Note 15: Margin Loan

During the three months ended March 31, 2022, the Company borrowed an additional $59.6 million from its investment margin account and repaid $8.2 million with cash received from sales and/or redemptions of its marketable securities. The borrowed amounts were used to finance the Company’s additional investments in YFE and the closing of its 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 $13.6 million as of March 31, 2022. The Company incurred interest expense of $21,846 during the three months ended March 31, 2022. 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 condensed consolidated balance sheets. The Company has the ability to borrow up to 66% of the balance held in marketable securities, with the option to increase its borrowing capacity, if needed. As of March 31, 2022, the outstanding balance of the margin loan was $57.8 million, or 57% of the balance held in marketable securities.