Delaware |
13-3487784 |
|
(State or other jurisdiction of incorporation or organization) |
(IRS Employer Identification No.) |
|
250 West 34 th Street3 rd FloorNew York, New York |
10119 |
|
(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
||
Common Stock, $0.01 par value Preferred Stock Purchase Rights |
WT |
The New York Stock Exchange The New York Stock Exchange |
Large accelerated filer |
☒ |
Accelerated filer |
☐ |
|||
Non-accelerated filer |
☐ |
Smaller reporting company |
☐ |
|||
Emerging growth company |
☐ |
PART I: FINANCIAL INFORMATION | 4 | |||||
ITEM 1. |
4 | |||||
ITEM 2. |
37 | |||||
ITEM 3. |
57 | |||||
ITEM 4. |
58 | |||||
PART II: OTHER INFORMATION | 59 | |||||
ITEM 1. |
59 | |||||
ITEM 1A. |
59 | |||||
ITEM 2. |
59 | |||||
ITEM 3. |
59 | |||||
ITEM 4. |
59 | |||||
ITEM 5. |
60 | |||||
ITEM 6. |
61 |
• | anticipated trends, conditions and investor sentiment in the global markets and exchange-traded products, or ETPs; |
• | anticipated levels of inflows into and outflows out of our ETPs; |
• | our ability to deliver favorable rates of return to investors; |
• | competition in our business; |
• | whether we will experience future growth; |
• | our ability to develop new products and services and their potential for success; |
• | our ability to maintain current vendors or find new vendors to provide services to us at favorable costs; |
• | our ability to successfully implement our strategy relating to digital assets and blockchain-enabled financial services, including WisdomTree Prime ™ , and achieve its objectives; |
• | our ability to successfully operate and expand our business in non-U.S. markets; |
• | the effect of laws and regulations that apply to our business; and |
• | actions of activist stockholders. |
ITEM 1. |
FINANCIAL STATEMENTS |
June 30, 2023 |
December 31, 2022 |
|||||||
Assets |
(unaudited) |
|||||||
Current assets: |
||||||||
Cash and cash equivalents (Note 3) |
$ | 83,735 | $ | 132,101 | ||||
Financial instruments owned, at fair value (including $38,451 and $25,283 invested in WisdomTree products at June 30, 2023 and December 31, 2022, respectively) (Note 5) |
65,492 | 126,239 | ||||||
Accounts receivable (including $32,642 and $24,139 due from related parties at June 30, 2023 and December 31, 2022, respectively) |
34,208 | 30,549 | ||||||
Prepaid expenses |
8,161 | 4,684 | ||||||
Income taxes receivable |
894 | — | ||||||
Other current assets |
376 | 390 | ||||||
|
|
|
|
|||||
Total current assets |
192,866 | 293,963 | ||||||
Fixed assets, net |
487 | 544 | ||||||
Indemnification receivable (Note 20) |
— | 1,353 | ||||||
Securities held-to-maturity |
245 | 259 | ||||||
Deferred tax assets, net (Note 20) |
7,626 | 10,536 | ||||||
Investments (Note 7) |
40,002 | 35,721 | | |||||
Right of use assets—operating leases (Note 12) |
849 | 1,449 | ||||||
Goodwill (Note 22) |
86,841 | 85,856 | ||||||
Intangible assets, net (Note 22) |
604,407 | 603,567 | ||||||
Other noncurrent assets |
454 | |
571 | |||||
|
|
|
|
|||||
Total assets |
$ | 933,777 | $ | 1,033,819 | ||||
|
|
|
|
|||||
Liabilities and stockholders’ equity |
||||||||
Liabilities |
||||||||
Current liabilities: |
||||||||
Fund management and administration payable |
$ | 30,635 | $ | 36,521 | ||||
Compensation and benefits payable |
17,800 | 24,121 | ||||||
Operating lease liabilities (Note 12) |
849 | 1,125 | ||||||
Convertible notes—current (Note 10) |
— | 59,197 | ||||||
Deferred consideration—gold payments (Note 9) |
— | 16,796 | ||||||
Income taxes payable |
— | 1,599 | ||||||
Accounts payable and other liabilities |
18,997 | 9,075 | ||||||
|
|
|
|
|||||
Total current liabilities |
68,281 | 148,434 | ||||||
Convertible notes (Note 10) |
274,140 | 262,019 | ||||||
Deferred consideration—gold payments (Note 9) |
— | 183,494 | ||||||
Operating lease liabilities (Note 12) |
— | 339 | ||||||
Other noncurrent liabilities (Note 20) |
— | 1,353 | ||||||
|
|
|
|
|||||
Total liabilities |
342,421 | 595,639 | ||||||
Preferred stock—Series A Non-Voting Convertible, par value $0.01; 14.750 shares authorized, issued and outstanding; redemption value of $103,480 and $77,969 at June 30, 2023 and December 31, 2022, respectively) (Note 11) |
132,569 | 132,569 | ||||||
|
|
|
|
|||||
Contingencies (Note 13) |
||||||||
Stockholders’ equity |
||||||||
Preferred stock, par value $0.01; 2,000 shares authorized |
— | — | ||||||
Preferred stock—Series C Non-Voting Convertible, par value $0.01; 13.087 shares authorized, issued and outstanding |
— | — | ||||||
Common stock, par value $0.01; 400,000 shares authorized; issued and outstanding: 150,343 and 146,517 at June 30, 2023 and December 31, 2022, respectively |
1,503 | 1,465 | ||||||
Additional paid-in capital |
383,621 | 291,847 | ||||||
Accumulated other comprehensive loss |
(693) | (1,420) | ||||||
Retained earnings |
74,356 | 13,719 | ||||||
|
|
|
|
|||||
Total stockholders’ equity |
458,787 | 305,611 | ||||||
|
|
|
|
|||||
Total liabilities and stockholders’ equity |
$ | 933,777 | $ | 1,033,819 | ||||
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Operating Revenues: |
||||||||||||||||
Advisory fees |
$ |
82,004 |
$ |
75,586 |
$ |
159,641 |
$ |
152,103 |
||||||||
Other income |
3,720 |
1,667 |
8,127 |
3,518 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
85,724 |
77,253 |
167,768 |
155,621 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating Expenses: |
||||||||||||||||
Compensation and benefits |
26,319 |
24,565 |
53,717 |
49,352 |
||||||||||||
Fund management and administration |
17,727 |
16,076 |
34,880 |
31,570 |
||||||||||||
Marketing and advertising |
4,465 |
3,894 |
8,472 |
7,917 |
||||||||||||
Sales and business development |
3,326 |
3,131 |
6,320 |
5,740 |
||||||||||||
Contractual gold payments (Note 9) |
1,583 |
4,446 |
6,069 |
8,896 |
||||||||||||
Professional fees |
8,334 |
4,308 |
12,049 |
8,767 |
||||||||||||
Occupancy, communications and equipment |
1,172 |
1,049 |
2,273 |
1,802 |
||||||||||||
Depreciation and amortization |
121 |
53 |
230 |
100 |
||||||||||||
Third-party distribution fees |
1,881 |
1,818 |
4,134 |
4,030 |
||||||||||||
Other |
2,615 |
2,109 |
4,872 |
3,954 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
67,543 |
61,449 |
133,016 |
122,128 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income |
18,181 |
15,804 |
34,752 |
33,493 |
||||||||||||
Other Income/(Expenses): |
||||||||||||||||
Interest expense |
(4,021) |
(3,733) |
(8,023) |
(7,465) |
||||||||||||
Gain/(loss) on revaluation/termination of deferred consideration—gold payments (Note 9) |
41,361 |
2,311 |
61,953 |
(14,707) |
||||||||||||
Interest income |
1,000 |
770 |
2,083 |
1,564 |
||||||||||||
Impairments (Note 7) |
— |
— |
(4,900) |
— |
||||||||||||
Loss on extinguishment of convertible notes (Note 10) |
— |
— |
(9,721) |
— |
||||||||||||
Other gains and losses, net |
1,286 |
(4,474) |
(721) |
(29,181) |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income/(loss) before income taxes |
57,807 |
10,678 |
75,423 |
(16,296) |
||||||||||||
Income tax expense/(benefit) |
3,555 |
2,673 |
4,938 |
(14,040) |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income/(loss) |
$ |
54,252 |
$ |
8,005 |
$ |
70,485 |
$ |
(2,256) |
||||||||
|
|
|
|
|
|
|
|
|||||||||
Earnings/(loss) per share—basic |
$ |
0.32 |
$ |
0.05 |
$ |
0.43 |
$
|
(0.02) |
||||||||
|
|
|
|
|
|
|
|
|||||||||
Earnings/(loss) per share—diluted |
$ |
0.32 |
$ |
0.05 |
$ |
0.42 |
$ |
(0.02) |
||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted-average common shares—basic |
144,351 |
143,046 |
144,108 |
142,915 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted-average common shares—diluted |
170,672 |
158,976 |
165,468 |
142,915 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash dividends declared per common share |
$ |
0.03 |
$ |
0.03 |
$ |
0.06 |
$ |
0.06 |
||||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Net income/(loss) |
$ |
54,252 |
$ |
8,005 |
$ |
70,485 |
$ |
(2,256) |
||||||||
Other comprehensive income/(loss) |
||||||||||||||||
Foreign currency translation adjustment, net of income taxes |
261 |
(1,721) |
727 |
(2,207) |
||||||||||||
Other comprehensive income/(loss) |
261 |
(1,721) |
727 |
(2,207) |
||||||||||||
Comprehensive income/(loss) |
$ |
54,513 |
$ |
6,284 |
$ |
71,212 |
$ |
(4,463) |
||||||||
For the Three Months Ended June 30, 2023 |
||||||||||||||||||||||||||||||||
Series C Preferred Stock |
Common Stock |
Additional Paid-In Capital |
Accumulated Other Comprehensive Loss |
Retained Earnings |
Total |
|||||||||||||||||||||||||||
Shares Issued |
Par Value |
Shares Issued |
Par Value |
|||||||||||||||||||||||||||||
Balance—April 1, 2023 |
— |
$ |
— |
149,291 |
$ |
1,493 |
$ |
292,971 |
$ |
(954) |
$ |
25,028 |
$ |
318,538 |
||||||||||||||||||
Shares issued in connection with termination of the deferred consideration—gold payments obligation, net of issuance costs (Note 9) |
13 |
— |
— |
— |
86,801 |
— |
— |
86,801 |
||||||||||||||||||||||||
Restricted stock issued and vesting of restricted stock units, net |
— |
— |
41 |
— |
— |
— |
— |
— |
||||||||||||||||||||||||
Shares issued in connection with convertible notes that matured on June 15, 2023 (Note 10) |
— |
— |
1,037 |
10 |
35 |
— |
— |
45 |
||||||||||||||||||||||||
Shares repurchased |
— |
— |
(26) |
— |
(156) |
— |
— |
(156) |
||||||||||||||||||||||||
Stock-based compensation |
— |
— |
— |
— |
3,970 |
— |
— |
3,970 |
||||||||||||||||||||||||
Other comprehensive income |
— |
— |
— |
— |
— |
261 |
— |
261 |
||||||||||||||||||||||||
Dividends |
— |
— |
— |
— |
— |
— |
(4,924) |
(4,924) |
||||||||||||||||||||||||
Net income |
— |
— |
— |
— |
— |
— |
54,252 |
54,252 |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance—June 30, 2023 |
13 |
$ |
— |
150,343 |
$ |
1,503 |
$ |
383,621 |
$ |
(693) |
$ |
74,356 |
$ |
458,787 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
For the Three Months Ended June 30, 2022 |
||||||||||||||||||||||||||||||||
Series C Preferred Stock |
Common Stock |
Additional Paid-In
Capital |
Accumulated Other Comprehensive Income/(Loss) |
Accumulated Deficit |
Total |
|||||||||||||||||||||||||||
Shares Issued |
Par Value |
Shares Issued |
Par Value |
|||||||||||||||||||||||||||||
Balance—April 1, 2022 |
— |
$ |
— |
146,560 |
$ |
1,466 |
$ |
284,421 |
$ |
196 |
$ |
(32,706) |
$ |
253,377 |
||||||||||||||||||
Restricted stock issued and vesting of restricted stock units, net |
— |
— |
(49) |
(1) |
1 |
— |
— |
— |
||||||||||||||||||||||||
Stock-based compensation |
— |
— |
— |
— |
2,432 |
— |
— |
2,432 |
||||||||||||||||||||||||
Other comprehensive loss |
— |
— |
— |
— |
— |
(1,721) |
— |
(1,721) |
||||||||||||||||||||||||
Dividends |
— |
— |
— |
— |
(4,837) |
— |
— |
(4,837) |
||||||||||||||||||||||||
Net income |
— |
— |
— |
— |
— |
— |
8,005 |
8,005 |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance—June 30, 2022 |
— |
$ |
— |
146,511 |
$ |
1,465 |
$ |
282,017 |
$ |
(1,525) |
$ |
(24,701) |
$ |
257,256 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, 2023 |
||||||||||||||||||||||||||||||||
Series C Preferred Stock |
Common Stock |
Additional Paid-In Capital |
Accumulated Other Comprehensive Loss |
Retained Earnings |
Total |
|||||||||||||||||||||||||||
Shares Issued |
Par Value |
Shares Issued |
Par Value |
|||||||||||||||||||||||||||||
Balance—January 1, 2023 |
— |
$ |
— |
146,517 |
$ |
1,465 |
$ |
291,847 |
$ |
(1,420) |
$ |
13,719 |
$ |
305,611 |
||||||||||||||||||
Shares issued in connection with termination of the deferred consideration—gold payments obligation, net of issuance costs (Note 9) |
13 |
— |
— |
— |
86,801 |
— |
— |
86,801 |
||||||||||||||||||||||||
Restricted stock issued and vesting of restricted stock units, net |
— |
— |
3,420 |
34 |
(34) |
— |
— |
— |
||||||||||||||||||||||||
Shares issued in connection with convertible notes that matured on June 15, 2023 (Note 10) |
— |
— |
1,037 |
10 |
35 |
— |
— |
45 |
||||||||||||||||||||||||
Shares repurchased |
— |
— |
(631) |
(6) |
(3,534) |
— |
— |
(3,540) |
||||||||||||||||||||||||
Stock-based compensation |
— |
— |
— |
— |
8,506 |
— |
— |
8,506 |
||||||||||||||||||||||||
Other comprehensive income |
— |
— |
— |
— |
— |
727 |
— |
727 |
||||||||||||||||||||||||
Dividends |
— |
— |
— |
— |
— |
— |
(9,848) |
(9,848) |
||||||||||||||||||||||||
Net income |
— |
— |
— |
— |
— |
— |
70,485 |
70,485 |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance—June 30, 2023 |
13 |
$ |
— |
150,343 |
$ |
1,503 |
$ |
383,621 |
$ |
(693) |
$ |
74,356 |
$ |
458,787 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
For the Six Months Ended June 30, 2022 |
||||||||||||||||||||||||||||||||
Series C Preferred Stock |
Common Stock |
Additional Paid-In
Capital |
Accumulated Other Comprehensive Income/(Loss) |
Accumulated Deficit |
Total |
|||||||||||||||||||||||||||
Shares Issued |
Par Value |
Shares Issued |
Par Value |
|||||||||||||||||||||||||||||
Balance—January 1, 2022 |
— |
$ |
— |
145,107 |
$ |
1,451 |
$ |
289,736 |
$ |
682 |
$ |
(22,445) |
$ |
269,424 |
||||||||||||||||||
Restricted stock issued and vesting of restricted stock units, net |
— |
— |
1,993 |
20 |
(20) |
— |
— |
— |
||||||||||||||||||||||||
Shares repurchased |
— |
— |
(589) |
(6) |
(3,388) |
— |
— |
(3,394) |
||||||||||||||||||||||||
Stock-based compensation |
— |
— |
— |
— |
5,368 |
— |
— |
5,368 |
||||||||||||||||||||||||
Other comprehensive loss |
— |
— |
— |
— |
— |
(2,207) |
— |
(2,207) |
||||||||||||||||||||||||
Dividends |
— |
— |
— |
— |
(9,679) |
— |
— |
(9,679) |
||||||||||||||||||||||||
Net income |
— |
— |
— |
— |
— |
— |
(2,256) |
(2,256) |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance—June 30, 2022 |
— |
$ |
— |
146,511 |
$ |
1,465 |
$ |
282,017 |
$ |
(1,525) |
$ |
(24,701) |
$ |
257,256 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
||||||||
2023 |
2022 |
|||||||
Cash flows from operating activities: |
||||||||
Net income/(loss) |
$ | 70,485 | $ | (2,256) | ||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: |
||||||||
(Gain)/loss on revaluation/termination of deferred consideration—gold payments |
(61,953) | 14,707 | ||||||
Advisory and license fees paid in gold, other precious metals and cryptocurrency |
(25,692) | (31,511) | ||||||
Loss on extinguishment of convertible notes |
9,721 | — | ||||||
Stock-based compensation |
8,506 | 5,368 | ||||||
Contractual gold payments |
6,069 | 8,896 | ||||||
Impairments |
4,900 | — | ||||||
Deferred income taxes |
2,964 | 3,378 | ||||||
Amortization of issuance costs—convertible notes |
1,069 | 1,293 | ||||||
(Gains)/losses on financial instruments owned, at fair value |
(947) | 9,322 | ||||||
Losses on investments |
819 | — | ||||||
Amortization of right of use asset |
640 | 332 | ||||||
Depreciation and amortization |
230 | 100 | ||||||
Other |
— | 120 | ||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
(5,254) | (3,718) | ||||||
Prepaid expenses |
(3,425) | (3,613) | ||||||
Gold and other precious metals |
18,441 | 23,743 | ||||||
Other assets |
347 | (241) | ||||||
Intangibles—software development |
(946) | (724) | ||||||
Fund management and administration payable |
6,419 | 423 |
|
|||||
Compensation and benefits payable |
(18,941) | (13,537) | ||||||
Income taxes payable |
(2,523) | (5,235) | ||||||
Operating lease liabilities |
(652) | (348) | ||||||
Accounts payable and other liabilities |
9,752 | 2,043 | ||||||
Net cash provided by operating activities |
20,029 | 8,542 | ||||||
Cash flows from investing activities: |
||||||||
Purchase of financial instruments owned, at fair value |
(40,532) | (32,488) | ||||||
Purchase of investments |
(10,000) | (11,863) | ||||||
Acquisition of Securrency Transfers, Inc. (net of cash acquired) |
(985) | — | ||||||
Purchase of fixed assets |
(58) | (205) | ||||||
Proceeds from the sale of financial instruments owned, at fair value |
102,020 | 21,455 | ||||||
Receipt of contingent consideration – Sale of Canadian ETF business |
1,477 | — | ||||||
Proceeds from held-to-maturity |
14 | 31 | ||||||
Net cash provided by/(used in) investing activities |
51,936 | (23,070) | ||||||
Cash flows from financing activities: |
||||||||
Repurchase and maturity of convertible notes (Note 10) |
(184,272) | — | ||||||
Termination of deferred consideration—gold payments |
(50,005) | — | ||||||
Dividends paid |
(9,647) | (9,679) | ||||||
Issuance costs—Convertible notes |
(3,548) | — | ||||||
Shares repurchased |
(3,540) | (3,394) | ||||||
Issuance costs—Series C Preferred Stock |
(97) | — | ||||||
Proceeds from the issuance of convertible notes (Note 10) |
130,000 | — | ||||||
Net cash used in financing activities |
(121,109) | (13,073) | ||||||
Increase/(decrease) in cash flow due to changes in foreign exchange rate |
778 | (3,372) | ||||||
Net decrease in cash and cash equivalents |
(48,366) | (30,973) | ||||||
Cash and cash equivalents—beginning of year |
132,101 | 140,709 | ||||||
Cash and cash equivalents—end of period |
$ |
83,735 | $ |
109,736 |
|
|||
Supplemental disclosure of cash flow information: |
||||||||
Cash paid for income taxes |
$ | 5,900 | $ | 7,724 | ||||
Cash paid for interest |
$ | 4,514 | $ | 6,156 | ||||
• | WisdomTree Asset Management, Inc. non-consolidated Delaware statutory trust registered with the SEC as an open-end management investment company. The Company has licensed to WTT the use of certain of its own indexes on an exclusive basis for the WisdomTree ETFs in the U.S. |
• | WisdomTree Management Jersey Limited leveraged-and-inverse |
• | WisdomTree Multi Asset Management Limited non-consolidated public limited company domiciled in Ireland. |
• | WisdomTree Management Limited non-consolidated public limited company domiciled in Ireland. |
• | WisdomTree UK Limited |
• | WisdomTree Europe Limited |
• | WisdomTree Ireland Limited |
• | WisdomTree Digital Commodity Services, LLC |
• | WisdomTree Digital Management, Inc. non-consolidated Delaware statutory trust registered with the SEC as an open-end management investment company. Each Digital Fund uses blockchain technology to maintain a secondary record of its shares on one or more blockchains (e.g., Stellar or Ethereum), but does not directly or indirectly invest in any assets that rely on blockchain technology, such as cryptocurrencies. |
• | WisdomTree Digital Movement, Inc ™ to facilitate such activity. |
• | WisdomTree Securities, Inc |
• | WisdomTree Transfers, Inc. is a New York based transfer agent registered with the SEC, providing transfer agency services for the Digital Funds. The transfer agent maintains the official record of share ownership in book entry form and reconciles the official record with the secondary record of ownership of shares on one or more blockchains. |
Equipment |
3 to 5 years | |||
Internally-developed software |
3 years |
June 30, 2023 |
||||||||||||||||
Total |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||
Assets: |
||||||||||||||||
Recurring fair value measurements: |
||||||||||||||||
Cash equivalents |
$ |
195 |
$ |
195 |
$ |
— |
$ |
— |
||||||||
Financial instruments owned, at fair value: |
||||||||||||||||
ETFs |
26,509 |
26,509 |
— |
— |
||||||||||||
Pass-through GSEs |
26,107 |
— |
26,107 |
— |
||||||||||||
Other assets—seed capital (WisdomTree Digital Funds): |
||||||||||||||||
U.S. treasuries |
4,794 |
4,794 |
— |
— |
||||||||||||
Equities |
5,514 |
5,514 |
— |
— |
||||||||||||
Fixed income |
1,908 |
— |
1,908 |
— |
||||||||||||
Other |
660 |
— |
660 |
— |
||||||||||||
Investments in Convertible Notes (Note 7): |
||||||||||||||||
Securrency, Inc.—convertible note |
13,836 |
— |
— |
13,836 |
||||||||||||
Securrency, Inc.—secured convertible note |
8,887 |
— |
— |
8,887 |
||||||||||||
Fnality International Limited—convertible note |
7,879 |
— |
— |
7,879 |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Total |
$ |
96,289 |
$ |
37,012 |
$ |
28,675 |
$ |
30,602 |
||||||||
|
|
|
|
|
|
|
|
|
June 30, 2023 |
||||||||||||||||
Total |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||
Non-recurring fair value measurements: |
||||||||||||||||
Securrency, Inc.—Series A convertible preferred stock (1)
|
$ |
3,588 |
$ |
— |
$ |
— |
$ |
3,588 |
||||||||
|
|
|
|
|
|
|
|
|
(1) |
Fair value determined on March 31, 2023. |
December 31, 2022 |
||||||||||||||||
Total |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||
Assets: |
||||||||||||||||
Recurring fair value measurements: |
||||||||||||||||
Cash equivalents |
$ | 930 | $ | 930 | $ | — | $ | — | ||||||||
Financial instruments owned, at fair value |
||||||||||||||||
ETFs |
23,772 | 23,772 | — | — | ||||||||||||
U.S. treasuries |
2,980 | 2,980 | — | — | ||||||||||||
Pass-through GSEs |
96,837 | 23,290 | 73,547 | — | ||||||||||||
Corporate bonds |
885 | — | 885 | — | ||||||||||||
Other assets—seed capital (WisdomTree Digital Funds) |
1,765 | — | 1,765 | — | ||||||||||||
Investments in Convertible Notes (Note 7) |
||||||||||||||||
Securrency, Inc.—convertible note |
14,500 | — | — | 14,500 | ||||||||||||
Fnality International Limited—convertible note |
6,921 | — | — | 6,921 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Total |
$ | 148,590 | $ | 50,972 | $ | 76,197 | $ | 21,421 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-recurring fair value measurements: |
||||||||||||||||
Other investments (1)
|
$ | 312 | $ | — | $ | — | $ | 312 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Liabilities: |
||||||||||||||||
Recurring fair value measurements: |
||||||||||||||||
Deferred consideration—gold payments (Note 9) |
$ | 200,290 | $ | — | $ | — | $ |
200,290 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
(1) |
Fair value determined on May 10, 2022. |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Investments in Convertible Notes (Note 7) |
||||||||||||||||
Beginning balance |
$ | 17,502 | $ | 6,700 | $ | 21,421 | $ | — | ||||||||
Purchases |
10,000 | 5,000 | 10,000 | 11,863 | ||||||||||||
Net unrealized gains/(losses) (
1)
|
3,100 | 12 | (819) | (151) | ||||||||||||
Ending balance |
$ | 30,602 | $ | 11,712 | $ | 30,602 | $ | 11,712 | ||||||||
Deferred Consideration (Note 9) |
||||||||||||||||
Beginning balance |
$ | 179,831 | $ | 245,177 | $ | 200,290 | $ | 228,062 | ||||||||
Net realized losses (2)
|
1,583 | 4,446 | 6,069 | 8,896 | ||||||||||||
Net unrealized (gains)/losses (3)
|
(41,361) | (2,311) | (61,953) | 14,707 | ||||||||||||
Settlements |
(140,053) | (4,545) | (144,406) | (8,898) | ||||||||||||
Ending balance |
$ | — | $ | 242,767 | $ | — | $ | 242,767 | ||||||||
(1) |
Recorded in other gains and losses, net in the Consolidated Statements of Operations. |
(2) |
Recorded as contractual gold payments expense in the Consolidated Statements of Operations. |
June 30, 2023 |
December 31, 2022 |
|||||||
Financial instruments owned |
||||||||
Trading securities |
$ |
52,616 |
$ |
124,474 |
||||
Other assets—seed capital (WisdomTree Digital Funds) |
12,876 |
1,765 |
||||||
$ |
65,492 |
$ |
126,239 |
|||||
June 30, 2023 |
December 31, 2022 |
|||||||
Debt instruments: Pass-through GSEs (amortized cost) |
$ | 245 | $ | 259 |
|
|||
June 30, 2023 |
December 31, 2022 |
|||||||
Cost/amortized cost |
$ | 245 |
|
$ | 259 | |||
Gross unrealized losses |
(19) | (20) | ||||||
Fair value |
$ | 226 | $ | 239 | ||||
June 30, 2023 |
December 31, 2022 |
|||||||
Due within one year |
$ | — | $ | — | ||||
Due one year through five years |
— | — | ||||||
Due five years through ten years |
24 | 27 | ||||||
Due over ten years |
221 | 232 | ||||||
Total |
$ | 245 | $ | 259 | ||||
June 30, 2023 |
December 31, 2022 |
|||||||||||||||
Carrying Value |
Cost |
Carrying Value |
Cost |
|||||||||||||
Securrency, Inc.—Series A convertible preferred stock |
$
|
3,588 |
$
|
8,112 |
$
|
8,488 |
$
|
8,112 |
||||||||
Securrency, Inc.—Series B convertible preferred stock |
5,500 |
5,500 |
5,500 |
5,500 |
||||||||||||
Securrency, Inc.—secured convertible note |
8,887 |
10,000 |
— |
— |
||||||||||||
Securrency, Inc.—convertible note |
13,836 |
15,000 |
14,500 |
15,000 |
||||||||||||
Subtotal—Securrency, Inc. |
$
|
31,811 |
$
|
38,612 |
$
|
28,488 |
$
|
28,612 |
||||||||
Fnality International Limited—convertible note |
7,879 |
6,863 |
6,921 |
6,863 |
||||||||||||
Other investments |
312 |
250 |
312 |
250 |
||||||||||||
$
|
40,002 |
$
|
45,725 |
$
|
35,721 |
$
|
35,725 |
|||||||||
March 31, 2023 |
||||
Conversion upon a future equity financing |
33.3 | % | ||
Redemption upon a corporate transaction |
33.3 | % | ||
Default |
33.4 | % |
June 30, 2023 |
||
Conversion of note upon a future equity financing |
50% | |
Redemption of note upon a corporate transaction |
30% | |
Default |
20% | |
Time to potential outcome (in years) |
0.31 |
June 30, 2023 |
December 31, 2022 |
|||||||
Conversion of notes upon a future equity financing |
50% | 60% | ||||||
Redemption of notes upon a corporate transaction |
30% | 25% | ||||||
Default |
20% | 15% | ||||||
Time to potential outcome (in years) |
0.31 | 0.33 |
June 30, 2023 |
December 31, 2022 |
|||||||
Conversion of note upon a future financing |
95% | 85% | ||||||
Redemption of note upon a change of control |
0% | 10% | ||||||
Default |
5% | 5% | ||||||
Time to potential outcome (in years) |
0.08 | 0.25 |
June 30, 2023 |
December 31, 2022 |
|||||||
Equipment |
$ | 1,037 | $ | 962 | ||||
Less: accumulated depreciation |
(550) | (418) | ||||||
Total |
$ | 487 | $ | 544 | ||||
June 30, 2023 |
December 31, 2022 |
Forward-looking gold price (low)—per ounce |
n/a | $ | 1,858 | |||||
Forward-looking gold price (high)—per ounce |
n/a | $ | 3,126 | |||||
Forward-looking gold price (weighted average)—per |
n/a | $ | 2,237 | |||||
Discount rate |
n/a | 11.0% | ||||||
Perpetual growth rate |
n/a | 1.3% |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Contractual gold payments |
$ | 1,583 | $ | 4,446 | $ | 6,069 | $ | 8,896 | ||||||||
Contractual gold payments—gold ounces paid |
792 | 2,375 | 3167 | 4,750 | ||||||||||||
Gain/(loss) on revaluation/termination of deferred payments |
$ | 41,361 | $ | 2,311 | $ | 61,953 | $ | (14,707 | ) |
2023 Notes |
2021 Notes |
|||||||
Principal outstanding |
$130,000 | $150,000 | ||||||
Maturity date (unless earlier converted, repurchased or redeemed) |
August 15, 2028 | June 15, 2026 | ||||||
Interest rate |
5.75% | 3.25% | ||||||
Conversion price |
$9.54 | $11.04 | ||||||
Conversion rate |
104.8658 | 90.5797 | ||||||
Redemption price |
$12.40 | $14.35 |
● |
Interest rate: |
●
|
Conversion price: |
●
|
Conversion: |
●
|
Cash settlement of principal amount: |
●
|
Redemption price: th scheduled trading day immediately preceding the maturity date, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price for the respective Convertible Notes then in effect for at least 20 trading days, including the trading day immediately preceding the date on which the Company provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption, at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding the redemption date. No sinking fund is provided for the Convertible Notes. |
●
|
Limited investor put rights: |
●
|
Conversion rate increase in certain customary circumstances: |
●
|
Seniority and Security: Non-Voting Convertible Preferred Stock (Note 11). |
June 30, 2023 |
December 31, 2022 |
|||||||||||||||||||||||
2023 Notes |
2021 Notes |
Total |
2021 Notes |
2020 Notes |
Total |
|||||||||||||||||||
Principal amount |
$ |
130,000 |
$ |
150,000 |
$ |
280,000 |
$ |
150,000 |
$ |
175,000 |
$ |
325,000 |
||||||||||||
Plus: Premium |
— |
— |
— |
— |
250 |
250 |
||||||||||||||||||
Gross proceeds |
130,000 |
150,000 |
280,000 |
150,000 |
175,250 |
325,250 |
||||||||||||||||||
Less: Unamortized issuance costs |
(3,306 |
) |
(2,554 |
) |
(5,860 |
) |
(2,981 |
) |
(1,053 |
) |
(4,034 |
) |
||||||||||||
Carrying amount |
126,694 |
$ |
147,446 |
$ |
274,140 |
$ |
147,019 |
$ |
174,197 |
$ |
321,216 |
|||||||||||||
Effective interest rate (1)
|
6.25 |
% |
3.83 |
% |
4.96 |
% |
3.83 |
% |
5.26 |
% |
4.60 |
% |
||||||||||||
June 30, 2023 |
December 31, 2022 |
|||||||
Issuance of Series A Preferred Stock |
$ | 132,750 | $ | 132,750 | ||||
Less: Issuance costs |
(181) | (181) | ||||||
Series A Preferred Stock—carrying value |
$ | 132,569 | $ | 132,569 | ||||
Cash dividends declared per share (quarterly) |
$ | 0.03 | $ | 0.03 | ||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Lease cost: |
||||||||||||||||
Operating lease cost |
$ | 321 | $ | 243 | $ | 640 | $ | 332 | ||||||||
Short-term lease cost |
65 | 251 | 121 | 527 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total lease cost |
$ | 386 | $ | 494 | $ | 761 | $ | 859 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Other information: |
||||||||||||||||
Cash paid for amounts included in the measurement of operating liabilities (operating leases) |
$ | 326 | $ | 251 | $ | 652 | $ | 348 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Right-of-use |
n/a | n/a | n/a | n/a | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted-average remaining lease term (in years)—operating leases |
0.8 | 1.8 | 0.8 | 1.8 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted-average discount rate—operating leases |
6.6 | % |
6.3 | % |
6.6 | % |
6.3 | % | ||||||||
|
|
|
|
|
|
|
|
| ||||||
Remainder of 2023 |
$ |
476 |
||||
2024 |
397 |
|||||
2025 and thereafter |
— |
|||||
|
|
|||||
Total future minimum lease payments (undiscounted) |
$ |
873 |
||||
|
|
|
|
|
|
|
|
|
Amounts recognized in the Company’s Consolidated Balance Sheets |
|
|
| |||
Lease liability—short term |
$ | 849 | |
| ||
Difference between undiscounted and discounted cash flows |
24 | |
| |||
|
|
|
|
|
| |
Total future minimum lease payments (undiscounted) |
$ | 873 | |
| ||
|
|
|
|
|
|
June 30, 2023 |
December 31, 2022 |
|||||||
Carrying Amount—Assets (Securrency): |
||||||||
Preferred stock—Securrency Series A Shares |
$ | 3,588 | $ | 8,488 | ||||
Preferred stock—Securrency Series B Shares |
5,500 | 5,500 | ||||||
Secured convertible note |
8,887 | — | ||||||
Convertible note |
13,836 | 14,500 | ||||||
|
|
|
|
|
| |||
Subtotal—Securrency |
$ | 31,811 | $ | 28,488 | ||||
Carrying Amount—Assets (Fnality): |
||||||||
Convertible note |
7,879 | 6,921 | ||||||
Carrying Amount—Assets (Other investments): |
312 | 312 | ||||||
|
|
|
|
|
| |||
Total (Note 7) |
$ | 40,002 | $ | 35,721 | ||||
|
|
|
|
|
| |||
Maximum exposure to loss |
$ | 40,002 | $ | 35,721 | ||||
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Revenues from contracts with customers: |
||||||||||||||||
Advisory fees |
$ |
82,004 |
$ |
75,586 |
$ |
159,641 |
$ |
152,103 |
||||||||
Other |
3,720 |
1,667 |
8,127 |
3,518 |
||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Total operating revenues |
$ |
85,724 |
$ |
77,253 |
$ |
167,768 |
$ |
155,621 |
||||||||
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Revenues from contracts with customers: |
||||||||||||||||
United States |
$ |
52,808 |
$ |
45,807 |
$ |
102,489 |
$ |
92,036 |
||||||||
Jersey |
29,158 |
27,811 |
58,211 |
56,409 |
||||||||||||
Ireland |
3,758 |
3,635 |
7,068 |
7,176 |
||||||||||||
Total operating revenues |
$ |
85,724 |
$ |
77,253 |
$ |
167,768 |
$ |
155,621 |
||||||||
June 30, 2023 |
December 31, 2022 |
|||||||
Receivable from WTT |
$ |
17,821 |
$ |
16,399 |
||||
Receivable from ManJer Issuers |
12,204 |
4,485 |
||||||
Receivable from WMAI and WTICAV |
2,617 |
3,255 |
||||||
Total |
$ |
32,642 |
$ |
24,139 |
||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Advisory services provided to WTT |
$ |
52,452 |
$ |
45,670 |
$ |
101,939 |
$ |
91,740 |
||||||||
Advisory services provided to ManJer Issuers |
25,794 |
26,282 |
50,634 |
53,187 |
||||||||||||
Advisory services provided to WMAI and WTICAV |
3,758 |
3,634 |
7,068 |
7,176 |
||||||||||||
Total |
$ |
82,004 |
$ |
75,586 |
$ |
159,641 |
$ |
152,103 |
||||||||
Stock options: |
Generally issued for terms of ten years and may vest after at least one year of service and have an exercise price equal to the Company’s stock price on the grant date. The Company estimates the fair value of stock options (when granted) using the Black-Scholes option pricing model. |
|||||
RSAs/RSUs: |
Awards are valued based on the Company’s stock price on grant date and generally vest ratably, on an annual basis, over three years. |
|||||
PRSUs: |
These awards cliff vest three years from the grant date and contain a market condition whereby the number of PRSUs ultimately vesting is tied to how the Company’s total shareholder return (“TSR”) compares to a peer group of other publicly traded asset managers over the three-year period. A Monte Carlo simulation is used to value these awards. |
The number of PRSUs vesting ranges from 0% to 200% of the target number of PRSUs granted, as follows: |
● |
If the relative TSR is below the 25 th percentile, then 0% of the target number of PRSUs granted will vest; |
● |
If the relative TSR is at the 25 th percentile, then 50% of the target number of PRSUs granted will vest; |
● |
If the relative TSR is above the 25 th percentile, then linear scaling is applied such that the percent of the target number of PRSUs vesting is 100% at the 50th percentile and capped at 200% of the target number of PRSUs granted for performance at the 85th percentile; and |
● |
If the Company’s TSR is negative, the target number of PRSUs vesting is capped at 100% regardless of the relative TSR percentile. |
June 30, 2023 |
||||||||||
Unrecognized Stock- Based Compensation |
Weighted-Average Remaining Vesting Period (Years) |
|||||||||
Employees and directors |
$ |
27,110 |
1.87 |
RSA |
RSU |
PRSU |
||||||||||
Balance at April 1, 2023 |
5,154,289 |
188,748 |
1,136,315 |
|||||||||
Granted |
78,410 |
78,410 |
— |
|||||||||
Vested |
(76,434 |
) |
(19,762 |
) |
— |
|||||||
Forfeited |
(57,137 |
) |
(19,762 |
) |
— |
|||||||
Balance at June 30, 2023 |
5,099,128 |
227,634 |
1,136,315 |
|||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
Basic Earnings per Share |
2023 |
2022 |
2023 |
2022 |
||||||||||||
Net income/(loss) |
$ |
54,252 |
$ |
8,005 |
$ |
70,485 |
$ |
(2,256 |
) | |||||||
Less: Income distributed to participating securities |
(496 |
) |
(548 |
) |
(994 |
) |
(1,097 |
) | ||||||||
Less: Undistributed income allocable to participating securities |
(7,046 |
) |
(358 |
) |
(7,583 |
) |
— |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income/(loss) available to common stockholders—Basic EPS |
$ |
46,710 |
$ |
7,099 |
$ |
61,908 |
$ |
(3,353 |
) | |||||||
Weighted average common shares (in thousands) |
144,351 |
143,046 |
144,108 |
142,915 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic earnings/(loss) per share |
$ |
0.32 |
$ |
0.05 |
$ |
0.43 |
$ |
(0.02 |
) | |||||||
|
|
|
|
|
|
|
|
|||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
Diluted Earnings per Share |
2023 |
2022 |
2023 |
2022 |
||||||||||||
Net income/(loss) available to common stockholders |
$ |
46,710 |
$ |
7,099 |
$ |
61,908 |
$ |
(3,353 |
) | |||||||
Add back: Undistributed income allocable to participating securities |
7,046 |
358 |
7,583 |
— |
||||||||||||
Less: Reallocation of undistributed income allocable to participating securities considered potentially dilutive |
(6,904 |
) |
(357 |
) |
(7,490 |
) |
— |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income/(loss) available to common stockholders—Diluted EPS |
$ |
46,852 |
$ |
7,100 |
$ |
62,001 |
$ |
(3,353 |
) | |||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted Average Diluted Shares (in thousands): |
||||||||||||||||
Weighted average common shares |
144,351 |
143,046 |
144,108 |
142,915 |
||||||||||||
Dilutive effect of common stock equivalents, excluding participating securities |
3,464 |
379 |
2,047 |
— |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average diluted shares, excluding participating securities (in thousands) |
147,815 |
143,425 |
146,155 |
142,915 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted earnings/(loss) per share |
$ |
0.32 |
$ |
0.05 |
$ |
0.42 |
$ |
(0.02 |
) | |||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
Reconciliation of Weighted Average Diluted Shares (in thousands) |
2023 |
2022 |
2023 |
2022 |
||||||||||||
Weighted average diluted shares as disclosed on the Consolidated Statements of Operations |
170,672 |
158,976 |
165,468 |
142,915 |
(1) | |||||||||||
Less: Participating securities |
||||||||||||||||
Weighted average shares of common stock issuable upon conversion of the Series A Preferred Stock (Note 11) |
(14,750 |
) |
(14,750 |
) |
(14,750 |
) |
— |
|||||||||
Weighted average shares of common stock issuable upon conversion of the Series C Preferred Stock (Note 11) |
(7,478 |
) |
— |
(3,760 |
) |
— |
||||||||||
Potentially dilutive restricted stock awards |
(629 |
) |
(801 |
) |
(803 |
) |
— |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average diluted shares used to calculate diluted earnings/(loss) per share as disclosed in the table above |
147,815 |
143,425 |
146,155 |
142,915 |
||||||||||||
|
|
|
|
|
|
|
|
June 30, 2023 |
December 31, 2022 | ||||||
Deferred tax assets: |
|||||||
Capital losses |
$ | 19,061 | $ | 17,541 | |||
Unrealized losses |
3,054 | 3,821 | |||||
Accrued expenses |
2,669 | 6,030 | |||||
NOLs—Foreign |
1,583 | 1,609 | |||||
Stock-based compensation |
1,289 | 1,526 | |||||
Interest carryforwards |
1,209 | — | |||||
Goodwill and intangible assets |
990 | 1,085 | |||||
Operating lease liabilities |
206 | 313 | |||||
Foreign currency translation adjustment |
184 | 173 | |||||
NOLs—U.S. |
127 | 255 | |||||
Outside basis differences |
122 | 122 | |||||
Other |
362 | 341 | |||||
|
|
|
| ||||
Deferred tax assets |
30,856 | 32,816 | |||||
|
|
|
|
June 30, 2023 |
December 31, 2022 |
|||||||
Deferred tax liabilities: |
||||||||
Fixed assets and prepaid assets |
577 |
278 |
||||||
Unremitted earnings—European subsidiaries |
210 |
205 |
||||||
Right of use assets—operating leases |
206 |
313 |
||||||
Deferred tax liabilities |
993 |
796 |
||||||
Total deferred tax assets less deferred tax liabilities |
29,863 |
32,020 |
||||||
Less: Valuation allowance |
(22,237) |
(21,484) |
||||||
Deferred tax assets, net |
$ 7,626 |
$ 10,536 |
||||||
Total |
||||
Balance at January 1, 2023 |
$ |
85,856 |
||
Changes |
985 (1)
|
|||
Balance at June 30, 2023 |
$ |
86,841 |
||
Balance at June 30, 2023 |
||||||||||||
Item |
Gross Asset |
Accumulated Amortization |
Net Asset |
|||||||||
ETFS acquisition |
$ 601,247 | $ —
|
$ 601,247 | |||||||||
Software development |
3,316 | (156) | 3,160 | |||||||||
Balance at June 30, 2023 |
$ 604,563 | $ (156) | $ 604,407 | |||||||||
Balance at December 31, 2022 |
||||||||||||
Item |
Gross Asset |
Accumulated Amortization |
Net Asset |
|||||||||
ETFS acquisition |
$ 601,247 | $ — | $ 601,247 | |||||||||
Software development |
2,370 | (50) | 2,320 | |||||||||
Balance at December 31, 2022 |
$ 603,617 | $ (50) | $ 603,567 | |||||||||
Remainder of 2023 |
$ 544 | |||
2024 |
1,087 | |||
2025 |
1,056 | |||
2026 |
454 | |||
2027 |
19 | |||
2028 and thereafter |
— | |||
Total expected amortization expense |
$ 3,160 | |||
• | Revenues |
• | Expenses |
• | Other Income/(Expenses) |
• | Net income/(loss) |
Three Months Ended |
Six Months Ended |
|||||||||||||||||||
June 30, 2023 |
March 31, 2023 |
June 30, 2022 |
June 30, 2023 |
June 30, 2022 |
||||||||||||||||
GLOBAL ETPs (in millions) |
||||||||||||||||||||
Beginning of period assets |
$ | 90,740 | $ | 81,993 | $ | 79,407 | $ | 81,993 | $ | 77,479 | ||||||||||
Inflows/(outflows) |
2,327 | 6,341 | 3,852 | 8,668 | 5,171 | |||||||||||||||
Market appreciation/(depreciation) |
599 | 2,406 | (8,953) | 3,005 | (8,344) | |||||||||||||||
Fund closures |
— | — | (4) | — | (4) | |||||||||||||||
End of period assets |
$ | 93,666 | $ | 90,740 | $ | 74,302 | $ | 93,666 | $ | 74,302 | ||||||||||
Average assets during the period |
$ | 91,578 | $ | 87,508 | $ | 77,738 | $ | 89,543 | $ | 77,774 | ||||||||||
Average ETP advisory fee during the period |
0.36% | 0.36% | 0.39% | 0.36% | 0.39% | |||||||||||||||
Revenue days |
91 | 90 | 91 | 181 | 181 | |||||||||||||||
Number of ETPs—end of period |
353 | 350 | 344 | 353 | 344 | |||||||||||||||
U.S. LISTED ETFs (in millions) |
||||||||||||||||||||
Beginning of period assets |
$ | 61,283 | $ | 55,973 | $ | 48,622 | $ | 55,973 | $ | 48,210 | ||||||||||
Inflows/(outflows) |
3,249 | 4,012 | 4,278 | 7,261 | 6,528 | |||||||||||||||
Market appreciation/(depreciation) |
1,371 | 1,298 | (5,645) | 2,669 | (7,483) | |||||||||||||||
End of period assets |
$ | 65,903 | $ | 61,283 | $ | 47,255 | $ | 65,903 | $ | 47,255 | ||||||||||
Average assets during the period |
$ | 62,712 | $ | 59,430 | $ | 48,270 | $ | 61,071 | $ | 47,885 | ||||||||||
Number of ETFs – end of the period |
80 | 80 | 77 | 80 | 77 | |||||||||||||||
EUROPEAN LISTED ETPs (in millions) |
||||||||||||||||||||
Beginning of period assets |
$ | 29,457 | $ | 26,020 | $ | 30,785 | $ | 26,020 | $ | 29,269 | ||||||||||
(Outflows)/inflows |
(922) | 2,329 | (426) | 1,407 | (1,357) | |||||||||||||||
Market (depreciation)/appreciation |
(772) | 1,108 | (3,308) | 336 | (861) | |||||||||||||||
Fund closures |
— | — | (4) | — | (4) | |||||||||||||||
End of period assets |
$ | 27,763 | $ | 29,457 | $ | 27,047 | $ | 27,763 | $ | 27,047 | ||||||||||
Average assets during the period |
$ | 28,866 | $ | 28,078 | $ | 29,468 | $ | 28,472 | $ | 29,889 | ||||||||||
Number of ETPs—end of period |
273 | 270 | 267 | 273 | 267 | |||||||||||||||
PRODUCT CATEGORIES (in millions) |
||||||||||||||||||||
U.S. Equity |
||||||||||||||||||||
Beginning of period assets |
$ | 24,534 | $ | 24,112 | $ | 23,738 | $ | 24,112 | $ | 23,860 | ||||||||||
Inflows/(outflows) |
414 | (149) | 306 | 265 | 1,085 | |||||||||||||||
Market appreciation/(depreciation) |
1,053 | 571 | (2,986) | 1,624 | (3,887) | |||||||||||||||
End of period assets |
$ | 26,001 | $ | 24,534 | $ | 21,058 | $ | 26,001 | $ | 21,058 | ||||||||||
Average assets during the period |
$ | 24,732 | $ | 24,726 | $ | 22,362 | $ | 24,729 | $ | 22,748 | ||||||||||
Commodity & Currency |
||||||||||||||||||||
Beginning of period assets |
$ | 24,924 | $ | 22,097 | $ | 26,302 | $ | 22,097 | $ | 24,598 | ||||||||||
(Outflows)/inflows |
(1,512) | 2,003 | (475) | 491 | (1,528) | |||||||||||||||
Market (depreciation)/appreciation |
(1,028) | 824 | (2,203) | (204) | 554 | |||||||||||||||
End of period assets |
$ | 22,384 | $ | 24,924 | $ | 23,624 | $ | 22,384 | $ | 23,624 | ||||||||||
Average assets during the period |
$ | 24,033 | $ | 23,806 | $ | 25,767 | $ | 23,918 | $ | 25,827 | ||||||||||
Fixed Income |
||||||||||||||||||||
Beginning of period assets |
$ | 18,708 | $ | 15,273 | $ | 5,418 | $ | 15,273 | $ | 4,356 | ||||||||||
Inflows/(outflows) |
1,471 | 3,513 | 4,038 | 4,984 | 5,280 | |||||||||||||||
Market appreciation/(depreciation) |
36 | (78) | (264) | (42) | (444) | |||||||||||||||
End of period assets |
$ | 20,215 | $ | 18,708 | $ | 9,192 | $ | 20,215 | $ | 9,192 | ||||||||||
Average assets during the period |
$ | 19,185 | $ | 17,176 | $ | 7,426 | $ | 18,181 | $ | 6,059 | ||||||||||
International Developed Market Equity |
||||||||||||||||||||
Beginning of period assets |
$ | 11,433 | $ | 10,195 | $ | 11,422 | $ | 10,195 | $ | 11,894 | ||||||||||
Inflows/(outflows) |
1,592 | 450 | 79 | 2,042 | 176 | |||||||||||||||
Market appreciation/(depreciation) |
398 | 788 | (1,533) | 1,186 | (2,102) | |||||||||||||||
End of period assets |
$ | 13,423 | $ | 11,433 | $ | 9,968 | $ | 13,423 | $ | 9,968 | ||||||||||
Average assets during the period |
$ | 12,276 | $ | 10,879 | $ | 10,695 | $ | 11,578 | $ | 11,119 |
Three Months Ended |
Six Months Ended |
|||||||||||||||||||
June 30, 2023 |
March 31, 2023 |
June 30, 2022 |
June 30, 2023 |
June 30, 2022 |
||||||||||||||||
Emerging Market Equity |
||||||||||||||||||||
Beginning of period assets |
$ | 8,811 | $ | 8,116 | $ | 9,991 | $ | 8,116 | $ | 10,375 | ||||||||||
Inflows/(outflows) |
329 | 486 | (223) | 815 | (34) | |||||||||||||||
Market appreciation/(depreciation) |
51 | 209 | (1,382) | 260 | (1,955) | |||||||||||||||
End of period assets |
$ | 9,191 | $ | 8,811 | $ | 8,386 | $ | 9,191 | $ | 8,386 | ||||||||||
Average assets during the period |
$ | 8,998 | $ | 8,666 | $ | 9,155 | $ | 8,832 | $ | 9,636 | ||||||||||
Leveraged & Inverse |
||||||||||||||||||||
Beginning of period assets |
$ | 1,785 | $ | 1,754 | $ | 1,856 | $ | 1,754 | $ | 1,775 | ||||||||||
Inflows/(outflows) |
12 | 43 | 90 | 55 | 88 | |||||||||||||||
Market appreciation/(depreciation) |
67 | (12) | (328) | 55 | (245) | |||||||||||||||
End of period assets |
$ | 1,864 | $ | 1,785 | $ | 1,618 | $ | 1,864 | $ | 1,618 | ||||||||||
Average assets during the period |
$ | 1,798 | $ | 1,757 | $ | 1,765 | $ | 1,778 | $ | 1,798 | ||||||||||
Alternatives |
||||||||||||||||||||
Beginning of period assets |
$ | 306 | $ | 310 | $ | 293 | $ | 310 | $ | 261 | ||||||||||
Inflows/(outflows) |
22 | (18) | 34 | 4 | 63 | |||||||||||||||
Market appreciation/(depreciation) |
12 | 14 | (22) | 26 | (19) | |||||||||||||||
End of period assets |
$ | 340 | $ | 306 | $ | 305 | $ | 340 | $ | 305 | ||||||||||
Average assets during the period |
$ | 320 | $ | 308 | $ | 299 | $ | 314 | $ | 287 | ||||||||||
Cryptocurrency |
||||||||||||||||||||
Beginning of period assets |
$ | 239 | $ | 136 | $ | 383 | $ | 136 | $ | 357 | ||||||||||
(Outflows)/inflows |
(1) | 13 | 3 | 12 | 40 | |||||||||||||||
Market appreciation/(depreciation) |
10 | 90 | (235) | 100 | (246) | |||||||||||||||
End of period assets |
$ | 248 | $ | 239 | $ | 151 | $ | 248 | $ | 151 | ||||||||||
Average assets during the period |
$ | 236 | $ | 190 | $ | 265 | $ | 213 | $ | 295 | ||||||||||
Closed ETPs |
||||||||||||||||||||
Beginning of period assets |
$ | — | $ | — | $ | 4 | $ | — | $ | 3 | ||||||||||
Inflows/(outflows) |
— | — | — | — | 1 | |||||||||||||||
Fund closures |
— | — | (4) | — | (4) | |||||||||||||||
End of period assets |
$ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Average assets during the period |
$ | — | $ | — | $ | 4 | $ | — | $ | 5 | ||||||||||
Headcount: |
291 | 279 | 264 | 291 | 264 |
Three Months Ended June 30, |
Change |
Percent Change |
||||||||||||||
2023 |
2022 |
|||||||||||||||
AUM (in millions) |
||||||||||||||||
Average AUM |
$ | 91,578 | $ | 77,738 | $ | 13,840 | 17.8% | |||||||||
Operating Revenues (in thousands) |
||||||||||||||||
Advisory fees |
$ | 82,004 | $ | 75,586 | $ | 6,418 | 8.5% | |||||||||
Other income |
3,720 | 1,667 | 2,053 | 123.2% | ||||||||||||
Total revenues |
$ | 85,724 | $ | 77,253 | $ | 8,471 | 11.0% | |||||||||
(in thousands) |
Three Months Ended June 30, |
Change |
Percent Change |
|||||||||||||
2023 |
2022 |
|||||||||||||||
Compensation and benefits |
$ | 26,319 | $ | 24,565 | $ | 1,754 | 7.1% | |||||||||
Fund management and administration |
17,727 | 16,076 | 1,651 | 10.3% | ||||||||||||
Marketing and advertising |
4,465 | 3,894 | 571 | 14.7% | ||||||||||||
Sales and business development |
3,326 | 3,131 | 195 | 6.2% | ||||||||||||
Contractual gold payments |
1,583 | 4,446 | (2,863) | (64.4%) | ||||||||||||
Professional fees |
8,334 | 4,308 | 4,026 | 93.5% | ||||||||||||
Occupancy, communications and equipment |
1,172 | 1,049 | 123 | 11.7% | ||||||||||||
Depreciation and amortization |
121 | 53 | 68 | 128.3% | ||||||||||||
Third-party distribution fees |
1,881 | 1,818 | 63 | 3.5% | ||||||||||||
Other |
2,615 | 2,109 | 506 | 24.0% | ||||||||||||
Total operating expenses |
$ | 67,543 | $ | 61,449 | $ | 6,094 | 9.9% | |||||||||
As a Percent of Revenues: |
Three Months Ended June 30, |
|||||||
2023 |
2022 |
|||||||
Compensation and benefits |
30.7% | 31.6% | ||||||
Fund management and administration |
20.7% | 20.8% | ||||||
Marketing and advertising |
5.2% | 5.0% | ||||||
Sales and business development |
3.9% | 4.1% | ||||||
Contractual gold payments |
1.8% | 5.8% | ||||||
Professional fees |
9.7% | 5.6% | ||||||
Occupancy, communications and equipment |
1.4% | 1.4% | ||||||
Depreciation and amortization |
0.1% | 0.1% | ||||||
Third-party distribution fees |
2.2% | 2.4% | ||||||
Other |
3.1% | 2.7% | ||||||
Total operating expenses |
78.8% | 79.5% | ||||||
(in thousands) |
Three Months Ended June 30, |
Change |
Percent Change |
|||||||||||||
2023 |
2022 |
|||||||||||||||
Interest expense |
$ |
(4,021 |
) |
$ |
(3,733 |
) |
$ |
(288 |
) |
7.7 |
% |
|||||
Gain on revaluation/termination of deferred consideration—gold payments |
41,361 |
2,311 |
39,050 |
1,689.7 |
% |
|||||||||||
Interest income |
1,000 |
770 |
230 |
29.9 |
% |
|||||||||||
Other gains and losses, net |
1,286 |
(4,474 |
) |
5,760 |
n/a |
|||||||||||
Total other income/(expenses), net |
$ |
39,626 |
$ |
(5,126 |
) |
$ |
44,752 |
n/a |
||||||||
Three Months Ended June 30, |
||||||||
As a Percent of Revenues: |
2023 |
2022 |
||||||
Interest expense |
(4.7 |
%) |
(4.8 |
%) |
||||
Gain on revaluation/termination of deferred consideration—gold payments |
48.2 |
% |
3.0 |
% |
||||
Interest income |
1.2 |
% |
1.0 |
% |
||||
Other gains and losses, net |
1.5 |
% |
(5.8 |
%) |
||||
Total other income/(expenses), net |
46.2 |
% |
(6.6 |
%) |
||||
Six Months Ended June 30, |
Change |
Percent Change |
||||||||||||||
2023 |
2022 |
|||||||||||||||
AUM (in millions) |
||||||||||||||||
Average AUM |
$ | 89,543 | $ | 77,774 | $ | 11,769 | 15.1% | |||||||||
Operating Revenues (in thousands) |
||||||||||||||||
Advisory fees |
$ | 159,641 | $ | 152,103 | $ | 7,538 | 5.0% | |||||||||
Other income |
8,127 | 3,518 | 4,609 | 131.0% | ||||||||||||
Total revenues |
$ | 167,768 | $ | 155,621 | $ | 12,147 | 7.8% | |||||||||
(in thousands) |
Six Months Ended June 30, |
Change |
Percent Change |
|||||||||||||
2023 |
2022 |
|||||||||||||||
Compensation and benefits |
$ | 53,717 | $ | 49,352 | $ | 4,365 | 8.8% | |||||||||
Fund management and administration |
34,880 | 31,570 | 3,310 | 10.5% | ||||||||||||
Marketing and advertising |
8,472 | 7,917 | 555 | 7.0% | ||||||||||||
Sales and business development |
6,320 | 5,740 | 580 | 10.1% | ||||||||||||
Contractual gold payments |
6,069 | 8,896 | (2,827) | (31.8%) | ||||||||||||
Professional fees |
12,049 | 8,767 | 3,282 | 37.4% | ||||||||||||
Occupancy, communications and equipment |
2,273 | 1,802 | 471 | 26.1% | ||||||||||||
Depreciation and amortization |
230 | 100 | 130 | 130.0% | ||||||||||||
Third-party distribution fees |
4,134 | 4,030 | 104 | 2.6% | ||||||||||||
Other |
4,872 | 3,954 | 918 | 23.2% | ||||||||||||
Total operating expenses |
$ | 133,016 | $ | 122,128 | $ | 10,888 | 8.9% | |||||||||
As a Percent of Revenues: |
Six Months Ended June 30, |
|||||||
2023 |
2022 |
|||||||
Compensation and benefits |
32.0% | 31.7% | ||||||
Fund management and administration |
20.8% | 20.3% | ||||||
Marketing and advertising |
5.0% | 5.1% | ||||||
Sales and business development |
3.8% | 3.7% | ||||||
Contractual gold payments |
3.6% | 5.7% | ||||||
Professional fees |
7.2% | 5.6% | ||||||
Occupancy, communications and equipment |
1.4% | 1.2% | ||||||
Depreciation and amortization |
0.1% | 0.1% | ||||||
Third-party distribution fees |
2.5% | 2.6% | ||||||
Other |
2.9% | 2.5% | ||||||
Total operating expenses |
79.3% | 78.5% | ||||||
(in thousands) |
Six Months Ended
June 30,
|
Change |
Percent
Change
|
|||||||||||||
2023 |
2022 |
|||||||||||||||
Interest expense
|
$ | (8,023) | $ | (7,465) | $ | (558) | 7.5% | |||||||||
Gain/(loss) on revaluation/termination of deferred consideration—gold payments
|
61,953 | (14,707) | 76,660 | n/a | ||||||||||||
Interest income
|
2,083 | 1,564 | 519 | 33.2% | ||||||||||||
Impairments
|
(4,900) | — | (4,900) | n/a | ||||||||||||
Loss on extinguishment of convertible notes
|
(9,721) | — | (9,721) | n/a | ||||||||||||
Other losses, net
|
(721) | (29,181) | 28,460 | (97.5%) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other income/(expenses), net
|
$ | 40,671 | $ | (49,789) | $ | 90,460 | n/a | |||||||||
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
||||||||
As a Percent of Revenues: |
2023 |
2022 |
||||||
Interest expense |
(4.8%) | (4.8%) | ||||||
Gain/(loss) on revaluation/termination of deferred consideration—gold payments |
36.9% | (9.5%) | ||||||
Interest income |
1.2% | 1.0% | ||||||
Impairments |
(2.9%) | — | ||||||
Loss on extinguishment of convertible notes |
(5.8%) | — | ||||||
Other losses, net |
(0.4%) | (18.7%) | ||||||
Total other income/(expenses), net |
24.2% | (32.0%) | ||||||
• | Adjusted net income and diluted earnings per share. non-GAAP financial measurements in order to report our results exclusive of items that are non-recurring or not core to our operating business. We believe presenting these non-GAAP financial measurements provides investors with a consistent way to analyze our performance. These non-GAAP financial measurements exclude the following: |
• | Unrealized gains or losses on revaluation/termination of deferred consideration—gold payments: |
• | Gains or losses on financial instruments owned: non-GAAP financial measurements as the gains and losses introduce volatility in earnings and are not core to our operating business. |
• | Tax windfalls and shortfalls upon vesting and exercise of stock-based compensation awards: |
• | Other items: non-GAAP financial measurements. |
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||
Adjusted Net Income and Diluted Earnings per Share: |
2023 |
2022 |
2023 |
2022 |
||||||||||||
Net income/(loss), as reported |
$ | 54,252 | $ | 8,005 | $ | 70,485 | $ | (2,256 | ) | |||||||
Deduct/add back: (Gain)/loss on revaluation/termination of deferred consideration—gold payments |
(41,361 | ) | (2,311 | ) | (61,953 | ) | 14,707 | |||||||||
Add back: Expenses incurred in response to an activist campaign, net of income taxes |
3,720 | 1,532 | 4,452 | 3,376 | ||||||||||||
Deduct/add back: Unrealized (gain)/loss recognized on our investments, net of income taxes |
(2,346 | ) | (55 | ) | 620 | 69 | ||||||||||
Add back/(deduct): Losses/(gains) on financial instruments owned, net of income taxes |
762 | 3,165 | (717 | ) | 7,058 | |||||||||||
(Deduct)/add back: (Decrease)/increase in deferred tax asset valuation allowance on financial instruments owned and investments |
(508 | ) | 901 | (31 | ) | 2,911 | ||||||||||
Add back: Litigation expenses associated with certain provisions of the Stockholder Rights Agreement, net of income taxes |
367 | — | 367 | — | ||||||||||||
Add back/(deduct): Tax shortfalls/(windfalls) upon vesting and exercise of stock-based compensation awards |
33 | 20 | (152 | ) | (545 | ) | ||||||||||
Add back: Loss on extinguishment of convertible notes, net of income taxes |
— | — | 9,623 | — | ||||||||||||
Add back: Impairments, net of income taxes (where applicable) |
— | — | 4,900 | — | ||||||||||||
Deduct: Remeasurement of contingent consideration—sale of former Canadian ETF business |
— | — | (1,477 | ) | — | |||||||||||
Adjusted net income |
$ | 14,919 | $ | 11,257 | $ | 26,117 | $ | 25,320 | ||||||||
Deduct: Income distributed to participating securities |
(496 | ) | (548 | ) | (994 | ) | (1,097 | ) | ||||||||
Deduct: Undistributed income allocable to participating securities |
(1,410 | ) | (724 | ) | (2,028 | ) | (1,763 | ) | ||||||||
Adjusted net income available to common stockholders |
$ | 13,013 | $ | 9,985 | $ | 23,095 | $ | 22,460 | ||||||||
Weighted average diluted shares, excluding participating securities (in thousands) (See Note 11 to our Consolidated Financial Statements) |
147,815 | 143,425 | 146,155 | 143,271 | ||||||||||||
Adjusted earnings per share – diluted |
$ | 0.09 | $ | 0.07 | $ | 0.16 | $ | 0.16 | ||||||||
June 30, 2023 |
December 31, 2022 |
|||||||
Balance Sheet Data (in thousands): |
||||||||
Cash and cash equivalents |
$ | 83,735 | $ | 132,101 | ||||
Financial instruments owned, at fair value |
65,492 | 126,239 | ||||||
Accounts receivable |
34,208 | 30,549 | ||||||
Securities held-to-maturity |
245 | 259 | ||||||
Total: Liquid assets |
183,680 | 289,148 | ||||||
Less: Total current liabilities |
(68,281 | ) | (148,434 | ) | ||||
Less: Other assets—seed capital (WisdomTree Digital Funds) |
(12,876 | ) | (1,765 | ) | ||||
Less: Regulatory capital requirements |
(24,912 | ) | (25,988 | ) | ||||
Total: Available liquidity |
$ | 77,611 | $ | 112,961 | ||||
Six Months Ended June 30, |
||||||||
2023 |
2022 |
|||||||
Cash Flow Data (in thousands): |
||||||||
Operating cash flows |
$ | 20,029 | $ | 8,542 | ||||
Investing cash flows |
51,936 | (23,070) | ||||||
Financing cash flows |
(121,109) | (13,073) | ||||||
Foreign exchange rate effect |
778 | (3,372) | ||||||
Decrease in cash and cash equivalents |
$ | (48,366) | $ | (30,973) | ||||
2023 Notes |
2021 Notes |
|||||||
Principal outstanding |
$130.0 | $150.0 | ||||||
Maturity date (unless earlier converted, repurchased or redeemed) |
August 15, 2028 | June 15, 2026 | ||||||
Interest rate |
5.75% | 3.25% | ||||||
Conversion price |
$9.54 | $11.04 | ||||||
Conversion rate |
104.8658 | 90.5797 | ||||||
Redemption price |
$12.40 | $14.35 |
• | Interest rate: |
• | Conversion price: |
• | Conversion: their Convertible Notes at any time, regardless of the foregoing circumstances. |
• | Cash settlement of principal amount: |
• | Redemption price: th scheduled trading day immediately preceding the maturity date, if the last reported sale price of our common stock has been at least 130% of the conversion price for the respective Convertible Notes then in effect for at least 20 trading days, including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption, at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding the redemption date. No sinking fund is provided for the Convertible Notes. |
• | Limited investor put rights: |
• | Conversion rate increase in certain customary circumstances: |
• | Seniority and Security: Non-Voting Convertible Preferred Stock (See Note 11 to our Consolidated Financial Statements). |
ITEM 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. |
CONTROLS AND PROCEDURES |
ITEM 1. |
LEGAL PROCEEDINGS |
ITEM 1A. |
RISK FACTORS |
ITEM 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Total Number of Shares Purchased |
Average Price Paid Per Share |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs |
|||||||||||||
Period |
(in thousands) |
|||||||||||||||
April 1, 2023 to April 30, 2023 |
26,582 | $ | 5.86 | 26,582 | ||||||||||||
May 1, 2023 to May 31, 2023 |
— | $ | — | — | ||||||||||||
June 1, 2023 to June 30, 2023 |
— | $ | — | — | ||||||||||||
Total |
26,582 | $ | — | 26,582 | $ 96,436 | |||||||||||
ITEM 3. |
DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. |
MINE SAFETY DISCLOSURES |
ITEM 5. |
OTHER INFORMATION |
ITEM 6. |
EXHIBITS |
Exhibit Number |
Description | |
3.1 |
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3.2 |
||
3.3 |
||
3.4 |
||
3.5 |
||
3.6 |
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3.7 |
||
3.8 |
||
4.1 |
||
4.2 |
||
4.3 |
||
4.4 |
||
4.5 |
||
4.6 |
||
4.7 |
||
4.8 |
||
4.9 |
||
4.10 |
||
4.11 |
||
4.12 |
WISDOMTREE, INC. | ||
By: | /s/ Jonathan Steinberg | |
Jonathan Steinberg | ||
Chief Executive Officer (Principal Executive Officer) |
||
WISDOMTREE, INC. | ||
By: | /s/ Bryan Edmiston | |
Bryan Edmiston | ||
Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |
Exhibit 31.1
Certification
I, Jonathan Steinberg, certify that:
1. | I have reviewed this quarterly report on Form 10-Q of WisdomTree, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By: |
/s/ Jonathan Steinberg |
|
Jonathan Steinberg |
||
Chief Executive Officer |
||
(Principal Executive Officer) |
Date: August 4, 2023
Exhibit 31.2
Certification
I, Bryan Edmiston, certify that:
1. | I have reviewed this quarterly report on Form 10-Q of WisdomTree, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By: | /s/ Bryan Edmiston | |
Bryan Edmiston | ||
Chief Financial Officer |
||
(Principal Financial Officer and Principal Accounting Officer) |
Date: August 4, 2023
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of WisdomTree, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2023 as filed with the Securities and Exchange Commission (the “SEC”) on the date hereof (the “Report”), we, Jonathan Steinberg, Chief Executive Officer of the Company, and Bryan Edmiston, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to our knowledge, that:
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Exchange Act, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
This certification is being furnished and not filed, and shall not be incorporated into any documents for any purpose, under the Exchange Act, as amended. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.
By: | /s/ Jonathan Steinberg | |
Jonathan Steinberg | ||
Chief Executive Officer | ||
(Principal Executive Officer) | ||
By: | /s/ Bryan Edmiston | |
Bryan Edmiston | ||
Chief Financial Officer | ||
(Principal Financial Officer and Principal Accounting Officer) |
August 4, 2023