Quarterly report pursuant to Section 13 or 15(d)

Long-Term Investments

v3.20.1
Long-Term Investments
9 Months Ended
Mar. 31, 2020
Long Term Investments [Abstract]  
Long-Term Investments

9.

LONG-TERM INVESTMENTS

The Company has three investments in privately-held entities, each of which is a precious metals retailer and customer of the Company. For each of these entities, the Company has: 1) an exclusive supplier agreement, for which these entities have agreed to purchase all bullion products required for their businesses exclusively from A-Mark, subject to certain limitations; 2) a product fulfillment services and storage agreement; and 3) the right to appoint a director to the entity's board of directors (which has been exercised in each case). The Company has determined that it is appropriate to account for each of these investments under the equity method of accounting. The following table shows the carrying value and ownership percentage of the Company's investment in each entity:

 

 

 

March 31, 2020

 

 

June 30, 2019

 

Entity

 

Carrying

Value

 

 

Ownership

Percentage

 

 

Carrying

Value

 

 

Ownership

Percentage

 

 

 

(in thousands)

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

Company A

 

$

2,024

 

 

 

7.4

%

 

$

2,000

 

 

 

7.4

%

Company B

 

 

9,374

 

 

 

20.6

%

 

 

9,059

 

 

 

20.6

%

Company C

 

 

879

 

 

 

10.0

%

 

 

826

 

 

 

10.0

%

 

 

$

12,277

 

 

 

 

 

 

$

11,885

 

 

 

 

 

 

The Company considers these 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.