2020 of 21.5% resulted in an income tax benefit of $2,371. The Company’s effective income tax rate differs from the federal statutory tax rate of 21% primarily due to a $5,981 reduction in unrecognized tax benefits, a $2,877 non-taxable recognized upon the non-deductible Deferred Tax Assets A summary of the components of the Company’s deferred tax assets at March 31, 2021 and December 31, 2020 are as follows: March 31, 2021 December 31, 2020 Deferred tax assets: Capital losses $ 16,596 $ 16,596 Operating lease liabilities 4,851 4,953 Interest carryforwards 2,184 2,235 NOLs – Foreign 2,084 2,167 Goodwill and intangible assets 1,418 1,466 Accrued expenses 1,363 3,507 Stock-based compensation 1,195 1,922 NOLs – U.S. 382 510 Outside basis differences 122 122 Other 263 111 Deferred tax assets 30,458 33,589 Deferred tax liabilities: Right of use assets – operating leases 3,848 3,927 Fixed assets and prepaid assets 1,234 1,261 Foreign currency translation adjustment 262 293 Unremitted earnings – International subsidiaries 97 138 Allocated equity component of convertible notes — 1,022 Deferred tax liabilities 5,441 6,641 Total deferred tax assets less deferred tax liabilities 25,017 26,948 Less: valuation allowance (18,802 ) (18,885 ) Deferred tax assets, net $ 6,215 $ 8,063 Net Operating and Capital Losses – U.S. The Company’s tax effected net operating losses (“NOLs”) at March 31, 2021 were $382 which expire in 2024. The net operating loss carryforwards have been reduced by the impact of annual limitations described in the Internal Revenue Code Section 382 that arose as a result of an ownership change. The Company’s tax effected capital losses were $16,596 at March 31, 2021 and December 31, 2020. These capital losses expire between the years 2023 and 2025. Net Operating Losses – International One of the Company’s European subsidiary’s generated NOLs outside the U.S. These tax effected NOLs, all of which are carried forward indefinitely, were $ and $ at March , and December , , respectively. Valuation Allowance The Company’s valuation allowance has been established on its net capital losses, international net operating losses and outside basis differences as it is more-likely-than-not Uncertain Tax Positions Tax positions are evaluated utilizing a two-step more-likely-than-not In connection with the ETFS Acquisition, the Company accrued a liability for uncertain tax positions and interest and penalties at the acquisition date. The table below sets forth the aggregate changes in the balance of these gross unrecognized tax benefits during the three months ended March 31, 2021: Total Unrecognized Interest and Balance on January 1, 2021 $ 27,016 $ 21,850 $ 5,166 Decrease - Lapse of statute of limitations (1) (5,171 ) (3,559 ) (1,612 ) Increases 39 — 39 Foreign currency translation (2) 338 273 65 Balance at March 31, 2021 $ 22,222 $ 18,564 $ 3,658 (1) Recorded as an income tax benefit of $5,171 during the three months ended March 31, 2021, along with an equal and offsetting amount recorded in other losses, net, to recognize a reduction in the indemnification asset. During the three months ended March 31, 2020, an income tax benefit of $5,981 was recorded along with an equal and offsetting amount in other losses, net. (2) The gross unrecognized tax benefits were accrued in British pounds. The Company also recorded an offsetting indemnification asset provided by ETFS Capital as part of its agreement to indemnify the Company for any potential claims, for which an amount is being held in escrow. ETFS Capital has also agreed to provide additional collateral by maintaining a minimum working capital balance up to a stipulated amount. The gross unrecognized tax benefits and interest and penalties totaling $22,222 at March 31, 2021 are included in other non-current At March 31, 2021, there were $22,222 of unrecognized tax benefits (including interest and penalties) that, if recognized, would impact the effective tax rate. The recognition of any unrecognized tax benefits would result in an equal and offsetting adjustment to the indemnification asset which would be recorded in income before taxes due to the indemnity for any potential claims. Income Tax Examinations The Company is subject to U.S. federal income tax as well as income tax of multiple state, local and certain foreign jurisdictions. The Company’s federal tax return for the year ended December 31, 2016 and ManJer’s tax returns (a Jersey-based subsidiary) for the years ended December 31, 2014 through 2016 are currently under review by the relevant tax authorities. The Company is indemnified by ETFS Capital for any potential exposure associated with ManJer’s tax return under audit. The Company is not currently under audit in any other income tax jurisdictions. As of March 31, 2021, with few exceptions, the Company was no longer subject to income tax examinations by any taxing authority for years before 2016. Undistributed Earnings of Foreign Subsidiaries ASC 740-30 Income Taxes, provides guidance that US companies do not need to recognize tax effects on foreign earnings that are indefinitely reinvested. The Company repatriates earnings of its foreign subsidiaries and therefore has recognized a deferred tax liability of |
Shares Repurchased
Shares Repurchased | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Shares Repurchased | 20. Shares Repurchased On April 24, 2019, the Company’s Board of Directors extended the term of the Company’s share repurchase program for three years through April 27, 2022. Included under this program are purchases to offset future equity grants made under the Company’s equity plans and purchases made in open market or privately negotiated transactions. This authority may be exercised from time to time, subject to regulatory considerations. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions and other corporate liquidity requirements and priorities. The repurchase program may be suspended or terminated at any time without prior notice. Shares repurchased under this program are returned to the status of authorized and unissued on the Company’s books and records. During the three months ended March 31, 2021 and March 31, 2020, the Company repurchased 489,763 shares and 385,399 shares of its common stock, respectively, under this program for an aggregate cost of $2,630 and $1,495, respectively. Shares repurchased under this program were returned to the status of authorized and unissued on the Company’s books and records. As of March 31, 2021, $49,561 remained under this program for future purchases. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 21. Goodwill and Intangible Assets Goodwill The table below sets forth goodwill which is tested annually for impairment on November 30 th Total Balance at January 1, 2021 $ 85,856 Changes — Balance at March 31, 2021 $ 85,856 Goodwill arising from the ETFS Acquisition of $84,057 is not deductible for tax purposes as the acquisition was structured as a stock acquisition occurring in the UK. The remainder of the goodwill is deductible for U.S. tax purposes. Intangible Assets (Indefinite-Lived) The table below sets forth the Company’s intangible assets which are tested annually for impairment on November 30 th Total Balance at January 1, 2021 $ 601,247 Changes — Balance at March 31, 2021 $ 601,247 ETFS In connection with the ETFS Acquisition, which was completed on April 11, 2018, the Company identified intangible assets valued at $601,247 related to the right to manage AUM through customary advisory agreements. The intangible assets were determined to have indefinite useful lives and are not deductible for tax purposes. |
Contingent Payments
Contingent Payments | 3 Months Ended |
Mar. 31, 2021 | |
Contingent Payments [Abstract] | |
Contingent Payments | 22. Contingent Payments The Company recognizes contingent payments when the contingency is resolved and the gain is realized. AdvisorEngine – Sale of Financial Interests On May 4, 2020, the Company closed a transaction to exit its investment in AdvisorEngine. The fair value of upfront consideration paid to the Company was $9,592. Consideration also included contingent payments totaling up to $10,408 which will be payable only upon AdvisorEngine achieving certain revenue milestones during the first through fourth anniversaries of such exit. No value has been ascribed to these contingent payments at March 31, 2021 and December 31, 2020. During the three months ended March 31, 2020, the Company recognized an impairment of $19,672 to adjust the carrying value of its previously held financial interests in AdvisorEngine to fair value. In the following quarter, the Company subsequently recognized a gain of $1,093 arising from an adjustment to the estimate fair value of consideration received. These fair value adjustments were based upon the final sale terms as disclosed above. Sale of Canadian ETF Business On February 19, 2020, the Company completed the sale of all the outstanding shares of WTAMC to CI Financial Corp. The Company received CDN $3,720 (USD $2,774) in cash at closing and will receive additional cash consideration of CDN $2,000 to $8,000, depending on the achievement of certain AUM growth targets over the next three years. The Company recorded CDN $2,000 in other receivables on the Consolidated Statements of Financial Condition at March 31, 2021 and December 31, 2020. In connection with this sale, the Company recognized a gain of $2,877 during the three months ended March 31, 2020 which was recorded in other losses, net on the Consolidated Statements of Operations. This gain represents the difference between the minimum cash consideration payable to the Company and the carrying value of WTAMC’s net assets upon disposition. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 23. Subsequent Events The Company evaluated subsequent events through the date of issuance of the accompanying financial statements. There were no events requiring disclosure. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and in the opinion of management reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of financial condition, results of operations, and cash flows for the periods presented. The consolidated financial statements include the accounts of the Company’s wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Consolidation | Consolidation The Company consolidates entities in which it has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity (“VOE”) or a variable interest entity (“VIE”). The usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. If the Company has a majority voting interest in a VOE, the entity is consolidated. The Company has a controlling financial interest in a VIE when the Company has a variable interest that provides it with (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company reassesses its evaluation of whether an entity is a VIE when certain reconsideration events occur. |
Segment and Geographic Information | Segment and Geographic Information The Company, through its subsidiaries in the U.S. and Europe, conducts business as a single operating segment as an ETP sponsor and asset manager which is based upon the Company’s current organizational and management structure, as well as information used by the chief operating decision maker to allocate resources and other factors. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of subsidiaries whose functional currency is not the U.S. dollar are translated based on the end of period exchange rates from local currency to U.S. dollars. Results of operations are translated at the average exchange rates in effect during the period. The impact of the foreign currency translation adjustment is included in the Consolidated Statements of Comprehensive Income/(Loss) as a component of other comprehensive income/(loss). |
Use of Estimates | Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet dates and the reported amounts of revenues and expenses for the periods presented. Actual results could differ materially from those estimates. |
Revenue Recognition | Revenue Recognition The Company earns substantially all of its revenue in the form of advisory fees from its ETPs and recognizes this revenue over time, as the performance obligation is satisfied. Advisory fees are based on a percentage of the ETPs’ average daily net assets. Progress is measured using the practical expedient under the output method resulting in the recognition of revenue in the amount for which the Company has a right to invoice. |
Contractual Gold Payments | Contractual Gold Payments Contractual gold payments are measured and paid monthly based upon the average daily spot price of gold (Note 9). |
Marketing and Advertising | Marketing and Advertising Marketing and advertising costs, including media advertising and production costs, are expensed when incurred. |
Depreciation and Amortization | Depreciation and Amortization Depreciation is provided for using the straight-line method over the estimated useful lives of the related assets as follows: Equipment 5 years Furniture and fixtures 15 years Leasehold improvements are amortized over the term of their respective leases or service lives of the improvements, whichever is shorter. Fixed assets are recorded at cost less accumulated depreciation and amortization. |
Stock-Based Awards | Stock-Based Awards Accounting for stock-based compensation requires the measurement and recognition of compensation expense for all equity awards based on estimated fair values. Stock-based compensation is measured based on the grant-date fair value of the award and is amortized over the relevant service period. Forfeitures are recognized when they occur. |
Third-Party Distribution Fees | Third-Party Distribution Fees The Company pays a percentage of its advisory fee revenues based on incremental growth in assets under management (“AUM”), subject to caps or minimums, to marketing agents to sell WisdomTree ETFs and for including WisdomTree ETFs on third-party customer platforms and recognizes these expenses as incurred. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be classified as cash equivalents. The Company maintains deposits with financial institutions in an amount that is in excess of federally insured limits. |
Accounts Receivable | Accounts Receivable Accounts receivable are customer and other obligations due under normal trade terms. The Company measures credit losses, if any, by applying historical loss rates, adjusted for current conditions and reasonable and supportable forecasts to amounts outstanding using the aging method. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company performs a review for the impairment of long-lived assets when events or changes in circumstances indicate that the estimated undiscounted future cash flows expected to be generated by the assets are less than their carrying amounts or when other events occur which may indicate that the carrying amount of an asset may not be recoverable. |
Securities Owned and Securities Sold, but not yet Purchased (at fair value) | Securities Owned and Securities Sold, but not yet Purchased (at fair value) Securities owned and securities sold, but not yet purchased are securities classified as either trading or available-for-sale (“AFS”). These securities are recorded on their trade date and are measured at fair value. All equity securities are classified by the Company as trading. Debt securities are classified based primarily on the Company’s intent to hold or sell the security. Changes in the fair value of debt securities classified as trading and AFS are reported in other income and other comprehensive income, respectively, in the period the change occurs. Debt securities classified as AFS are assessed for impairment on a quarterly basis and an estimate for credit loss is provided when the fair value of the AFS debt security is below its amortized cost basis. Credit-related impairments are recognized in earnings with a corresponding adjustment to the security’s amortized cost basis if the Company intends to sell the impaired AFS debt security or it is more likely than not the Company will be required to sell the security before recovering its amortized cost basis. Other credit-related impairments are recognized as an allowance with a corresponding adjustment to earnings. Impairments resulting from noncredit-related factors are recognized in other comprehensive income. Amounts recorded in other comprehensive income are reclassified into earnings upon sale of the AFS debt security using the specific identification method. |
Securities Held-to-Maturity | Securities Held-to-Maturity The Company accounts for certain of its securities as held-to-maturity held-to-maturity more-likely-than-not Held-to-maturity non-accrual held-to-maturity non-accrual The Company reviews its portfolio of held-to-maturity Investments in pass-through government-sponsored enterprises (“GSEs”) are determined to have an estimated loss rate of zero due to an implicit U.S. government guarantee. |
Investments | Investments The Company accounts for equity investments that do not have a readily determinable fair value under the measurement alternative prescribed within Accounting Standards Update (“ASU”) 2016-01, Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities |
Goodwill | Goodwill Goodwill is the excess of the purchase price over the fair values of the identifiable net assets at the acquisition date. The Company tests goodwill for impairment at least annually and at the time of a triggering event requiring re-evaluation, Goodwill is allocated to the Company’s U.S. Business and European Business components. For impairment testing purposes, these components are aggregated as a single reporting unit as they fall under the same operating segment and have similar economic characteristics. Goodwill is assessed for impairment annually on November 30 th |
Intangible Assets | Intangible Assets Indefinite-lived intangible assets are tested for impairment at least annually and are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets are impaired if their estimated fair values are less than their carrying values. Finite-lived intangible assets, if any, are amortized over their estimated useful life, which is the period over which the assets are expected to contribute directly or indirectly to the future cash flows of the Company. These intangible assets are tested for impairment at the time of a triggering event, if one were to occur. Finite-lived intangible assets may be impaired when the estimated undiscounted future cash flows generated from the assets are less than their carrying amounts. The Company may rely on a qualitative assessment when performing its intangible asset impairment test. Otherwise, the impairment evaluation is performed at the lowest level of reasonably identifiable cash flows independent of other assets. The annual impairment testing date for all of the Company’s intangible assets is November 30 th |
Leases | Leases The Company accounts for its lease obligations in accordance with Accounting Standards Codification (“ASC”) Topic 842, Leases right-of-use right-of-use ASC 842 also provides a practical expedient which allows for consideration in a contract to be accounted for as a single lease component rather than allocated between lease and non-lease |
Deferred Consideration - Gold Payments | Deferred Consideration – Gold Payments Deferred consideration represents the present value of an obligation to pay gold to a third party into perpetuity and is measured using forward-looking gold prices observed on the CMX exchange, a selected discount rate and perpetual growth rate (Note 9). Changes in the fair value of this obligation are reported as gain/(loss) on revaluation of deferred consideration – gold payments on the Company’s Consolidated Statements of Operations. |
Convertible Notes | Convertible Notes Convertible notes are carried at amortized cost, net of issuance costs. Effective January 1, 2021, the Company early adopted ASU 2020-06 Debt – Debt with Conversion and Other Options 2020-06 paid-in |
Contingencies | Contingencies The Company may be subject to reviews, inspections and investigations by regulatory authorities as well as legal proceedings arising in the ordinary course of business. The Company evaluates the likelihood of an unfavorable outcome of all legal or regulatory proceedings to which it is a party and accrues a loss contingency when the loss is probable and reasonably estimable. |
Contingent Payments | Contingent Payments The Company recognizes contingent payments when the contingency is resolved and the gain is realized. |
Earnings per Share | Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Net income available to common stockholders represents net income of the Company reduced by an allocation of earnings to participating securities. The Series A non-voting non-forfeitable two-class Diluted EPS is calculated under the treasury stock method and the two-class non-voting non-voting m if-converted |
Income Taxes | Income Taxes The Company accounts for income taxes using the liability method, which requires the determination of deferred tax assets and liabilities based on the differences between the financial and tax bases of assets and liabilities using the enacted tax rates in effect for the year in which differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more-likely-than-not Tax positions are evaluated utilizing a two-step more-likely-than-not The Global Intangible Low-Taxed Non-income |
Recently Adopted Accounted Pronouncements | Recently Adopted Accounting Pronouncements On January 1, 202 1 2020-06, Debt – Debt with Conversion and Other Options 2020-06) earnings-per-share ASU, paid-in capital On January 1, 2021, the Company adopted ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes 2019-12). year-to-date t non-income-based |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Related Assets | Depreciation is provided for using the straight-line method over the estimated useful lives of the related assets as follows: Equipment 5 years Furniture and fixtures 15 years |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Categorization of Assets and Liabilities Measured at Fair Value | The tables below summarize the categorization of the Company’s assets and liabilities measured at fair value. During the three months ended March 31, 2021 and 2020 there were no transfers between Levels 2 and 3. March 31, 2021 Total Level 1 Level 2 Level 3 Assets: Recurring fair value measurements: Cash equivalents $ 502 $ 502 $ — $ — Securities owned, at fair value ETFs 23,862 23,862 — — Pass-through GSEs 8,832 — 8,832 — Corporate bonds 2,077 — 2,077 — Total $ 35,273 $ 24,364 $ 10,909 $ — Non-recurring Securrency, Inc. – Series A convertible preferred stock (1) $ 8,349 $ — $ — $ 8,349 Liabilities: Recurring fair value measurements: Deferred consideration (Note 9) $ 227,146 $ — $ — $ 227,146 (1) Fair value determined on March 8, 2021 (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 AdvisorEngine Inc. (“AdvisorEngine”) – Financial interests (1) $ — $ — $ — $ — Thesys Group, Inc. (“Thesys”) – Series Y Preferred Stock (1) — — — — Total $ — $ — $ — $ — Liabilities: Recurring fair value measurements: Deferred consideration (Note 12) $ 230,137 $ — $ — $ 230,137 Non-recurring 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 in which these financial interests were sold (Note 22). Thesys was written down to zero on September 30, 2020. (2) Fair value of $145,847 and $24,344 determined on June 16, 2020 and August 13, 2020, respectively (Note 10). |
Summary of Reconciliation of Recurring Fair Value Measurements | The following table presents a reconciliation of beginning and ending balances of recurring fair value measurements classified as Level 3: Three Months Ended March 31, 2021 2020 Deferred consideration (Note 9) Beginning balance $ 230,137 $ 173,024 Net realized losses (1) 4,270 3,760 Net unrealized (gains)/losses (2) (2,832 ) 2,208 Settlements (4,429 ) (3,692 ) Ending balanc e $ 227,146 $ 175,300 (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. |
Securities Owned (Tables)
Securities Owned (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Securities Owned | These securities consist of the following: March 31, 2021 December 31, Securities Owned Trading securities $ 34,771 $ 34,895 |
Securities Held-to-Maturity (Ta
Securities Held-to-Maturity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Text Block [Abstract] | |
Schedule of Securities Held-to-Maturity | The following table is a summary of the Company’s securities held-to-maturity: March 31, 2021 December 31, 2020 Debt instruments: Pass-through GSEs (amortized cost) $ 411 $ 451 |
Schedule of Unrealized Gains, Losses and Fair Value of Securities Held-to-Maturity | The following table summarizes unrealized gains, losses, and fair value (classified as Level 2 within the fair value hierarchy) of securities held-to-maturity: March 31, 2021 December 31, 2020 Cost/amortized cost $ 411 $ 451 Gross unrealized gains 20 30 Gross unrealized losses (1 ) (12 ) Fair value $ 430 $ 469 |
Schedule of Maturity Profile of Securities Held-to-Maturity | The following table sets forth the maturity profile of the securities held-to-maturity; March 31, 2021 December 31, 2020 Due within one year $ — $ — Due one year through five years — — Due five years through ten years — — Due over ten years 411 451 Total $ 411 $ 451 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investment [Line Items] | |
Investments | The following table sets forth the Company’s investments: March 31, 2021 December 31, 2020 Carrying Cost Carrying Cost Securrency, Inc. – Series A convertible preferred stock $ 8,349 $ 8,112 $ 8,112 $ 8,112 Securrency, Inc. – Series B convertible preferred stock 5,500 5,500 — — Total $ 13,849 $ 13,612 $ 8,112 $ 8,112 |
Summary of table below presents the inputs used in backsolve valuation approach as follows; | The table below presents the inputs used in backsolve valuation approach (classified as Level 3 in the fair value hierarchy): Inputs (Initial Recognition – March 8, 2021) Expected volatility 55 % Time to exit (in years) 5 |
Fixed Assets, net (Tables)
Fixed Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | The following table summarizes fixed assets: March 31, 2021 December 31, 2020 Equipment $ 2,959 $ 2,836 Furniture and fixtures 2,225 2,225 Leasehold improvements 11,021 11,012 Less: accumulated depreciation and amortization (8,773 ) (8,494 ) Total $ 7,432 $ 7,579 |
Deferred Consideration (Tables)
Deferred Consideration (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Text Block [Abstract] | |
Summary of valuation of deferred consideration | The Company determined the present value of the deferred consideration of $227,146 and $230,137 at March 31, 2021 and December 31, 2020 using the following assumptions: March 31, 2021 December 31, 2020 Forward-looking gold price (low) – per ounce $ 1,717 $ 1,903 Forward-looking gold price (high) – per ounce $ 3,201 $ 2,662 Forward-looking gold price (weighted average) – per ounce $ 2,136 $ 2,117 Discount rate 9.0 % 9.0 % Perpetual growth rate 1.7 % 0.9 % |
Schedule of Deferred Consideration | During the three months ended March 31, 2021 and 2020, the Company recognized the following in respect of deferred consideration: Three Months Ended March 31, 2021 2020 Contractual Gold Payments $ 4,270 $ 3,760 Contractual Gold Payments – gold ounces paid 2,375 2,375 Gain/(loss) on revaluation of deferred consideration – gold payments(1) $ 2,832 $ (2,208 ) (1) Gains on revaluation of deferred consideration – gold payments result from a decrease in spot gold prices, a decrease in the forward-looking price of gold, a decrease in the perpetual growth rate and an increase in the discount rate used to compute the present value of the annual payment obligations. Losses on revaluation of deferred consideration – gold payments result from an increase in spot gold prices, an increase in the forward-looking price of gold, an increase in the perpetual growth rate and a decrease in the discount rate used to compute the annual payment obligations. |
Convertible Notes (Table)
Convertible Notes (Table) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of the carrying value of the convertible notes | The following table provides a summary of the carrying value of the Convertible Notes at March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Principal amount $ 175,000 $ 175,000 Plus: premium on Additional Notes 250 250 Gross proceeds 175,250 175,250 Less: Unamortized discount (1) — (4,207 ) Less: Unamortized issuance costs (1) (4,087 ) (4,397 ) Carrying amount $ 171,163 $ 166,646 Effective interest rate (2) 5.30 % 6.29 % (1) Unamortized discount was 2020-06 2020-06. (2) Includes amortization of the issuance costs allocated to the Convertible Notes and amortization of the premium associated with the Additional Notes. The effective interest rate prior to January 1, 2021 also included amortization of the discount arising from the bifurcation of the conversion option. |
Preferred Shares (Tables)
Preferred Shares (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Summary of Preferred Share Balance | The following is a summary of the Preferred Share balance: March 31, 2021 December 31, 2020 Issuance of Preferred Shares $ 132,750 $ 132,750 Less: Issuance costs (181 ) (181 ) Preferred Shares – carrying value $ 132,569 $ 132,569 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Lessee Disclosure [Abstract] | |
Schedule for Summary of Additional Information Related to Operating Lease | The following table provides additional information regarding the Company’s leases: Three Months Ended March 31, 2021 2020 Lease cost: Operating lease cost $ 697 $ 798 Short-term lease cost 295 342 Total lease cost $ 992 $ 1,140 Other information: Cash paid for amounts included in the measurement of operating liabilities (operating leases) $ 918 $ 926 Right-of-use n/a n/a Weighted-average remaining lease term (in years) – operating leases 8.9 9.2 Weighted-average discount rate – operating leases 6.3 % 6.3 % |
Schedule of Future Minimum Lease Payments | The following table discloses future minimum lease payments at March 31, 2021 with respect to the Company’s operating lease liabilities: Remainder of 2021 $ 2,218 2022 2,958 2023 2,958 2024 3,037 2025 3,148 2026 and thereafter 11,456 Total future minimum lease payments (undiscounted) $ 25,775 |
Schedule for Supplemental Balance Sheet Information Related to Operating Lease | The following table reconciles the future minimum lease payments at March 31, 2021 (disclosed above) to the operating lease liabilities recognized in the Company’s Consolidated Balance Sheet: Amounts recognized in the Company’s Consolidated Balance Sheet Lease liability – short term $ 2,958 Lease liability – long term 17,012 Subtotal 19,970 Difference between undiscounted and discounted cash flows 5,805 Total future minimum lease payments (undiscounted) $ 25,775 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Information about Variable Interests | The following table presents information about the Company’s variable interests in non-consolidated March 31, 2021 December 31, 2020 Carrying Amount – Assets (Securrency) Preferred stock – Series A Shares $ 8,349 $ 8,112 Preferred stock – Series B Shares 5,500 — Total (Note 7) $ 13,849 $ 8,112 Maximum exposure to loss $ 13,849 $ 8,112 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenues from Contracts with Customers | The following table presents the Company’s total revenues from contracts with customers: Three Months Ended March 31, 2021 March 31, 2020 Revenues from contracts with customers: Advisory fees $ 71,616 $ 62,950 Other 1,214 924 Total operating revenues $ 72,830 $ 63,874 |
Summary of Geographic Distribution of Revenue | The following table presents the Company’s total revenues geographically as determined by where the respective management companies reside: Three Months Ended March 31, 2021 March 31, 2020 Revenues from contracts with customers: United States $ 40,699 $ 39,870 Jersey 29,990 22,525 Ireland 2,141 1,114 Canada (Note 22) — 365 Total operating revenues $ 72,830 $ 63,874 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Summary of Accounts Receivable from Related Parties | The following table summarizes accounts receivable from related parties which are included as a component of accounts receivable on the Company’s Consolidated Balance Sheets: March 31, December 31, Receivable from WTT $ 14,347 $ 13,030 Receivable from ManJer Issuers 11,134 11,693 Receivable from WMAI and WTI 1,777 2,125 Receivable from WTCS — 36 Total $ 27,258 $ 26,884 |
Summary of Revenues from Advisory Services Provided to Related Parties | The following table summarizes revenues from advisory services provided to related parties: Three Months Ended March 31, March 31, Advisory services provided to WTT $ 40,536 $ 39,601 Advisory services provided to ManJer Issuers 27,045 20,258 Advisory services provided to WMAI and WTI 4,035 2,528 Advisory services provided to WTAMC — 365 Advisory services provided to WTCS — 198 Total $ 71,616 $ 62,950 |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Unrecognized Stock-Based Compensation Expense and Average Remaining Vesting Period | A summary of unrecognized stock-based compensation expense and average remaining vesting period is as follows: March 31, 2021 Unrecognized Stock- Average Employees and directors $ 16,488 1.70 |
Summary of Stock-Based Compensation Activity | A summary of stock-based compensation award activity during the three months ended March 31, 2021 is as follows: Stock RSAs RSUs PRSUs Balance at January 1, 2021 305,000 3,580,743 39,408 341,312 Granted — 1,501,123 29,389 257,043 (1) Exercised/vested (75,000 ) (1,243,763 ) (15,136 ) — Forfeitures (115,000 ) (7,302 ) — — Balance at March 31, 2021 115,000 3,830,801 53,661 598,355 (1) Represents the target number of PRSUs granted and outstanding. The number of PRSUs that ultimately vest ranges from 0% to 200% of this amount. A Monte-Carlo simulation was used to value these awards using the following assumptions for the Company and the peer group: (i) beginning 90-day |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings Per Share | The following tables set forth reconciliations of the basic and diluted earnings per share computations for the periods presented: Three Months Ended March 31, 2021 2020 Basic Earnings/(Loss) per Share Net income/(loss) $ 15,147 $ (8,638 ) Less: Income distributed to participating securities (558 ) (555 ) Less: Undistributed income allocable to participating securities (1,152 ) — Net income/(loss) available to common stockholders – Basic EPS $ 13,437 $ (9,193 ) Weighted average common shares (in thousands) 145,649 152,519 Basic earnings/(loss) per share $ 0.09 $ (0.06 ) Three Months Ended March 31, 2021 2020 Diluted Earnings/(Loss) per Share Net income/(loss) available to common stockholders $ 13,437 $ (9,193 ) Add back: Undistributed income allocable to participating securities 1,152 — Less: Reallocation of undistributed income allocable to participating securities considered potentially dilutive (1,152 ) (— ) Net income/(loss) available to common stockholders – Diluted EPS $ 13,437 $ (9,193 ) Weighted Average Diluted Shares (in thousands) Weighted average common shares 145,649 152,519 Dilutive effect of common stock equivalents, excluding participating securities 121 — Weighted average diluted shares, excluding participating securities (in thousands) 145,770 152,519 Diluted earnings/(loss) per share $ 0.09 $ (0.06 ) |
Schedule of Weighted Average Number of Shares | The following table reconciles weighted average diluted shares as reported on the Company’s Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020, which are determined pursuant to the treasury stock method, to the weighted average diluted shares used to calculate diluted earnings/(loss) per share as disclosed in the table above: Three Months Ended March 31, Reconciliation of Weighted Average Diluted Shares (in thousands) 2021 2020 Weighted average diluted shares as disclosed on the consolidated statements of operations 161,831 152,519 (1) Less: Participating securities: Weighted average shares of common stock issuable upon conversion of the Preferred Shares (Note 11) (14,750 ) — Potentially dilutive restricted stock awards (1,311 ) — Weighted average diluted shares used to calculate diluted earnings/(loss) per share e 145,770 152,519 (1) Excludes 15,025 participating securities and 16 potentially dilutive non-participating |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of Deferred Tax Asset Recorded | A summary of the components of the Company’s deferred tax assets at March 31, 2021 and December 31, 2020 are as follows: March 31, 2021 December 31, 2020 Deferred tax assets: Capital losses $ 16,596 $ 16,596 Operating lease liabilities 4,851 4,953 Interest carryforwards 2,184 2,235 NOLs – Foreign 2,084 2,167 Goodwill and intangible assets 1,418 1,466 Accrued expenses 1,363 3,507 Stock-based compensation 1,195 1,922 NOLs – U.S. 382 510 Outside basis differences 122 122 Other 263 111 Deferred tax assets 30,458 33,589 Deferred tax liabilities: Right of use assets – operating leases 3,848 3,927 Fixed assets and prepaid assets 1,234 1,261 Foreign currency translation adjustment 262 293 Unremitted earnings – International subsidiaries 97 138 Allocated equity component of convertible notes — 1,022 Deferred tax liabilities 5,441 6,641 Total deferred tax assets less deferred tax liabilities 25,017 26,948 Less: valuation allowance (18,802 ) (18,885 ) Deferred tax assets, net $ 6,215 $ 8,063 |
Schedule of Changes in Balance of Gross Unrecognized Tax Benefits | The table below sets forth the aggregate changes in the balance of these gross unrecognized tax benefits during the three months ended March 31, 2021: Total Unrecognized Interest and Balance on January 1, 2021 $ 27,016 $ 21,850 $ 5,166 Decrease - Lapse of statute of limitations (1) (5,171 ) (3,559 ) (1,612 ) Increases 39 — 39 Foreign currency translation (2) 338 273 65 Balance at March 31, 2021 $ 22,222 $ 18,564 $ 3,658 (1) Recorded as an income tax benefit of $5,171 during the three months ended March 31, 2021, along with an equal and offsetting amount recorded in other losses, net, to recognize a reduction in the indemnification asset. During the three months ended March 31, 2020, an income tax benefit of $5,981 was recorded along with an equal and offsetting amount in other losses, net. (2) The gross unrecognized tax benefits were accrued in British pounds. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | The table below sets forth goodwill which is tested annually for impairment on November 30 th Total Balance at January 1, 2021 $ 85,856 Changes — Balance at March 31, 2021 $ 85,856 |
Summary of Indefinite-lived Intangible Assets | The table below sets forth the Company’s intangible assets which are tested annually for impairment on November 30 th Total Balance at January 1, 2021 $ 601,247 Changes — Balance at March 31, 2021 $ 601,247 |
Significant Accounting Polici_4
Significant Accounting Policies - Schedule of Estimated Useful Lives of Related Assets (Detail) | 3 Months Ended |
Mar. 31, 2021 | |
Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Significant Accounting Polici_5
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2021 | Mar. 31, 2021 |
Cash and cash equivalents maturity period, maximum | 90 days | |
Short-term lease exception - Lease term | 12 months | |
Accounting Standards Update 2020-06 [Member] | ||
Reduction of interest expense per quarter | $ 420 | |
Increase in retained earnings | 616 | |
Increase in carrying value of convertible notes | 4,088 | |
Decrease in additional paid in capital | 3,682 | |
Decrease in deferred tax liability | $ 1,022 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Cash equivalents | $ 502 | $ 660 |
Total cash and cash equivalents | 62,302 | 73,425 |
US Office [Member] | ||
Operating lease, standby letter of credit | 1,384 | 1,384 |
Two Financial Institutions [Member] | ||
Cash and cash equivalents | 59,919 | 70,911 |
International Business Segment [Member] | ||
Minimum level of regulatory net capital | $ 12,222 | $ 10,745 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Liquid investments, original maturities | 90 days |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Categorization of Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 08, 2021 | Dec. 31, 2020 | Aug. 13, 2020 | Jun. 16, 2020 |
Assets: | |||||
Securities owned, at fair value | $ 34,771 | $ 34,895 | |||
Liabilities: | |||||
Deferred consideration (Note 12) | 227,146 | 230,137 | |||
Fair Value, Measurements, Recurring [Member] | |||||
Assets: | |||||
Cash equivalents | 502 | 660 | |||
Total | 35,273 | 35,555 | |||
Liabilities: | |||||
Deferred consideration (Note 12) | 227,146 | 230,137 | |||
Fair Value, Measurements, Recurring [Member] | Exchange Traded Funds [Member] | |||||
Assets: | |||||
Securities owned, at fair value | 23,862 | 24,165 | |||
Fair Value, Measurements, Recurring [Member] | Federal Agency [Member] | |||||
Assets: | |||||
Securities owned, at fair value | 8,832 | 8,613 | |||
Fair Value, Measurements, Recurring [Member] | All Other Corporate Bonds [Member] | |||||
Assets: | |||||
Securities owned, at fair value | 2,077 | 2,117 | |||
Fair Value, Measurements, Nonrecurring [Member] | |||||
Assets: | |||||
AdvisorEngine Inc. – Financial interests | 0 | ||||
Investment owned, at fair value | 0 | ||||
Total | 0 | ||||
Liabilities: | |||||
Convertible notes | 170,191 | $ 24,344 | $ 145,847 | ||
Fair Value, Measurements, Nonrecurring [Member] | Series A convertible preferred stock [Member] | |||||
Assets: | |||||
Investment owned, at fair value | 8,349 | $ 8,349 | |||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Assets: | |||||
Cash equivalents | 502 | 660 | |||
Total | 24,364 | 24,825 | |||
Liabilities: | |||||
Deferred consideration (Note 12) | 0 | ||||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Exchange Traded Funds [Member] | |||||
Assets: | |||||
Securities owned, at fair value | 23,862 | 24,165 | |||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||||
Assets: | |||||
AdvisorEngine Inc. – Financial interests | 0 | ||||
Investment owned, at fair value | 0 | ||||
Total | 0 | ||||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Assets: | |||||
Total | 10,909 | 10,730 | |||
Liabilities: | |||||
Deferred consideration (Note 12) | 0 | ||||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Federal Agency [Member] | |||||
Assets: | |||||
Securities owned, at fair value | 8,832 | 8,613 | |||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | All Other Corporate Bonds [Member] | |||||
Assets: | |||||
Securities owned, at fair value | 2,077 | 2,117 | |||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||||
Assets: | |||||
AdvisorEngine Inc. – Financial interests | 0 | ||||
Investment owned, at fair value | 0 | ||||
Total | 0 | ||||
Liabilities: | |||||
Convertible notes | 170,191 | ||||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Assets: | |||||
Cash equivalents | 0 | ||||
Total | 0 | ||||
Liabilities: | |||||
Deferred consideration (Note 12) | 227,146 | 230,137 | |||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||||
Assets: | |||||
AdvisorEngine Inc. – Financial interests | 0 | ||||
Investment owned, at fair value | 0 | ||||
Total | $ 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Series A convertible preferred stock [Member] | |||||
Assets: | |||||
Investment owned, at fair value | $ 8,349 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Categorization of Assets and Liabilities Measured at Fair Value (Parenthetical) (Detail) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | Aug. 13, 2020 | Jun. 16, 2020 | May 04, 2020 |
Fair value of convertible notes | $ 170,191 | $ 24,344 | $ 145,847 | ||
Advisor Engine [Member] | |||||
Fair value of financial interest disposed off | $ 9,592 | ||||
Thesys Group, Inc [Member] | |||||
Fair value of financial interest | $ 0 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Reconciliation of Recurring Fair Value Measurements (Detail) - Deferred Consideration Obligation [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 230,137 | $ 173,024 |
Net realized losses | 4,270 | 3,760 |
Net unrealized losses | (2,832) | 2,208 |
Settlements | (4,429) | (3,692) |
Ending balance | $ 227,146 | $ 175,300 |
Securities Owned- Schedule of S
Securities Owned- Schedule of Securities Owned (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Securities Owned [Line Items] | ||
Securities Owned Total | $ 34,771 | $ 34,895 |
Trading Securities [Member] | ||
Securities Owned [Line Items] | ||
Securities Owned Total | $ 34,771 | $ 34,895 |
Securities Owned - Additional I
Securities Owned - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Trading losses on securities owned | $ 561 | $ 196 |
Securities Held-to-Maturity - S
Securities Held-to-Maturity - Schedule of Securities Held-to-Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt instruments: Pass-through GSEs (amortized cost) | $ 411 | $ 451 |
Federal Agency [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt instruments: Pass-through GSEs (amortized cost) | $ 411 | $ 451 |
Securities Held-to-Maturity -_2
Securities Held-to-Maturity - Schedule of Unrealized Gains, Losses and Fair Value of Securities Held-to-Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Held-to-maturity cost or amortized cost | $ 411 | $ 451 |
Held-to-maturity gross unrealized gains | 20 | 30 |
Held-to-maturity gross unrealized losses | (1) | (12) |
Held-to-maturity fair value | $ 430 | $ 469 |
Securities Held-to-Maturity - A
Securities Held-to-Maturity - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from Sale and Maturity of Held-to-maturity Securities | $ 38 | $ 6,030 |
Securities Held-to-Maturity -_3
Securities Held-to-Maturity - Schedule of Maturity Profile of Securities Held-to-Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Held-to-maturity due within one year | ||
Held-to-maturity due one year through five years | ||
Held-to-maturity due five years through ten years | ||
Held-to-maturity due over ten years | 411 | 451 |
Held-to-maturity cost or amortized cost | $ 411 | $ 451 |
Investments - Details of Invest
Investments - Details of Investments Carried at Cost (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Securrency Inc. - Carrying Value [Member] | ||
Investments | $ 13,849 | $ 8,112 |
Securrency Inc. - Cost [Member] | ||
Investments | 13,612 | 8,112 |
Securrency Inc. - Series A Convertible Preferred Stock - Carrying Value [Member] | ||
Investments | 8,349 | 8,112 |
Securrency Inc. - Series A Convertible Preferred Stock - Cost [Member] | ||
Investments | 8,112 | 8,112 |
Securrency Inc. - Series B Convertible Preferred Stock - Carrying Value [Member] | ||
Investments | 5,500 | 0 |
Securrency Inc. - Series B Convertible Preferred Stock - Cost [Member] | ||
Investments | $ 5,500 | $ 0 |
Investment - Additional Informa
Investment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2031 | Dec. 31, 2029 | |
Subsequent Event [Member] | |||
Investment [Line Items] | |||
Percentage of voting approval required to redeem all of the outstanding Series A shares | 60.00% | ||
Percentage of voting approval required to redeem all of the outstanding Series B shares | 90.00% | ||
Securrency Inc [Member] | |||
Investment [Line Items] | |||
Cost of Investments | $ 13,612 | ||
Ownership interest percentage | 25.00% | ||
Original fully diluted ownership interest percentage | 20.00% | ||
Securrency - Series A Preferred Stock [Member] | |||
Investment [Line Items] | |||
Number of shares purchased | 5,178,488 | ||
Non-cumulative dividend | 6.00% | ||
Unrealized gain on Series A Shares | $ 237 | ||
Securrency - Series B Convertible Preferred Stock [Member] | |||
Investment [Line Items] | |||
Number of shares purchased | 2,004,665 |
Investment - Summary of table b
Investment - Summary of table below presents the inputs used in backsolve valuation approach as follows (Detail) - Fair Value, Inputs, Level 3 [Member] | Mar. 08, 2021yr |
Measurement Input Expected Volatility [Member] | |
Investments Fair Value Disclosure [Line Items] | |
Expected volatility | 55.00% |
Measurement Input, Expected Term [Member] | |
Investments Fair Value Disclosure [Line Items] | |
Time to exit (in years) | 5 |
Fixed Assets, net - Schedule of
Fixed Assets, net - Schedule of Fixed Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation and amortization | $ (8,773) | $ (8,494) |
Total | 7,432 | 7,579 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 2,959 | 2,836 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 2,225 | 2,225 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 11,021 | $ 11,012 |
Deferred Consideration - Additi
Deferred Consideration - Additional Information (Detail) $ in Thousands | Mar. 31, 2021USD ($)oz | Dec. 31, 2020USD ($)oz |
Business Acquisition [Line Items] | ||
Deferred consideration | $ 227,146 | $ 230,137 |
Deferred consideration, current | 15,637 | 17,374 |
Deferred consideration, non-current | $ 211,509 | $ 212,763 |
April 1, 2018 through March 31, 2058 [Member] | ||
Business Acquisition [Line Items] | ||
Fixed payment ounces of gold | oz | 9,500 | 9,500 |
April 1, 2058 and Thereafter [Member] | ||
Business Acquisition [Line Items] | ||
Fixed payment ounces of gold | oz | 6,333 | 6,333 |
Deferred Consideration - Summar
Deferred Consideration - Summary of valuation of deferred consideration (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Valuation Of Deferred Consideration [Line Item] | ||
Discount rate | 9.00% | 9.00% |
Perpetual growth rate | 1.70% | 0.90% |
Minimum [Member] | ||
Disclosure Of Valuation Of Deferred Consideration [Line Item] | ||
Forward-looking gold price | $ 1,717 | $ 1,903 |
Maximum [Member] | ||
Disclosure Of Valuation Of Deferred Consideration [Line Item] | ||
Forward-looking gold price | 3,201 | 2,662 |
Weighted Average [Member] | ||
Disclosure Of Valuation Of Deferred Consideration [Line Item] | ||
Forward-looking gold price | $ 2,136 | $ 2,117 |
Deferred Consideration - Schedu
Deferred Consideration - Schedule of Deferred Consideration (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Contractual gold payments | $ 4,270 | $ 3,760 |
Contractual gold payments – gold ounces paid | 2,375 | 2,375 |
Gain/(loss) on revaluation of deferred consideration - gold payments | $ 2,832 | $ (2,208) |
Convertible Notes - Additional
Convertible Notes - Additional Information (Detail) $ / shares in Units, $ in Thousands | May 20, 2023USD ($) | Jan. 01, 2021USD ($) | Aug. 13, 2020USD ($)Day$ / shares | Jun. 16, 2020USD ($)Day$ / shares | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | May 21, 2023Day | May 13, 2023Day | Dec. 31, 2020USD ($) |
Convertible Senior Notes [Line Items] | |||||||||
Convertible senior notes face value | $ 175,000 | $ 175,000 | |||||||
Debt instrument convertible threshold percentage of stock price trigger | 130.00% | ||||||||
Principal amount of the convertible notes | $ 1,000 | ||||||||
Implementation of ASU 2020-06 [Member] | |||||||||
Convertible Senior Notes [Line Items] | |||||||||
Reduction of unamortized discount upon implementation of ASU 2020-06 | $ 4,207 | ||||||||
Increase in unamortized issuance costs upon implementation of ASU 2020-06 | $ 119 | ||||||||
Accounts Payable and Accrued Liabilities [Member] | |||||||||
Convertible Senior Notes [Line Items] | |||||||||
Interest payable | 2,209 | $ 342 | |||||||
Convertible Senior Notes Due Two Thousand And Twenty Three [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||
Convertible Senior Notes [Line Items] | |||||||||
Fair value of debt component of convertible senior notes | 214,972 | ||||||||
Convertible Senior Notes Due Two Thousand And Twenty Three [Member] | Private Placement [Member] | |||||||||
Convertible Senior Notes [Line Items] | |||||||||
Convertible senior notes face value | $ 25,000 | $ 150,000 | |||||||
Convertible senior notes stated rate of interest | 4.25% | 4.25% | |||||||
Covertible senior notes year of maturity | 2023 | 2023 | |||||||
Convertible senior notes maturity date | Jun. 15, 2023 | Jun. 15, 2023 | |||||||
Redemption provisions - Convertible notes redemption price as a percentage of principal amount accrued interest and unpaid interest | 100.00% | 100.00% | |||||||
Debt instrument percentage of principal amount due to lenders entitled to declare repurchase | 25.00% | 25.00% | |||||||
Share price as a percentage of last reported price and conversion rate | 98.00% | 98.00% | |||||||
Convertible Senior Notes Due Two Thousand And Twenty Three [Member] | Private Placement [Member] | Conversion Price [Member] | |||||||||
Convertible Senior Notes [Line Items] | |||||||||
Convertible debt instrument conversion price | $ / shares | $ 5.92 | $ 5.92 | |||||||
Convertible debt instrument terms of conversion | Convertible at an initial conversion rate of 168.9189 shares of the Company’s common stock, per $1,000 principal amount of notes | Convertible at an initial conversion rate of 168.9189 shares of the Company’s common stock, per $1,000 principal amount of notes | |||||||
Debt instrument conversion ratio | 168.9189 | 168.9189 | |||||||
Convertible Senior Notes Due Two Thousand And Twenty Three [Member] | Private Placement [Member] | Redemption Provisions [Member] | |||||||||
Convertible Senior Notes [Line Items] | |||||||||
Redemption provisions - Convertible notes | Redemption price of $7.70: The Company may redeem for cash all or any portion of the notes, at its option, on or after June 20, 2021 and on or prior to the 55th scheduled trading day immediately preceding the maturity date, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days, including the trading day immediately preceding the date on which the Company provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption, at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding the redemption date. No sinking fund is provided for the Convertible Notes. | Redemption price of $7.70: The Company may redeem for cash all or any portion of the notes, at its option, on or after June 20, 2021 and on or prior to the 55th scheduled trading day immediately preceding the maturity date, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days, including the trading day immediately preceding the date on which the Company provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption, at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding the redemption date. No sinking fund is provided for the Convertible Notes. | |||||||
Convertible Senior Notes Due Two Thousand And Twenty Three [Member] | Private Placement [Member] | Conversion Rate Increase [Member] | |||||||||
Convertible Senior Notes [Line Items] | |||||||||
Maximum Conversion Rate | 270.2702 | 270.2702 | |||||||
Maximum number of shares issuable upon conversion | Day | 47,297,285 | 47,297,285 | |||||||
Convertible Senior Notes Due Two Thousand And Twenty Three [Member] | Private Placement [Member] | Scenario, Forecast [Member] | |||||||||
Convertible Senior Notes [Line Items] | |||||||||
Redemption provisions - Convertible notes, threshold trading days | Day | 20 | 20 | |||||||
Redemption provisions - Convertible notes, threshold consecutive trading days | Day | 30 | 30 | |||||||
Number Of Threshold Trading Days For Determining The Share Price | 5 days | ||||||||
Measurement period for determining share price | 10 days | ||||||||
Convertible Debt [Member] | |||||||||
Convertible Senior Notes [Line Items] | |||||||||
Interest expense | 2,296 | ||||||||
If-Converted Value of Convertible Notes | $ 184,755 | ||||||||
Former Credit Facility [Member] | |||||||||
Convertible Senior Notes [Line Items] | |||||||||
Interest expense | $ 2,419 | ||||||||
US National Bank Association [Member] | Convertible Senior Notes Due Two Thousand And Twenty Three [Member] | Private Placement [Member] | Redemption Provisions [Member] | |||||||||
Convertible Senior Notes [Line Items] | |||||||||
Redemption provisions - Convertible notes redemption price as a percentage of principal amount accrued interest and unpaid interest | 100.00% |
Convertible Notes - Summary of
Convertible Notes - Summary of the carrying value of the convertible notes (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Principal amount | $ 175,000 | $ 175,000 | |
Plus: premium on Additional Notes | 250 | 250 | |
Carrying amount | 175,250 | 175,250 | |
Less: Unamortized discount (1) | [1] | (4,207) | |
Less: Unamortized issuance costs(1) | [1] | (4,087) | (4,397) |
Carrying amount | $ 171,163 | $ 166,646 | |
Effective interest rate(2) | [2] | 5.30% | 6.29% |
[1] | Unamortized discount reduced by $4,207 and unamortized issuance costs increased by $119 upon the early adoption of ASU 2020-06, Debt – Debt with Conversion and Other Options, on January 1, 2021. The discount previously arose from the bifurcation of the conversion option which occurred prior to the adoption of ASU 2020-06. The unamortized issuance costs are reported net of the unamortized premium on the Additional Notes. | ||
[2] | Includes amortization of the issuance costs allocated to the Convertible Notes and amortization of the premium associated with the Additional Notes. The effective interest rate prior to January 1, 2021 also included amortization of the discount arising from the bifurcation of the conversion option. |
Preferred Shares - Additional I
Preferred Shares - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Apr. 11, 2018 | Mar. 31, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | |||
Fair value of preferred stock consideration | $ 132,750 | ||
Acquisition price per share | $ 9 | ||
Preferred stock redemption value | $ 88,642 | $ 72,667 | |
Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Other redemption rights unrelated to stockholder approval | Temporary equity classification is required for redeemable instruments for which redemption triggers are outside of the issuer’s control. ETFS Capital has the right to redeem all the Preferred Shares specified to be converted during the period of time specified in the Certificate of Designations in the event that: (a) the number of shares of the Company’s common stock authorized by its certificate of incorporation is insufficient to permit the Company to convert all of the Preferred Shares requested by ETFS Capital to be converted; or (b) ETFS Capital does not, upon completion of a change of control of the Company, receive the same amount per Preferred Share as it would have received had each outstanding Preferred Share been converted into common stock immediately prior to the change of control. However, the Company will not be obligated to make any such redemption payments to the extent such payments would be a breach of any covenant or obligation the Company owes to any of its secured creditors or is otherwise prohibited by applicable law. | ||
Acquisition of ETFS Business [Member] | Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares issued in business acquisition | 14,750 | ||
Acquisition of ETFS Business [Member] | Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common stock equivalents | 14,750,000 |
Preferred Shares - Summary of P
Preferred Shares - Summary of Preferred Share Balance (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Preferred Units [Line Items] | ||
Preferred Shares – carrying value | $ 132,569 | $ 132,569 |
Series A Preferred Stock [Member] | ||
Preferred Units [Line Items] | ||
Issuance of Preferred Shares | 132,750 | 132,750 |
Less: Issuance costs | (181) | (181) |
Preferred Shares – carrying value | $ 132,569 | $ 132,569 |
Leases - Summary of additional
Leases - Summary of additional information regarding Company's Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lease cost: | ||
Operating lease cost | $ 697 | $ 798 |
Short-term lease cost | 295 | 342 |
Total lease cost | 992 | 1,140 |
Other information: | ||
Cash paid for amounts included in the measurement of operating liabilities (operating leases) | $ 918 | $ 926 |
Weighted-average remaining lease term (in years) – operating leases | 8 years 10 months 24 days | 9 years 2 months 12 days |
Weighted-average discount rate – operating leases | 6.30% | 6.30% |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | Aug. 21, 2024 | Aug. 21, 2023 | Mar. 31, 2021 |
Operating lease notice to landlord before cancellation | 12 months | ||
Operating lease, impairment loss | $ 303 | ||
Scenario, Forecast [Member] | |||
Operating lease cancellation cost | $ 4,236,000 |
Leases - Summary of future mini
Leases - Summary of future minimum lease payments (Detail) $ in Thousands | Mar. 31, 2021USD ($) |
Lessee Disclosure [Abstract] | |
Remainder of 2021 | $ 2,218 |
2022 | 2,958 |
2023 | 2,958 |
2024 | 3,037 |
2025 | 3,148 |
2026 and thereafter | 11,456 |
Total future minimum lease payments (undiscounted) | $ 25,775 |
Leases - Summary of Reconciles
Leases - Summary of Reconciles future minimum lease payments (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Amounts recognized in the Company's Consolidated Balance Sheet | ||
Lease liability – short term | $ 2,958 | $ 3,135 |
Lease liability – long term | 17,012 | $ 17,434 |
Subtotal | 19,970 | |
Difference between undiscounted and discounted cash flows | 5,805 | |
Total future minimum lease payments (undiscounted) | $ 25,775 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - Mar. 31, 2020 € in Thousands, $ in Thousands | EUR (€) | USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||
Damages sought by plantiffs in litigation matter | € 9,000 | $ 10,565 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Information about Variable Interests (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Carrying Amount - Assets | ||
Total net carrying value | $ 885,217 | $ 896,692 |
Securrency Inc [Member] | ||
Carrying Amount - Assets | ||
Preferred stock – Series A Shares | 8,349 | 8,112 |
Preferred stock – Series B Shares | 5,500 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Carrying Amount - Assets | ||
Total net carrying value | 13,849 | 8,112 |
Maximum exposure to loss | $ 13,849 | $ 8,112 |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Additional Information (Detail) - Advisory Fees [Member] | Mar. 31, 2021USD ($) |
Revenue from Contracts with Customers [Line Items] | |
Contract assets | $ 0 |
Contract liabilities | 0 |
Costs incurred to obtain or fulfill contracts with customers | $ 0 |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Summary of Revenues from Contracts with Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues Categorized as Revenues from Contracts with Customers and Other Sources of Revenues [Line Items] | ||
Total operating revenues | $ 72,830 | $ 63,874 |
Advisory Fees [Member] | ||
Revenues Categorized as Revenues from Contracts with Customers and Other Sources of Revenues [Line Items] | ||
Total operating revenues | 71,616 | 62,950 |
Other Income [Member] | ||
Revenues Categorized as Revenues from Contracts with Customers and Other Sources of Revenues [Line Items] | ||
Total operating revenues | $ 1,214 | $ 924 |
Revenues from Contracts with _5
Revenues from Contracts with Customers - Summary of Geographic Distribution of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | $ 72,830 | $ 63,874 |
UNITED STATES | ||
Revenues | 40,699 | 39,870 |
JERSEY | ||
Revenues | 29,990 | 22,525 |
IRELAND | ||
Revenues | $ 2,141 | 1,114 |
CANADA | ||
Revenues | $ 365 |
Related Party Transactions - Su
Related Party Transactions - Summary of Accounts Receivable from Related Parties (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | $ 27,258 | $ 26,884 |
WisdomTree Trust [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | 14,347 | 13,030 |
Manjer Issuers [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | 11,134 | 11,693 |
WisdomTree Multi Asset Issuer PLC And WisdomTree Issuer PLC [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | $ 1,777 | 2,125 |
WisdomTree Commodity Services LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | $ 36 |
Related Party Transactions - _2
Related Party Transactions - Summary of Revenues from Advisory Services Provided to Related Parties (Detail) - Advisory Services [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Revenues from advisory services | $ 71,616 | $ 62,950 |
WisdomTree Trust [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues from advisory services | 40,536 | 39,601 |
Manjer Issuers [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues from advisory services | 27,045 | 20,258 |
WisdomTree Multi Asset Issuer PLC And WisdomTree Issuer PLC [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues from advisory services | $ 4,035 | 2,528 |
WisdomTree Commodity Services LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues from advisory services | 198 | |
WisdomTree Asset Management Canada, Inc [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues from advisory services | $ 365 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Losses related to certain WisdomTree ETFs | $ 384 | $ 290 |
WisdomTree ETF [Member] | ||
Related Party Transaction [Line Items] | ||
Investment | $ 23,626 | $ 23,932 |
Stock-Based Awards - Additional
Stock-Based Awards - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jun. 20, 2016 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Award | |||
Stock option issuance period | 10 years | ||
Option vested period | 1 year | ||
Shares of common stock authorized to issue under equity award plan | 10,000,000 | ||
Stock-based compensation expense | $ 3,143 | $ 3,239 | |
Below 25th Percentile [Member] | |||
Share-based Payment Award | |||
Shares granted and outstanding, Vesting percentage | 0.00% | ||
At 25th Percentile [Member] | |||
Share-based Payment Award | |||
Shares granted and outstanding, Vesting percentage | 50.00% | ||
At 50th Percentile [Member] | |||
Share-based Payment Award | |||
Shares granted and outstanding, Vesting percentage | 100.00% | ||
At 100th Percentile for grants made in 2019 and 2020 [Member] | |||
Share-based Payment Award | |||
Shares granted and outstanding, Vesting percentage | 200.00% | ||
At 85th Percentile for grants made in 2021 [Member] | |||
Share-based Payment Award | |||
Shares granted and outstanding, Vesting percentage | 200.00% | ||
Performance Based Restricted Stock Unit [Member] | Maximum [Member] | |||
Share-based Payment Award | |||
Shares granted and outstanding, Vesting percentage | 200.00% | ||
Performance Based Restricted Stock Unit [Member] | Minimum [Member] | |||
Share-based Payment Award | |||
Shares granted and outstanding, Vesting percentage | 0.00% |
Stock-Based Awards - Summary of
Stock-Based Awards - Summary of Unrecognized Stock-Based Compensation Expense and Average Remaining Vesting Period (Detail) - Employees and Directors [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Average Remaining Vesting Period | 1 year 8 months 12 days |
Unrecognized Stock-Based Compensation | $ 16,488 |
Stock-Based Awards - Stock-Bas
Stock-Based Awards - Stock-Based Awards - Summary of Stock Options, Restricted Stock and Restricted Stock Unit Activity (Detail) | 3 Months Ended |
Mar. 31, 2021shares | |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, beginning balance | 305,000 |
Options, Exercised/vested | (75,000) |
Options, Forfeitures | (115,000) |
Options, ending balance | 115,000 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested Beginning Balance, Shares | 3,580,743 |
Granted, Shares | 1,501,123 |
Exercised/vested | (1,243,763) |
Forfeited, Shares | (7,302) |
Unvested Ending Balance, Shares | 3,830,801 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested Beginning Balance, Shares | 39,408 |
Granted, Shares | 29,389 |
Exercised/vested | (15,136) |
Unvested Ending Balance, Shares | 53,661 |
Performance Based Restricted Stock Unites (PRSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested Beginning Balance, Shares | 341,312 |
Granted, Shares | 257,043 |
Unvested Ending Balance, Shares | 598,355 |
Stock-Based Awards - Summary _2
Stock-Based Awards - Summary of Stock Options, Restricted Stock and Restricted Stock Unit Activity (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Number of days of stock prices used to compute average stock price | 90 days |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 34.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 57.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 44.00% |
Shares granted and outstanding, Risk free interest rate | 0.17% |
Shares granted and outstanding, Expected dividend rate | 0.00% |
Minimum [Member] | Performance Based Restricted Stock Unit [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted and outstanding, Vesting percentage | 0.00% |
Maximum [Member] | Performance Based Restricted Stock Unit [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted and outstanding, Vesting percentage | 200.00% |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income/(loss) | $ 15,147 | $ (8,638) |
Less: Income distributed to participating securities | (558) | (555) |
Less: Undistributed income allocable to participating securities | (1,152) | |
Net (loss)/income available to common stockholders – Basic EPS | $ 13,437 | $ (9,193) |
Weighted average common shares (in thousands) | 145,649,000 | 152,519,000 |
Basic (loss)/earnings per share | $ 0.09 | $ (0.06) |
Net (loss)/income available to common stockholders | $ 13,437 | $ (9,193) |
Add back: Undistributed income allocable to participating securities | 1,152 | |
Less: Reallocation of undistributed income allocable to participating securities considered potentially dilutive | (1,152) | |
Net (loss)/income available to common stockholders – Diluted EPS | $ 13,437 | $ (9,193) |
Weighted average common shares | 145,649,000 | 152,519,000 |
Dilutive effect of common stock equivalents, excluding participating securities | 121,000 | 0 |
Weighted average diluted shares | 145,770,000 | 152,519,000 |
Diluted earnings/(loss) per share | $ 0.09 | $ (0.06) |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Line Items] | ||
Anti-dilutive common stock equivalents excluded from calculation of diluted earnings per share | 149,000 | 430,000 |
Dilutive common stock equivalents | 121,000 | 0 |
Convertible Common Stock [Member] | ||
Earnings Per Share [Line Items] | ||
Convertible debt instrument conversion price | $ 5.92 |
Earnings Per Shares - Schedule
Earnings Per Shares - Schedule of Weighted Average Number of Shares (Detail) - shares shares in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Earnings Per Share [Abstract] | |||
Weighted average diluted shares as disclosed on the Consolidated Statements of Operations | [1] | 161,831 | 152,519 |
Weighted average shares of common stock issuable upon conversion of the Preferred Shares (Note 15) | (14,750) | ||
Potentially dilutive restricted stock awards | (1,311) | ||
Weighted average diluted shares | 145,770 | 152,519 | |
[1] | Excludes 15,025 participating securities and 16 potentially dilutive non-participating common stock equivalents for the three months ended March 31, 2020 as the Company reported a net loss for the period (shares herein are reported in thousands). |
Earnings Per Shares - Schedul_2
Earnings Per Shares - Schedule of Weighted Average Number of Shares (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2020shares | |
Earnings Per Share [Abstract] | |
Participating Securities | 15,025 |
Potentially Dilutive common stock equivalents | 16 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | ||
Schedule Of Income Tax [Line Items] | ||||
Tax effected NOLs - US | $ 382 | |||
NOL expiration date | 2024 | |||
Tax effected NOLs - International | $ 2,084 | $ 2,167 | ||
Federal statutory rate | 21.00% | 21.00% | ||
Accrued for unrecognized tax benefits and interest/penalties related to a tax position claimed or expected to be claimed on a tax return | $ 22,222 | 27,016 | ||
Tax effected capital loss | $ 16,596 | 16,596 | ||
Estimated effective rate | (14.90%) | 21.50% | ||
Income tax expense/(benefit) | $ (1,969) | $ (2,371) | ||
Reduction in unrecognized tax benefits | 5,171 | [1] | 5,981 | |
Non-taxable gain recognized upon sale of our Canadian ETF business | $ 2,877 | |||
Decrease in unrecognized tax benefits in next 12 months, including interest and penalties | 7,067 | |||
Decrease in accrued interest and penalties over the next 12 months | 2,016 | |||
Unremitted earnings – International subsidiaries | 97 | $ 138 | ||
Other Noncurrent Liabilities [Member] | ||||
Schedule Of Income Tax [Line Items] | ||||
Accrued for unrecognized tax benefits and interest/penalties related to a tax position claimed or expected to be claimed on a tax return | $ 22,222 | |||
[1] | Recorded as an income tax benefit of $5,171 during the three months ended March 31, 2021, along with an equal and offsetting amount recorded in other losses, net, to recognize a reduction in the indemnification asset. During the three months ended March 31, 2020, an income tax benefit of $5,981 was recorded along with an equal and offsetting amount in other losses, net. |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Capital losses | $ 16,596 | $ 16,596 |
Operating lease liabilities | 4,851 | 4,953 |
Accrued expenses | 1,363 | 3,507 |
Interest carryforwards | 2,184 | 2,235 |
NOLs - Foreign | 2,084 | 2,167 |
Stock-based compensation | 1,195 | 1,922 |
Goodwill and intangible assets | 1,418 | 1,466 |
NOLs – U.S. | 382 | 510 |
Outside basis difference | 122 | 122 |
Other | 263 | 111 |
Deferred tax assets | 30,458 | 33,589 |
Deferred tax liabilities: | ||
Right of use assets – operating leases | 3,848 | 3,927 |
Fixed assets and prepaid assets | 1,234 | 1,261 |
Foreign currency translation adjustment | 262 | 293 |
Unremitted earnings – International subsidiaries | 97 | 138 |
Allocated equity component of convertible note | 1,022 | |
Deferred tax liabilities | 5,441 | 6,641 |
Total deferred tax assets less deferred tax liabilities | 25,017 | 26,948 |
Less: valuation allowance | (18,802) | (18,885) |
Deferred tax assets, net | $ 6,215 | $ 8,063 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Balance of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | |||
Income Tax Contingency [Line Items] | ||||
Beginning balance | $ 27,016 | |||
Decrease -Lapse of statute of limitations | (5,171) | [1] | $ (5,981) | |
Increases | 39 | |||
Foreign currency translation | [2] | 338 | ||
Ending balance | 22,222 | |||
Unrecognized Tax Benefits [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Beginning balance | 21,850 | |||
Decrease -Lapse of statute of limitations | [1] | (3,559) | ||
Foreign currency translation | [2] | 273 | ||
Ending balance | 18,564 | |||
Interest And Penalties [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Beginning balance | 5,166 | |||
Decrease -Lapse of statute of limitations | [1] | (1,612) | ||
Increases | 39 | |||
Foreign currency translation | [2] | 65 | ||
Ending balance | $ 3,658 | |||
[1] | Recorded as an income tax benefit of $5,171 during the three months ended March 31, 2021, along with an equal and offsetting amount recorded in other losses, net, to recognize a reduction in the indemnification asset. During the three months ended March 31, 2020, an income tax benefit of $5,981 was recorded along with an equal and offsetting amount in other losses, net. | |||
[2] | The gross unrecognized tax benefits were accrued in British pounds sterling. |
Income Taxes - Schedule of Ch_2
Income Taxes - Schedule of Changes in Balance of Gross Unrecognized Tax Benefits (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Income Tax Disclosure [Abstract] | |||
Reduction in unrecognized tax benefits | $ 5,171 | [1] | $ 5,981 |
[1] | Recorded as an income tax benefit of $5,171 during the three months ended March 31, 2021, along with an equal and offsetting amount recorded in other losses, net, to recognize a reduction in the indemnification asset. During the three months ended March 31, 2020, an income tax benefit of $5,981 was recorded along with an equal and offsetting amount in other losses, net. |
Shares Repurchased - Additional
Shares Repurchased - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Apr. 24, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Class of Stock [Line Items] | |||
Repurchased common stock, value | $ 2,630 | $ 1,495 | |
Three-Year Share Repurchase Program [Member] | |||
Class of Stock [Line Items] | |||
Repurchased common stock, shares | 489,763 | 385,399 | |
Repurchased common stock, value | $ 2,630 | $ 1,495 | |
Dollar amount remaining available for future share repurchases | $ 49,561 | ||
Share repurchase program, extended term date | Apr. 27, 2022 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Goodwill by Reporting Unit (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 85,856 |
Ending balance | 85,856 |
Reportable Subsegments [Member] | |
Goodwill [Line Items] | |
Beginning balance | 85,856 |
Changes | 0 |
Ending balance | $ 85,856 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Apr. 11, 2018 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $ 85,856 | $ 85,856 | |
Intangible asset related to its customary advisory agreement | $ 601,247 | $ 601,247 | |
Acquisition completion date | Apr. 11, 2018 | ||
Acquisition of ETFS Business [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $ 84,057 | ||
Intangible asset related to its customary advisory agreement | $ 601,247 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Indefinite-lived Intangible Assets (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | |
Beginning balance | $ 601,247 |
Changes | 0 |
Ending balance | $ 601,247 |
Contingent Payments - Additiona
Contingent Payments - Additional Information (Detail) $ in Thousands, $ in Thousands | Feb. 19, 2020USD ($) | Feb. 19, 2020CAD ($) | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | May 04, 2020USD ($) |
Recognized gain loss on sale of business | $ 2,877 | ||||||||
Impairment | $ 303 | 19,672 | |||||||
WisdomTree Asset Management Canada, Inc [Member] | |||||||||
Other receivables | $ 2,000 | $ 2,000 | |||||||
Proceeds from divestiture of businesses | $ 2,774 | $ 3,720 | |||||||
Recognized gain loss on sale of business | 2,877 | ||||||||
WisdomTree Asset Management Canada, Inc [Member] | Minimum [Member] | |||||||||
Additional consideration payable | 2,000 | ||||||||
WisdomTree Asset Management Canada, Inc [Member] | Maximum [Member] | |||||||||
Additional consideration payable | $ 8,000 | ||||||||
Advisor Engine [Member] | |||||||||
Maximum Amount of Contingent Payments That May be Received | $ 10,408 | ||||||||
Contingent payments | $ 0 | $ 0 | |||||||
Gain (Loss) on Disposition of Assets | $ 1,093 | ||||||||
Advisor Engine [Member] | Fair Value Of Upfront Consideration Received [Member] | |||||||||
Fair value of upfront consideration received | $ 9,592 | ||||||||
Advisor Engine Financial Interest [Member] | Financial Interests [Member] | |||||||||
Impairment | $ 19,672 |