REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue from contracts with customers by reportable segment for the three and six months ended June 30, 2022 and 2021 was as follows:

	Capital Markets Segment		Wealth Management Segment		Auction and Liquidation Segment		Financial Consulting Segment		Principal Investments - Communications and Other Segment		Brands Segment		Total
Revenues for the three months ended June 30, 2022
Corporate finance, consulting and investment banking fees	$	35,473	$	—	$	—	$	15,646	$	—	$	—	$	51,119
Wealth and asset management fees	2,519		53,291		—		—		—		—		55,810
Commissions, fees and reimbursed expenses	11,336		3,311		2,488		8,664		—		—		25,799
Subscription services	—		—		—		—		37,809		—		37,809
Advertising, licensing and other (1)	—		—		—		—		4,724		5,174		9,898
Total revenues from contracts with customers	49,328		56,602		2,488		24,310		42,533		5,174		180,435
Interest income - Loans and securities lending	62,399		—		1,436		—		—		—		63,835
Trading (losses) gains on investments	(214,493)		1,528		—		—		—				(212,965)
Fair value adjustment on loans	(10,962)		—		—		—		—		—		(10,962)
Other	18,098		4,259		—		—		—		—		22,357
Total revenues	$	(95,630)	$	62,389	$	3,924	$	24,310	$	42,533	$	5,174	$	42,700

(1)Includes sale of goods of $1,887 in Principal Investments - Communications and Other.

	Capital Markets Segment		Wealth Management Segment		Auction and Liquidation Segment		Financial Consulting Segment		Principal Investments - Communications and Other Segment		Brands Segment		Total
Revenues for the three months ended June 30, 2021
Corporate finance, consulting and investment banking fees	$	107,224	$	—	$	—	$	14,513	$	—	$	—	$	121,737
Wealth and asset management fees	1,994		67,017		—		—		—		—		69,011
Commissions, fees and reimbursed expenses	11,265		18,132		4,749		9,222		—		—		43,368
Subscription services	—		—		—		—		17,255		—		17,255
Service contract revenues	—		—		784		—		—		—		784
Advertising, licensing and other (1)	—		—		11,744		—		2,391		4,501		18,636
Total revenues from contracts with customers	120,483		85,149		17,277		23,735		19,646		4,501		270,791
Interest income - Loans and securities lending	25,491		—		—		—		—		—		25,491
Trading gains on investments	30,577		2,865		—		—		—		(83)		33,359
Fair value adjustment on loans	(680)		—		—		—		—		—		(680)
Other	5,514		2,295		—				—		—		7,809
Total revenues	$	181,385	$	90,309	$	17,277	$	23,735	$	19,646	$	4,418	$	336,770

(1)Includes sale of goods of $11,743 in Auction and Liquidation and $714 in Principal Investments - Communications and Other.

	Capital Markets Segment		Wealth Management Segment		Auction and Liquidation Segment		Financial Consulting Segment		Principal Investments - Communications and Other Segment		Brands Segment		Total
Revenues for the six months ended June 30, 2022
Corporate finance, consulting and investment banking fees	$	77,146	$	—	$	—	$	32,616	$	—	$	—	$	109,762
Wealth and asset management fees	4,919		117,513		—		—		—		—		122,432
Commissions, fees and reimbursed expenses	23,381		16,161		5,843		17,630		—		—		63,015
Subscription services	—		—		—		—		65,622		—		65,622
Advertising, licensing and other (1)	—		—		—		—		9,575		9,731		19,306
Total revenues from contracts with customers	105,446		133,674		5,843		50,246		75,197		9,731		380,137
Interest income - Loans and securities lending	123,825		—		1,436		—		—		—		125,261
Trading (losses) gains on investments	(294,343)		2,050		—		—		—		—		(292,293)
Fair value adjustment on loans	(24)		—		—		—		—		—		(24)
Other	31,064		4,144		—		—		—		—		35,208
Total revenues	$	(34,032)	$	139,868	$	7,279	$	50,246	$	75,197	$	9,731	$	248,289

(1)Includes sale of goods of $3,765 in Principal Investments - Communications and Other.

	Capital Markets Segment		Wealth Management Segment		Auction and Liquidation Segment		Financial Consulting Segment		Principal Investments - Communications and Other Segment		Brands Segment		Total
Revenues for the six months ended June 30, 2021
Corporate finance, consulting and investment banking fees	$	254,293	$	—	$	—	$	27,940	$	—	$	—	$	282,233
Wealth and asset management fees	4,878		117,528		—		—		—		—		122,406
Commissions, fees and reimbursed expenses	26,809		31,600		11,807		17,204		—		—		87,420
Subscription services	—		—		—		—		34,499		—		34,499
Service contract revenues	—		—		1,085		—		—		—		1,085
Advertising, licensing and other (1)	—		—		17,835		—		5,676		8,889		32,400
Total revenues from contracts with customers	285,980		149,128		30,727		45,144		40,175		8,889		560,043
Interest income - Loans and securities lending	62,411		—		—		—		—		—		62,411
Trading (losses) gains on investments	284,354		5,221		—		—		—		—		289,575
Fair value adjustment on loans	10,046		—		—		—		—		—		10,046
Other	10,996		3,858		—		—		—		—		14,854
Total revenues	$	653,787	$	158,207	$	30,727	$	45,144	$	40,175	$	8,889	$	936,929

(1)Includes sale of goods of $17,835 in Auction and Liquidation and $1,450 in Principal Investments - Communications and Other.

Contract Balances

The timing of the Company’s revenue recognition may differ from the timing of payment by its customers. The Company records a receivable when revenue is recognized prior to payment and the Company has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligation(s) are satisfied. Receivables related to revenues from contracts with customers totaled $52,935 and $49,673 as of June 30, 2022 and December 31, 2021, respectively. The Company had no significant impairments related to these receivables during the three and six months ended June 30, 2022 and 2021. The Company also had $16,491 and $12,315 of unbilled receivables included in prepaid expenses and other assets as of June 30, 2022 and December 31, 2021, respectively, and advances against customer contracts included in prepaid expenses and other assets of $200 as of June 30, 2022 and December 31, 2021. The Company’s deferred revenue primarily relates to retainer and milestone fees received from corporate finance and investment banking advisory engagements, asset management agreements, financial consulting engagements, subscription services where the performance obligation has not yet been

satisfied and license agreements with guaranteed minimum royalty payments and advertising/marketing fees with additional royalty revenue based on a percentage of defined sales. Deferred revenue as of June 30, 2022 and December 31, 2021 was $79,226 and $69,507, respectively. The Company expects to recognize the deferred revenue of $79,226 as of June 30, 2022 as service and fee revenues when the performance obligation is met during the years December 31, 2022 (remaining six months), 2023, 2024, 2025 and 2026 in the amount of $48,031, $12,620, $8,421, $4,792, and $2,247, respectively. The Company expects to recognize the deferred revenue of $3,115 after December 31, 2026.

During the three months ended June 30, 2022 and 2021, the Company recognized revenue of $10,055 and $9,370 that was recorded as deferred revenue at the beginning of the respective year. During the six months ended June 30, 2022 and 2021, the Company recognized revenue of $24,994 and $26,649 that was recorded as deferred revenue at the beginning of the respective year.

Contract Costs

Contract costs include: (1) costs to fulfill contracts associated with corporate finance and investment banking engagements are capitalized where the revenue is recognized at a point in time and the costs are determined to be recoverable; (2) costs to fulfill Auction and Liquidation services contracts where the Company guarantees a minimum recovery value for goods being sold at auction or liquidation where the revenue is recognized over time when the performance obligation is satisfied; and (3) commissions paid to obtain magicJack and Lingo contracts which are recognized ratably over the contract term and third party support costs for magicJack and related equipment purchased by customers which are recognized ratably over the service period.

The capitalized costs to fulfill a contract were $2,564 and $1,605 as of June 30, 2022 and December 31, 2021, respectively, and are recorded in prepaid expenses and other assets in the condensed consolidated balance sheets. During the three months ended June 30, 2022 and 2021, the Company recognized expenses of $175 and $51 related to capitalized costs to fulfill a contract, respectively. During the six months ended June 30, 2022 and 2021, the Company recognized expenses of $1,090 and $109 related to capitalized costs to fulfill a contract, respectively. There were no significant impairment charges recognized in relation to these capitalized costs during the three and six months ended June 30, 2022 and 2021.

Remaining Performance Obligations and Revenue Recognized from Past Performance

The Company does not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. The transaction price allocated to remaining unsatisfied or partially unsatisfied performance obligations with an original expected duration exceeding one year was not material as of June 30, 2022. Corporate finance and investment banking fees and retail liquidation engagement fees that are contingent upon completion of a specific milestone and fees associated with certain distribution services are also excluded as the fees are considered variable and not included in the transaction price as of June 30, 2022.