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

Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Dec. 31, 2013

Schedules of concentration of risk, by risk factor

Customers providing 10 percent or more of the Company's revenues for the three and six months ended December 31, 2013 and 2012 are listed below:



	Three Months Ended								Six Months Ended
	December 31, 2013				December 31, 2012				December 31, 2013				December 31, 2012

in thousands	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent
Total revenue	$	1,488,653	100.0	%	$	1,696,781	100.0	%	$	2,984,632	100.0	%	$	3,316,596	100.0	%
Customer concentrations
HSBC Bank USA	$	393,148	26.4	%	$	162,748	9.6	%	$	705,693	23.6	%	$	257,967	7.8	%
Johnson Matthey	32,169		2.2		191,810		11.3		56,596		1.9		719,226		21.7
Total	$	425,317	28.6	%	$	354,558	20.9	%	$	762,289	25.5	%	$	977,193	29.5	%

Customers providing 10 percent or more of the Company's accounts receivable, excluding $31.9 million and $35.6 million of secured loans as of December 31, 2013 and June 30, 2013, respectively, are listed below:



	December 31, 2013				June 30, 2013

in thousands	Amount		Percent		Amount		Percent
Total accounts receivable, net (without secured loans)	$	51,421	100.0	%	$	59,028	100.0	%

United States Mint	$	34,240	66.6	%	$	44,185	74.9	%
Royal Canadian Mint	3,556		6.9		8,593		14.6
Total	$	37,796	73.5	%	$	52,778	89.5	%

Customers providing 10 percent or more of the Company's secured loans as of December 31, 2013 and June 30, 2013, respectively, are listed below:



	December 31, 2013				June 30, 2013

in thousands	Amount		Percent		Amount		Percent
Total secured loans, net	$	31,935	100.0	%	$	35,585	100.0	%

Customer A	$	—	—	%	$	15,800	44.4	%
Customer B	2,046		6.4		3,659		10.3
Customer C	4,200		13.2	%	—		—	%
Total	$	6,246	19.6	%	$	19,459	54.7	%

Schedule of financial instruments not required to be carried at fair value

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments at December 31, 2013 and June 30, 2013. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.



	December 31, 2013				June 30, 2013
in thousands	Carrying Amount		Fair value		Carrying Amount		Fair value
in thousands	Carrying Amount		Fair value		Carrying Amount		Fair value
Financial assets:
Cash	$	15,015	$	15,015	$	21,565	$	21,565
Receivables, advances receivables and secured loans	83,326		83,326		94,509		94,509
Derivative assets - open sales and purchase commitments, net, included in receivable	3,293		3,293		—		—
Derivative assets - futures contracts included in receivable	10,921		10,921		14,967		14,967
Derivative assets - forward contracts included in receivable	4,933		4,933		471		471

Financial liabilities:
Lines of credit	$	106,000	$	106,000	$	95,000	$	95,000
Liability for borrowed metals	11,226		11,226		20,117		20,117
Product financing obligation	25,506		25,506		38,554		38,554
Derivative liabilities - open sales and purchase commitments, net, included in payable	32,027		32,027		30,192		30,192
Derivative liabilities - forward contracts included in payable	10		10		—		—
Accounts payable, margin accounts, advances and other payables	52,573		52,573		55,818		55,818
Accrued liabilities	4,985		4,985		6,601		6,601
Payable to parent	7,615		7,615		9,520		9,520

Schedule of fair value, assets and liabilities measured on recurring basis

The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and June 30, 2013 aggregated by the level in the fair value hierarchy within which the measurements fall:



	December 31, 2013
	Quoted Price in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Instruments		Inputs		Inputs
in thousands	(Level 1)		(Level 2)		(Level 3)		Total Balance
Assets:
Inventory	$	160,029	$	—	$	—	$	160,029
Derivative assets — open sales and purchase commitments, net	3,293		—		—		3,293
Derivative assets — futures contracts	10,921		—		—		10,921
Derivative assets — forward contracts	4,933		—		—		4,933
Total assets valued at fair value	$	179,176	$	—	$	—	$	179,176
Liabilities:
Liability on borrowed metals	11,226		—		—		11,226
Obligation under product financing arrangement	25,506		—		—		25,506
Liability on margin accounts	6,469		—		—		6,469
Derivative liabilities — open sales and purchase commitments, net	32,027		—		—		32,027
Derivative liabilities — forward contracts	10		—		—		10
Total liabilities, valued at fair value	$	75,238	$	—	$	—	$	75,238



	June 30, 2013
	Quoted Price in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Instruments		Inputs		Inputs
in thousands	(Level 1)		(Level 2)		(Level 3)		Total Balance
Assets:
Inventory	$	162,378	$	—	$	—	$	162,378
Derivative assets — futures contracts	14,967		—		—		14,967
Derivative assets — forward contracts	471		—		—		471
Total assets, valued at fair value	$	177,816	$	—	$	—	$	177,816
Liabilities:
Liability on borrowed metals	$	20,117	$	—	$	—	$	20,117
Obligation under product financing arrangement	38,554		—		—		38,554
Liability on margin accounts	6,636		—		—		6,636
Derivative liabilities — open sales and purchase commitments, net	30,192		—		—		30,192
Total liabilities valued at fair value	$	95,499	$	—	$	—	$	95,499

Schedule of earnings per share

A reconciliation of basic and diluted shares is as follows:



	Three Months Ended		Six Months Ended
in thousands	December 31, 2013	December 31, 2012	December 31, 2013	December 31, 2012

Basic weighted average shares outstanding (1)	7,729	7,657	7,729	7,926
Effect of common stock equivalents — stock options and stock issuable under employee compensation plans	156	52	157	52
Diluted weighted average shares outstanding	7,886	7,709	7,886	7,978


(1)	Basic weighted average shares outstanding include the effect of vested but unissued restricted stock grants.

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15

-Subparagraph b-d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 18

-Subparagraph c(2), d, e, f

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-Subparagraph a, c(1), c(2), c(3), d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 10

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 12

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13476-108611

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 30

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 14

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 45

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 19

-Subparagraph a, b, c(1), d(1)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Tabular disclosure of the nature of a concentration, a benchmark to which it is compared, and the percentage that the risk is to the benchmark.

+ References + Details