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

Quarterly report pursuant to Section 13 or 15(d)

Long-Term Investments

Long-Term Investments

3 Months Ended

Sep. 30, 2021

9. LONG-TERM INVESTMENTS

As of September 30, 2021, the Company had five investments in privately-held entities. The Company has determined that it is appropriate to account for four of these investments under the equity method of accounting, and the remaining investment under the cost-basis method of accounting.

The following table shows the carrying value and ownership percentage of the Company's investment in each entity:

	September 30, 2021						June 30, 2021
Entity ⁽¹⁾	Carrying Value			Ownership Percentage			Carrying Value		Ownership Percentage
	(in thousands)						(in thousands)
Company A	$	4,056			7.4	%	$	3,795		7.4	%
Company C		12,036	⁽²⁾		49.0	%		1,940		10.0	%
Company D		11,358			44.9	%		10,499		44.9	%
Company E		233			33.3	%		233		33.3	%
Company F		2,000			50.0	%		2,000		50.0	%
	$	29,683					$	18,467

(1)	JMB was previously reported as Company B. In March 2021, we acquired the remaining ownership interest in JMB that we did not previously own and consequently consolidated JMB as a wholly-owned subsidiary.

(2)	On August 27, 2021, the Company increased its ownership interest in Company C from 10% to 49%, for a purchase price of $9.75 million, consisting of $6.75 million in cash and 61,590 shares of the Company’s common stock. The Company acquired its initial minority investment in January 2019.

The Company considers all of our equity method investees to be related parties. See Note 13 for a summary of the Company's aggregate balances and activity with these related party entities. Company E is a cost method investment, which is not a related party.