Variable Interest Entities

3 Months Ended

Mar. 31, 2021

Variable Interest Entities

14. Variable Interest Entities

VIEs are entities with any of the following characteristics: (i) the entity does not have enough equity to finance its activities without additional financial support; (ii) the equity holders, as a group, lack the characteristics of a controlling financial interest; or (iii) the entity is structured with non-substantive voting rights.

Consolidation of a VIE is required for the party deemed to be the primary beneficiary, if any. The primary beneficiary is the party who has both (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. The Company is not the primary beneficiary of the entity in which it has a variable interest as it does not have the power to direct the activities that most significantly impact the entity’s economic performance. Such power is conveyed through the entity’s board of directors and the Company does not have control over the board.

The following table presents information about the Company’s variable interests in non-consolidated VIEs:

	March 31, 2021		December 31, 2020
Carrying Amount – Assets (Securrency)
Preferred stock – Series A Shares	$	8,349	$	8,112
Preferred stock – Series B Shares		5,500		—
Total (Note 7)	$	13,849	$	8,112
Maximum exposure to loss	$	13,849	$	8,112