Related Party Transactions

9 Months Ended

Sep. 30, 2022

16. Related Party Transactions

The Company’s revenues are derived primarily from investment advisory agreements with related parties. Under these agreements, the Company has licensed to related parties the use of certain of its own indexes for the U.S. WisdomTree ETFs and WisdomTree UCITS ETFs. The Board of Trustees and Board of Directors (including certain officers of the Company) of the related parties are primarily responsible for overseeing the management and affairs of the entities for the benefit of their stakeholders and have contracted with the Company to provide for general management and administration services. The Company is also responsible for certain expenses of the related parties, including the cost of transfer agency, custody, fund administration and accounting, legal, audit, and other

non-distribution

services, excluding extraordinary expenses, taxes and certain other expenses, which are included in fund management and administration in the Consolidated Statements of Operations. In exchange, the Company receives fees based on a percentage of the ETPs’ average daily net assets. A majority of the independent members of the Board of Trustees are required to annually approve the advisory agreements of the U.S. WisdomTree ETFs and these agreements may be terminated by the Board of Trustees upon notice.

The following table summarizes accounts receivable from related parties which are included as a component of accounts receivable in the Consolidated Balance Sheets:


	September 30, 2022		December 31, 2021
Receivable from WTT	$	14,618	$	15,987
Receivable from ManJer Issuers		4,624		6,460
Receivable from WMAI and WTI		1,980		3,181

Total	$	21,222	$	25,628

The allowance for credit losses on accounts receivable from related parties is insignificant when applying historical loss rates, adjusted for current conditions and supportable forecasts, to the amounts outstanding in the table above. Amounts outstanding are all invoiced in arrears, are less than 30 days aged and are collected shortly after the applicable reporting period.

The following table summarizes revenues from advisory services provided to related parties:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Advisory services provided to WTT	$	45,112	$	46,386	$	136,852	$	131,364
Advisory services provided to ManJer Issuers		22,055		24,759		75,242		75,296
Advisory services provided to WMAI and WTI		3,449		5,255		10,625		13,951

Total	$	70,616	$	76,400	$	222,719	$	220,611

The Company also has investments in certain WisdomTree ETFs of approximately $12,387 and $18,526 at September 30, 2022 and December 31, 2021, respectively. Net gain and (losses) related to trading WisdomTree ETFs were ($489) and ($1,608), respectively, during the three and nine months ended September 30, 2022, and ($92) and $75, respectively, during the comparable periods in 2021. Such gains and losses are recorded in other losses, net in the Consolidated Statements of Operations.