Related Party Transactions |
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| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions |
Related parties include entities which the Company controls or has the ability to significantly influence, and entities which are under common control with the Company. Related parties also include persons who are affiliated with related entities or the Company who are in a position to influence corporate decisions (such as owners, executives, board members and their families). In the normal course of business, we enter into transactions with our related parties. Below is a list of related parties with whom we have had significant transactions during the presented periods:
1)
Stack’s Bowers Numismatics, LLC ("Stack's Bowers Galleries"). Stack's Bowers Galleries is a wholly-owned subsidiary of Spectrum Group International, Inc. ("SGI"). SGI and the Company have a common chief executive officer, and the chief executive officer and the general counsel of the Company are board members of SGI.
2)
Equity method investees. As of September 30, 2022, the Company has four investments in privately-held entities, each of which has been determined to be an equity method investee and a related party.
Our related party transactions include (i) sales and purchases of precious metals, (ii) financing activities, (iii) repurchase arrangements, and (iv) hedging transactions. Below is a summary of our related party transactions. The amounts presented for each period were based on each entity’s related party status for that period. Balances with Related Parties Receivables and Payables, Net As of September 30, 2022 and June 30, 2022, the Company had related party receivables and payables balances as set forth below:
(1)
Balance includes trade receivables and other receivables, net
(2)
Balance includes a note payable, trade payables, and other payables, net
(3)
Balance primarily represents trade payables and other payables, net
Long-term Investments As of September 30, 2022 and June 30, 2022, the aggregate carrying balance of the equity method investments was $72.8 million and $70.6 million respectively. (See Note 10.) Long-term Other Assets As of June 30, 2022, the fair value of the option to purchase an additional 27.6% ownership interest in Silver Gold Bull, Inc. was $5.3 million. This option was acquired in June 2022, in conjunction with the Company’s additional 40% ownership interest in Silver Gold Bull, Inc., and is exercisable between December 2023 and September 2024. (See Note 10.) Notes Payable On April 1, 2021, CCP entered into a loan agreement ("CCP Note") with CFC, which provides CFC with up to $4.0 million to fund commercial loans secured by graded sports cards and sports memorabilia to its borrowers. All loans to be funded using the proceeds from the CCP Note are subject to CCP’s prior written approval. The term of the CCP Note expires on April 1, 2024 and may be extended by mutual agreement. As of September 30, 2022 and June 30, 2022 the outstanding principal balance of the CCP Note was $3.9 million and $0.0 million. Activity with Related Parties Sales and Purchases During the three months ended September 30, 2022 and 2021, the Company made sales and purchases to various companies, which have been deemed to be related parties, as follows:
Interest Income During the three months ended September 30, 2022 and 2021, the Company earned interest income related to loans made to Stack's Bowers and from financing arrangements (including repurchase agreements) with affiliated companies, as set forth below:
Interest Expense During the three months ended September 30, 2022 and 2021, the Company incurred interest expense related to its note with CCP that totaled $15,000 and $0, respectively. Equity method investments — Earnings and Dividends Received During the three months ended September 30, 2022 and 2021, the Company's proportional share of our equity method investee's net income totaled $2.7 million and $1.5 million, respectively. During the three months ended September 30, 2022 and 2021, the Company received dividend payments that totaled, in the aggregate, $0.6 million and $0.0 million, respectively, from our equity method investees. Other Income During the three months ended September 30, 2022 and 2021, the Company earned royalty income related to one of CFC's secured lending agreements and information technology consulting services income from Stack's Bowers that totaled $0.5 million and $0.4 million, respectively. |
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