14. 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:

Our related party transactions primarily include (i) sales and purchases of precious metals, (ii) financing activities, (iii) repurchase arrangements, (iv) hedging transactions, and (v) related party lease arrangements. Below is a summary of our related party transactions. The amounts presented for each period reflect each entity’s related party status for that period.

Balances with Related Parties

Receivables and Payables, Net

Secured Loans Receivable

On March 1, 2018, CFC entered into a loan agreement with Stack's Bowers Galleries providing a secured line of credit on the wholesale value (i.e., the excess over the spot value of the metal), of numismatic products bearing interest at a competitive rate per annum, with a maximum borrowing line (subject to temporary increases) of $10.0 million. In addition to the annual rate of interest, the Company is entitled to receive a participation interest (or "royalty income") equal to 10% of the net profits realized by Stack's Bowers Galleries on the ultimate sale of the products. The initial term of the loan was 180 days; thereafter, the line of credit has been extended by additional consecutive 30-day periods by mutual agreement. As of June 30, 2024 and June 30, 2023, the outstanding principal balance of this loan was $0.0 million and $0.0 million, respectively.

On March 4, 2022, CFC entered into a loan agreement with Stack's Bowers Galleries providing a secured line of credit based on the collateral value of Stack's Bowers Galleries' secured customers' notes. The loan bears interest at a competitive rate per annum, with a maximum borrowing line of $3.0 million. The initial term of the loan was 180 days; thereafter, the line of credit has been extended by additional consecutive 180-day periods by mutual agreement. As of June 30, 2024 and June 30, 2023, the outstanding principal balance of this loan was $0.0 million and $0.0 million, respectively.

Operating Lease Right of Use Assets

As of June 30, 2024 and June 30, 2023, we recorded related party right of use assets of $2.0 million and $0.0 million, respectively.

Long-term Investments

As of June 30, 2024 and June 30, 2023, the aggregate carrying balance of the equity method investments was $50.2 million and $88.3 million, respectively. (See Note 10.)

Other Long-term Assets

In June 2022, in conjunction with the Company’s acquisition of an additional 40% ownership interest in SGB, the Company acquired an option to purchase additional ownership interest in SGB. This option was partially exercised and modified in June 2024. The option is exercisable through September 2025. (See Note 1 and Note 3.)

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 to its borrowers. All loans to be funded using the proceeds from the CCP Note are subject to CCP’s prior written approval. In March 2024, the expiration date for the CCP Note was amended to expire on April 1, 2026; the CCP Note may be further extended by mutual agreement. As of June 30, 2024 and June 30, 2023, the outstanding principal balance of the CCP Note was $4.0 million and $0.5 million, respectively.

In June 2024, SGB declared a $15.9 million dividend to existing shareholders based on certain levels of working capital. The dividend was paid on September 9, 2024. The dividend paid to the Company from SGB was $7.5 million which was recorded as a dividend receivable to A-Mark from SGB as of June 30, 2024 and has been eliminated upon consolidation. The remaining $8.4 million due to the other shareholders was recorded as a note payable by SGB as of June 30, 2024.

Activity with Related Parties

Sales and Purchases

Interest Income

Selling, General, and Administrative

The Company incurred selling, general, and administrative expense related to its leasing agreements with Solid Crossing and Stack's Bowers Galleries and consulting agreement with Cerberus Limited of $285,000, $34,000, and $0 during the years ended June 30, 2024, 2023, and 2022, respectively.

Interest Expense

The Company incurred interest expense related to its note with CCP of $78,000, $38,000, and $0 during the years ended June 30, 2024, 2023, and 2022, respectively.

Equity Method Investments — Earnings, Dividends and Distributions Received

The Company's proportional share of our equity method investee's earnings was $4.0 million, $12.6 million, and $6.9 million during the years ended June 30, 2024, 2023, and 2022, respectively.

The Company received dividend and distribution payments from our equity method investees that totaled, in the aggregate, $0.6 million, $1.0 million, and $1.7 million during the years ended June 30, 2024, 2023, and 2022, respectively.

Other Income

The Company earned royalty and consulting services income from related parties that totaled $1.2 million, $2.6 million, and $2.2 million during the years ended June 30, 2024, 2023, and 2022, respectively.

Foreign Currency Exchange Transactions with Related Person

Jeffrey D. Benjamin, A-Mark's Chairman of the Board, engaged in foreign currency transactions through A-Mark for an aggregate dollar value of $3.1 million, $2.1 million, and $1.3 million during the years ended June 30, 2024, 2023, and 2022, respectively. The Company believes that all transactions were on an arms' length basis and on terms and conditions applicable to unaffiliated third parties.