A-Mark Precious Metals, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2021

Components of operating lease expense for the years ended June 30, 2021 and 2020 were as follows:

in thousands
	Years Ended
	June 30, 2021		June 30, 2020
Operating lease costs	$	1,509	$	1,399
Variable lease costs		426		180
Short term lease costs		91		131
Finance lease costs		21		22
Sublease income		—		(108	)
Total lease costs, net	$	2,047	$	1,624

Schedule of Future Undiscounted Cash Flows for Each of Next Five Years and Thereafter and Reconciliation to Lease Liabilities

The following represents our future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities, as of June 30, 2021:

Years ending June 30,	Operating Leases
2022		1,710
2023		1,240
2024		1,275
2025		1,239
2026		801
Thereafter		1,519
Total lease payments		7,784
Imputed interest		(1,078	)
	$	6,706		⁽¹⁾
Operating lease liability - current	$	1,415		⁽²⁾
Operating lease liability - long-term		5,291		⁽³⁾
	$	6,706		⁽¹⁾

(1)	Represents the present value of the capitalized operating lease liabilities as of June 30, 2021.

(2)	Current operating lease liabilities are presented within accrued liabilities on our consolidated balance sheets.

(3)	Long-term operating lease liabilities are presented within other liabilities on our consolidated balance sheets.

Reconciliation of Changes in Noncontrolling Interests

The table below presents the reconciliation of changes in noncontrolling interests:

in thousands
	Total
Balance as of June 30, 2019	$	2,908
Net income attributable to noncontrolling interest		982
Balance as of June 30, 2020	$	3,890
Net income attributable to noncontrolling interest		1,287
Acquisition of noncontrolling interest, net of deferred taxes		(3,858	)	⁽¹	⁾
Balance as of June 30, 2021	$	1,319		⁽²	⁾

(1)	On April 1, 2021, the Company acquired the remaining 31% interest in the AMST joint venture, which increased the Company's ownership to 100%.

(2)	The remaining balance represents the 50% noncontrolling interests associated with the PMPP joint venture.

Reconciliation of Shares Used in Calculating Basic and Diluted Earnings per Common Shares

A reconciliation of shares used in calculating basic and diluted earnings per common share for the years ended June 30, 2021 and 2020, is presented below.

in thousands
	Years Ended
	June 30, 2021		June 30, 2020
Basic weighted average shares outstanding		8,343		7,032
Effect of common stock equivalents — stock issuable under outstanding equity awards		629		49
Diluted weighted average shares outstanding		8,972		7,081