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

Annual report pursuant to Section 13 and 15(d)

Long-Term Investments

Long-Term Investments

12 Months Ended

Jun. 30, 2022

10. LONG-TERM INVESTMENTS

As of June 30, 2022, 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:


in thousands
	June 30, 2022					June 30, 2021
Investee (1)	Carrying Value		Ownership Percentage			Carrying Value		Ownership Percentage
Silver Gold Bull, Inc. (2)	$	41,251		47.4	%	$	3,795		7.4	%
Pinehurst Coin Exchange, Inc. (3)		13,843		49.0	%		1,940		10.0	%
Sunshine Minting, Inc.		13,497		44.9	%		10,499		44.9	%
Company A		233		33.3	%		233		33.3	%
Company B		2,004		50.0	%		2,000		50.0	%
	$	70,828				$	18,467

(1)

All of the Company's investees are accounted for using the equity method, with the exception of Company A, which is accounted for using the cost method.

(2)

In June 2022, the Company increased its ownership interest in Silver Gold Bull, Inc. from 7.4% to 47.4%, for a purchase price of $42.7 million, consisting of $34.0 million in cash and 253,928 shares of the Company’s common stock. In addition to our 40% increased ownership stake of Silver Gold Bull Inc., the Company received an option, which is exercisable from December 2023 to September 2024, to purchase an additional 27.6% of the outstanding equity of Silver Gold Bull, Inc. that could bring our ownership interest in Silver Gold Bull, Inc. to 75.0 %. The initial fair value of the option was $5.3 million, and was recorded as an allocation to the carrying value of this investment. The Company acquired its initial minority investment in January 2014.

(3)

In August 2021, the Company increased its ownership interest in Pinehurst Coin Exchange, Inc. from 10.0% to 49.0%, for a purchase price of $9.73 million, consisting of $6.75 million in cash and 123,180 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 14 for a summary of the Company's aggregate balances and activity with these related party entities. Company A is a cost method investment, which is not a related party.