Annual report pursuant to Section 13 and 15(d)

Margin Loan

Margin Loan
12 Months Ended
Dec. 31, 2021
Disclosure Margin Loan Abstract  
Margin Loan

Note 18: Margin Loan


During December 2021, the Company borrowed an aggregate amount of $6.4 million from its investment margin account with the custodian of the Company’s marketable debt security investment account. The borrowed amounts were used to finance the Company’s investments in YFE and the future closing of its pending acquisition of WOW, in each case pledging certain of its marketable securities as collateral. The interest rate for these investment margin account borrowings fluctuates based on the Federal Funds Rate plus 0.65% with interest only payable monthly. The weighted average interest rate was 0.72% and the average balance of the borrowings was $5.9 million as of December 31, 2021. The interest incurred as of December 31, 2021 was immaterial. The investment margin account borrowings do not mature but are payable on demand as the custodian can issue a margin call at any time, therefore the margin loan is recorded as a current liability on the Company’s consolidated balance sheets. As of December 31, 2021, the Company had the ability to borrow up to 66% of the balance held in marketable securities, with the option to increase its borrowing capacity, if needed.