| Schedule of other income expense, net |
| Schedule of other income expense, net |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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| Interest Expense (a) |
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$ |
(176 |
) |
|
$ |
(672 |
) |
|
$ |
(625 |
) |
|
$ |
(2,777 |
) |
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| Warrant Incentive Expense (b) |
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– |
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|
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– |
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– |
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|
(12,664 |
) |
| Gain on Revaluation of Warrants (c) |
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3 |
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2,797 |
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|
63 |
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|
8,999 |
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| Gain (Loss) on Revaluation of Equity Investment in YFE (d) |
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|
(461 |
) |
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|
(2,325 |
) |
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|
(1,342 |
) |
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1,102 |
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| Realized Loss on Marketable Securities Investments (e) |
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(148 |
) |
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(1,897 |
) |
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|
(505 |
) |
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|
(4,154 |
) |
| Gain (Loss) on Foreign Exchange (f) |
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|
999 |
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|
(637 |
) |
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19 |
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|
(282 |
) |
| Interest Income (g) |
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|
40 |
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|
95 |
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|
135 |
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|
563 |
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| Loss on Early Lease Termination (h) |
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– |
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|
|
(232 |
) |
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– |
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|
|
(232 |
) |
| Finance Lease Interest Expense (i) |
|
|
(20 |
) |
|
|
(48 |
) |
|
|
(74 |
) |
|
|
(152 |
) |
| Other (j) |
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|
189 |
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|
|
11 |
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|
723 |
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|
37 |
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| Other Income (Expense), net |
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$ |
602 |
|
|
$ |
(2,236 |
) |
|
$ |
(981 |
) |
|
$ |
(6,783 |
) |
Three Months and Nine Months Ended September 30, 2024
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(a) |
Interest Expense during the three and nine months ended September 30, 2024 primarily consisted of $0.2 million and $0.6 million, respectively, primarily due to interest incurred on production facilities and bank indebtedness. |
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(b) |
There was no warrant incentive expense in 2024. |
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(c) |
The Gain on Revaluation of Warrants during the three and nine months ended September 30, 2024 is primarily related to the changes in fair value of the remaining outstanding warrant classified as a liability due to decreases in market price. |
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(d) |
As accounted for using the fair value option, the loss on the YFE investment revaluation during the three and nine months ended September 30, 2024, excluding the impact of foreign currency recorded separately, is a result of a decrease in YFE’s stock price as of September 30, 2024. |
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(e) |
The Realized Loss on Marketable Securities Investments during the three and nine months ended September 30, 2024 reflects the loss that will not be recovered from the investments due to selling securities prior to maturity. |
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(f) |
The Gain on Foreign Exchange during the three and nine months ended September 30, 2024 primarily related to the revaluation of the YFE investment, resulting in a gain of $0.8 million and $0.2 million, respectively due to the EURO fluctuation to USD as compared to the prior reporting period. The remaining balance is related to remeasurements of transactions made in foreign currencies that are outstanding as of the condensed consolidated balance sheet date. |
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(g) |
Interest Income during the three and nine months ended September 30, 2024 primarily consisted of interest income, net of premium amortization expense, recorded for the investments in marketable securities. |
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(h) |
There was no gain or loss on lease termination in 2024. |
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(i) |
The Finance Lease Interest Expense during the three and nine months ended September 30, 2024 represents the interest portion of the finance lease obligations for equipment purchased under an equipment lease line. |
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(j) |
Other during the three and nine months ended September 30, 2024 is primarily related to late fees from select clients on a payment plan. |
Three Months and Nine Months Ended September 30, 2023
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(a) |
Interest expense during the three and nine months ended September 30, 2023 primarily consisted of $0.2 million and $1.5 million of interest incurred on the margin loan, respectively, and $0.5 million and $1.3 million, respectively, of interest incurred on production facilities loans and bank indebtedness. |
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(b) |
The Warrant Incentive Expense is related to the $12.7 million fair value of Exchange Warrants that were issued during the three months ended June 30, 2023 to certain existing warrant holders in exchange for previously issued outstanding warrants. |
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(c) |
The gain on warrant revaluation during the three months ended September 30, 2023 is primarily related to the $2.7 million change in fair value as of the end of the current reporting period of the Exchange Warrants and SEG Warrants compared to the fair value as of the end of the prior reporting period due to a decrease in market price. The gain on warrant revaluation during the nine months ended September 30, 2023 is primarily related to the $8.8 million change in fair value as of the end of the current reporting period of the Exchange Warrants and SEG Warrants compared to the fair value as of the issuance date due to a decrease in market price. |
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(d) |
As accounted for using the fair value option, the gain or loss on the YFE investment revaluation, excluding the impact of foreign currency recorded separately, is a result of the increases or decreases in YFE’s stock price as of the current reporting period when compared to the prior reporting period. |
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(e) |
The net realized loss on marketable securities reflects the loss that will not be recovered from the investments due to selling securities and issuers' prepayments of principals on certain mortgage-backed securities. |
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(f) |
The loss on foreign currency exchange during the three and nine months ended September 30, 2023 primarily related to the EURO weakening against the USD when compared to the prior reporting period. |
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(g) |
Interest Income during the three and nine months ended September 30, 2023 primarily consisted of interest income of $0.1 million and $0.4 million, net of premium amortization expense, recorded for the investments in marketable securities, respectively. |
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(h) |
The loss on early termination of lease is due to early termination of the Lyndhurst, NJ office lease, effective August 1, 2023. The loss includes fees of $0.1 million and the write-down of assets and liabilities resulting in net, $0.1 million of loss. |
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(i) |
The finance lease interest expense represents the interest portion of the finance lease obligations for equipment purchased under an equipment lease line. |
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(j) |
Other during the three and nine months ended September 30, 2023 is primarily related to late fees from select clients on a payment plan. |
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