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)

9 Months Ended

Mar. 31, 2014

Schedules of concentration of risk, by risk factor

Customers providing 10 percent or more of the Company's revenues for the three and nine months ended March 31, 2014 and 2013 are listed below:



	Three Months Ended								Nine Months Ended
	March 31, 2014				March 31, 2013				March 31, 2014				March 31, 2013

in thousands	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent
Total revenue	$	1,581,547	100.0	%	$	1,833,454	100.0	%	$	4,566,179	100.0	%	$	5,150,050	100.0	%
Customer concentrations
Royal Canadian Mint	$	118,442	7.5	%	$	231,272	12.6	%	$	323,728	7.1	%	$	497,646	9.7	%
HSBC Bank USA	454,899		28.8		301,644		16.5		1,160,592		25.4		559,611		10.9
Johnson Matthey	11,526		0.7		39,988		2.1		68,123		1.5		759,214		14.7
Total	$	584,867	37.0	%	$	572,904	31.2	%	$	1,552,443	34.0	%	$	1,816,471	35.3	%

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 March 31, 2014 and June 30, 2013, respectively, are listed below:



	March 31, 2014				June 30, 2013

in thousands	Amount		Percent		Amount		Percent
Total accounts receivable, net (without secured loans)	$	31,957	100.0	%	$	59,028	100.0	%

United States Mint	$	10,234	32.0	%	$	44,185	74.9	%
Royal Canadian Mint	6,837		21.4		8,593		14.6
Total	$	17,071	53.4	%	$	52,778	89.5	%

Customers providing 10 percent or more of the Company's secured loans as of March 31, 2014 and June 30, 2013, respectively, are listed below:



	March 31, 2014				June 30, 2013

in thousands	Amount		Percent		Amount		Percent
Total secured loans, net	$	31,861	100.0	%	$	35,585	100.0	%

Customer A	$	—	—	%	$	15,800	44.4	%
Customer B	2,346		7.4		3,659		10.3
Customer C	4,200		13.1		2,700		7.6
Total	$	6,546	20.5	%	$	22,159	62.3	%

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 as of March 31, 2014 and June 30, 2013.



	March 31, 2014				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	$	7,873	$	7,873	$	21,565	$	21,565
Receivables, advances receivables and secured loans	63,788		63,788		94,509		94,509
Derivative assets - open sales and purchase commitments, net, included in receivable	2,245		2,245		—		—
Derivative assets - futures contracts included in receivable	5,741		5,741		14,967		14,967
Derivative assets - forward contracts included in receivable	9,813		9,813		471		471

Financial liabilities:
Lines of credit	$	119,800	$	119,800	$	95,000	$	95,000
Liability for borrowed metals	8,620		8,620		20,117		20,117
Product financing obligation	49,684		49,684		38,554		38,554
Obligation to repurchase common stock	2,198		2,198		—		—
Derivative liabilities - open sales and purchase commitments, net, included in payable	10,621		10,621		30,192		30,192
Derivative liabilities - futures contracts included in payables	716		716		—		—
Derivative liabilities - forward foreign currency exchange contracts, included in payable	2		2		—		—
Accounts payable, margin accounts, advances and other payables	48,707		48,707		55,818		55,818
Accrued liabilities	5,904		5,904		6,601		6,601
Payable to Former Parent	5,291		5,291		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 March 31, 2014 and June 30, 2013 aggregated by the level in the fair value hierarchy within which the measurements fall:



	March 31, 2014
	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 ⁽¹⁾	$	191,997	$	—	$	—	$	191,997
Derivative assets — open sales and purchase commitments, net	2,245		—		—		2,245
Derivative assets — futures contracts	5,741		—		—		5,741
Derivative assets — forward contracts	9,813		—		—		9,813
Total assets valued at fair value	$	209,796	$	—	$	—	$	209,796
Liabilities:
Liability on borrowed metals	$	8,620	$	—	$	—	$	8,620
Obligation under product financing arrangement	49,684		—		—		49,684
Liability on margin accounts	7,914		—		—		7,914
Derivative liabilities — open sales and purchase commitments, net	10,621		—		—		10,621
Derivative liabilities — forward contracts	716		—		—		716
Derivative liabilities - forward foreign currency exchange contracts	2		—		—		2
Total liabilities, valued at fair value	$	77,557	$	—	$	—	$	77,557

____________________

(1) = Commemorative coin inventory totaling $1.8 million is held at lower of cost or market and is thus excluded from this table.



	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		Nine Months Ended
in thousands	March 31, 2014	March 31, 2013	March 31, 2014	March 31, 2013

Basic weighted average shares outstanding ⁽¹⁾	7,449	7,660	7,703	7,839
Effect of common stock equivalents — stock options and stock issuable under employee compensation plans	66	64	46	52
Diluted weighted average shares outstanding	7,515	7,724	7,749	7,891

____________________

(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

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-Name Statement of Financial Accounting Standard (FAS)

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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

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+ 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.

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