Quarterly report pursuant to Section 13 or 15(d)

Margin Loan

v3.23.3
Margin Loan
 9 Months Ended
Sep. 30, 2023
Debt Instruments [Abstract]  
Margin Loan Margin LoanThe Company borrowed an additional $17.6 million from its investment margin account during the nine months ended September 30, 2023 and repaid $76.2 million primarily with cash received from sales and maturities of marketable securities. During the nine months ended September 30, 2023, the borrowed amounts were primarily used for operational costs. The interest rates for the borrowings fluctuate based on the Fed Funds Upper Target plus 0.60%. The weighted average interest rates were 1.13% and 1.66% on average margin loan balances of $34.0 million and $27.1 million as of September 30, 2023 and December 31, 2022, respectively. The Company incurred interest expense on the loan of $0.2 million and $0.4 million during the three months ended September 30, 2023 and September 30, 2022, respectively, and $1.5 million and $0.6 million during the nine months ended September 30, 2023 and September 30, 2022, respectively. The investment margin account borrowings do not mature but are collateralized by the marketable securities held by the same custodian and the custodian can issue a margin call at any time, effecting a payable on demand loan. Due to the call option, the margin loan is recorded as a current liability on the Company’s condensed consolidated balance sheets. As of September 30, 2023 and December 31, 2022, the Company’s margin loan balance was $2.2 million and $60.8 million, respectively.