2018 Q4 Form 10-Q Financial Statement

#000090910818000090 Filed on October 30, 2018

View on sec.gov

Income Statement

Concept 2018 Q4 2018 Q3 2017 Q3
Revenue $34.45M $37.47M $36.77M
YoY Change -8.98% 1.9% 11.64%
Cost Of Revenue $860.0K $870.0K $1.120M
YoY Change -25.86% -22.32% 7.69%
Gross Profit $33.59M $36.60M $35.65M
YoY Change -8.42% 2.66% 11.76%
Gross Profit Margin 97.5% 97.67% 96.95%
Selling, General & Admin $13.80M $4.244M $4.318M
YoY Change -24.51% -1.72% 6.72%
% of Gross Profit 41.08% 11.6% 12.11%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $290.0K $300.0K $230.0K
YoY Change 26.09% 30.43% 35.29%
% of Gross Profit 0.86% 0.82% 0.65%
Operating Expenses $13.80M $20.56M $19.88M
YoY Change -24.51% 3.38% 11.72%
Operating Profit $19.79M $16.92M $16.89M
YoY Change 7.55% 0.17% 11.55%
Interest Expense -$13.49M $5.210M $2.770M
YoY Change -410.83% 88.09% -22.19%
% of Operating Profit -68.17% 30.8% 16.4%
Other Income/Expense, Net
YoY Change
Pretax Income $6.300M $22.13M $19.66M
YoY Change -72.31% 12.57% -8.02%
Income Tax $5.140M $5.727M $6.500M
% Of Pretax Income 81.59% 25.88% 33.07%
Net Earnings $4.810M $15.21M $12.70M
YoY Change -59.55% 19.76% -5.42%
Net Earnings / Revenue 13.96% 40.59% 34.53%
Basic Earnings Per Share $4.31 $3.68
Diluted Earnings Per Share $1.370M $4.31 $3.67
COMMON SHARES
Basic Shares Outstanding 3.512M shares 3.531M shares 3.454M shares
Diluted Shares Outstanding 3.532M shares 3.461M shares

Balance Sheet

Concept 2018 Q4 2018 Q3 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $84.40M $100.6M $89.90M
YoY Change 10.18% 11.9% 41.13%
Cash & Equivalents $84.43M $100.6M $89.89M
Short-Term Investments
Other Short-Term Assets $2.400M $2.300M $2.200M
YoY Change 14.29% 4.55% 46.67%
Inventory
Prepaid Expenses
Receivables $20.30M $19.40M $17.70M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $107.1M $122.3M $109.8M
YoY Change 9.4% 11.38% 32.45%
LONG-TERM ASSETS
Property, Plant & Equipment $3.680M $3.909M $3.690M
YoY Change -9.3% 5.94% -10.62%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $16.34M $20.13M $29.75M
YoY Change -54.67% -32.34% 6.44%
Other Assets $11.50M $7.600M $10.40M
YoY Change 98.28% -26.92% 14.29%
Total Long-Term Assets $218.6M $223.8M $145.4M
YoY Change 43.37% 53.97% 43.35%
TOTAL ASSETS
Total Short-Term Assets $107.1M $122.3M $109.8M
Total Long-Term Assets $218.6M $223.8M $145.4M
Total Assets $325.7M $346.1M $255.2M
YoY Change 30.09% 35.65% 38.44%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $15.60M $13.70M $10.40M
YoY Change 31.09% 31.73% 52.94%
Accrued Expenses $26.80M $21.70M $21.10M
YoY Change 5.1% 2.84% 30.25%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $45.20M $36.00M $31.50M
YoY Change 20.86% 14.29% 36.96%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $22.40M $25.40M $19.60M
YoY Change 9.27% 29.59% 46.27%
Total Long-Term Liabilities $22.40M $25.40M $19.60M
YoY Change 9.27% 29.59% 46.27%
TOTAL LIABILITIES
Total Short-Term Liabilities $45.20M $36.00M $31.50M
Total Long-Term Liabilities $22.40M $25.40M $19.60M
Total Liabilities $67.47M $61.44M $51.04M
YoY Change 16.6% 20.38% 40.57%
SHAREHOLDERS EQUITY
Retained Earnings $92.65M $115.9M $85.75M
YoY Change 26.28% 35.2% 57.4%
Common Stock $124.9M $130.6M $119.2M
YoY Change 5.69% 9.56% 9.41%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $195.6M $224.0M $184.7M
YoY Change
Total Liabilities & Shareholders Equity $325.7M $346.1M $255.2M
YoY Change 30.09% 35.65% 38.44%

Cashflow Statement

Concept 2018 Q4 2018 Q3 2017 Q3
OPERATING ACTIVITIES
Net Income $4.810M $15.21M $12.70M
YoY Change -59.55% 19.76% -5.42%
Depreciation, Depletion And Amortization $290.0K $300.0K $230.0K
YoY Change 26.09% 30.43% 35.29%
Cash From Operating Activities $18.50M $16.97M $18.89M
YoY Change -8.96% -10.16% -300.53%
INVESTING ACTIVITIES
Capital Expenditures -$80.00K -$110.0K -$380.0K
YoY Change -86.67% -71.05% 322.22%
Acquisitions
YoY Change
Other Investing Activities -$910.0K -$790.0K -$960.0K
YoY Change -86.66% -17.71% -147.29%
Cash From Investing Activities -$990.0K -$900.0K -$1.340M
YoY Change -86.64% -32.84% -169.07%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -33.70M 6.330M 1.820M
YoY Change 28.72% 247.8% 355.0%
NET CHANGE
Cash From Operating Activities 18.50M 16.97M 18.89M
Cash From Investing Activities -990.0K -900.0K -1.340M
Cash From Financing Activities -33.70M 6.330M 1.820M
Net Change In Cash -16.19M 22.40M 19.37M
YoY Change 22.0% 15.64% -373.59%
FREE CASH FLOW
Cash From Operating Activities $18.50M $16.97M $18.89M
Capital Expenditures -$80.00K -$110.0K -$380.0K
Free Cash Flow $18.58M $17.08M $19.27M
YoY Change -11.19% -11.36% -306.54%

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34928205 USD
us-gaap Investment Advisory Fees
InvestmentAdvisoryFees
103085767 USD
CY2017Q3 us-gaap Investment Income Net
InvestmentIncomeNet
2767747 USD
us-gaap Investment Income Net
InvestmentIncomeNet
9673720 USD
CY2018Q3 us-gaap Investment Income Net
InvestmentIncomeNet
5210332 USD
us-gaap Investment Income Net
InvestmentIncomeNet
7216278 USD
CY2017Q4 us-gaap Investments
Investments
138476022 USD
CY2018Q3 us-gaap Investments
Investments
212389477 USD
CY2018Q3 us-gaap Investments
Investments
212400000 USD
CY2017Q3 us-gaap Labor And Related Expense
LaborAndRelatedExpense
14446102 USD
us-gaap Labor And Related Expense
LaborAndRelatedExpense
42438985 USD
CY2018Q3 us-gaap Labor And Related Expense
LaborAndRelatedExpense
15441623 USD
us-gaap Labor And Related Expense
LaborAndRelatedExpense
44401217 USD
CY2017Q4 us-gaap Liabilities
Liabilities
57867693 USD
CY2018Q3 us-gaap Liabilities
Liabilities
61436873 USD
CY2017Q4 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
250388319 USD
CY2018Q3 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
346142760 USD
CY2017Q4 us-gaap Liability For Uncertain Tax Positions Current
LiabilityForUncertainTaxPositionsCurrent
0 USD
CY2018Q3 us-gaap Liability For Uncertain Tax Positions Current
LiabilityForUncertainTaxPositionsCurrent
800000 USD
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
3232926 USD
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
17658634 USD
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-11136361 USD
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-3272635 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
40603955 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
9631326 USD
CY2017Q3 us-gaap Net Income Loss
NetIncomeLoss
12698847 USD
us-gaap Net Income Loss
NetIncomeLoss
38094182 USD
CY2018Q3 us-gaap Net Income Loss
NetIncomeLoss
15208053 USD
us-gaap Net Income Loss
NetIncomeLoss
42567882 USD
CY2017Q3 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
459252 USD
us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
1156385 USD
CY2018Q3 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
1191317 USD
us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
1671640 USD
us-gaap Net Income Loss Attributable To Redeemable Noncontrolling Interest
NetIncomeLossAttributableToRedeemableNoncontrollingInterest
-1671640 USD
us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 Segment
CY2017Q3 us-gaap Operating Expenses
OperatingExpenses
19884297 USD
us-gaap Operating Expenses
OperatingExpenses
58757689 USD
CY2018Q3 us-gaap Operating Expenses
OperatingExpenses
20555802 USD
us-gaap Operating Expenses
OperatingExpenses
59712027 USD
CY2017Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
16887332 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
48595555 USD
CY2018Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
16915845 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
51469336 USD
CY2018Q3 us-gaap Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
4000016 USD
CY2018Q3 us-gaap Operating Leases Future Minimum Payments Due In Five Years
OperatingLeasesFutureMinimumPaymentsDueInFiveYears
624179 USD
CY2018Q3 us-gaap Operating Leases Future Minimum Payments Due In Four Years
OperatingLeasesFutureMinimumPaymentsDueInFourYears
624179 USD
CY2018Q3 us-gaap Operating Leases Future Minimum Payments Due In Three Years
OperatingLeasesFutureMinimumPaymentsDueInThreeYears
614721 USD
CY2018Q3 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
586350 USD
CY2018Q3 us-gaap Operating Leases Future Minimum Payments Due Thereafter
OperatingLeasesFutureMinimumPaymentsDueThereafter
1404000 USD
CY2018Q3 us-gaap Operating Leases Future Minimum Payments Remainder Of Fiscal Year
OperatingLeasesFutureMinimumPaymentsRemainderOfFiscalYear
146587 USD
CY2017Q3 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
235272 USD
us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
700926 USD
CY2018Q3 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
238014 USD
us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
732318 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
2789949 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
1602528 USD
us-gaap Payments To Acquire Investments
PaymentsToAcquireInvestments
13372301 USD
us-gaap Payments To Acquire Investments
PaymentsToAcquireInvestments
4362077 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
509750 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
699917 USD
CY2017Q3 us-gaap Performance Fees
PerformanceFees
0 USD
us-gaap Performance Fees
PerformanceFees
0 USD
CY2018Q3 us-gaap Performance Fees
PerformanceFees
600000.0 USD
us-gaap Performance Fees
PerformanceFees
600000.0 USD
CY2017Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
1000000 shares
CY2018Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
1000000 shares
CY2017Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
shares
CY2018Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
shares
CY2017Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
shares
CY2018Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
shares
CY2017Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2018Q3 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2017Q4 us-gaap Prepaid Expense Current And Noncurrent
PrepaidExpenseCurrentAndNoncurrent
2073343 USD
CY2018Q3 us-gaap Prepaid Expense Current And Noncurrent
PrepaidExpenseCurrentAndNoncurrent
2305652 USD
us-gaap Proceeds From Payments To Minority Shareholders
ProceedsFromPaymentsToMinorityShareholders
6022875 USD
us-gaap Proceeds From Payments To Minority Shareholders
ProceedsFromPaymentsToMinorityShareholders
19261162 USD
us-gaap Proceeds From Sale Maturity And Collections Of Investments
ProceedsFromSaleMaturityAndCollectionsOfInvestments
2745690 USD
us-gaap Proceeds From Sale Maturity And Collections Of Investments
ProceedsFromSaleMaturityAndCollectionsOfInvestments
1789359 USD
CY2017Q3 us-gaap Profit Loss
ProfitLoss
13158099 USD
us-gaap Profit Loss
ProfitLoss
39250567 USD
CY2018Q3 us-gaap Profit Loss
ProfitLoss
16399370 USD
us-gaap Profit Loss
ProfitLoss
44239522 USD
CY2017Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
4057901 USD
CY2018Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
3908750 USD
CY2017Q4 us-gaap Redeemable Noncontrolling Interest Equity Carrying Amount
RedeemableNoncontrollingInterestEquityCarryingAmount
20076806 USD
CY2018Q3 us-gaap Redeemable Noncontrolling Interest Equity Carrying Amount
RedeemableNoncontrollingInterestEquityCarryingAmount
60714693 USD
CY2017Q4 us-gaap Redeemable Noncontrolling Interest Equity Common Fair Value
RedeemableNoncontrollingInterestEquityCommonFairValue
20076806 USD
CY2018Q3 us-gaap Redeemable Noncontrolling Interest Equity Common Fair Value
RedeemableNoncontrollingInterestEquityCommonFairValue
60714693 USD
CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
73369672 USD
CY2018Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
115937554 USD
CY2017Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
36771629 USD
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
107353244 USD
CY2018Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
37471647 USD
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
111181363 USD
CY2017Q3 us-gaap Revenues
Revenues
36771629 USD
us-gaap Revenues
Revenues
107353244 USD
CY2018Q3 us-gaap Revenues
Revenues
37471647 USD
us-gaap Revenues
Revenues
111181363 USD
CY2017Q3 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
1230306 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
3612877 USD
CY2018Q3 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
1281856 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
3793382 USD
us-gaap Share Based Compensation
ShareBasedCompensation
6258112 USD
us-gaap Share Based Compensation
ShareBasedCompensation
6472823 USD
CY2017Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber
191900 shares
CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber
207500 shares
us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
1658358 USD
us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
3892424 USD
us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
4109197 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
172443820 USD
CY2018Q3 us-gaap Stockholders Equity
StockholdersEquity
223991194 USD
CY2017Q4 us-gaap Taxes Payable Current
TaxesPayableCurrent
0 USD
CY2018Q3 us-gaap Taxes Payable Current
TaxesPayableCurrent
640811 USD
CY2017Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
3461418 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
3447976 shares
CY2018Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
3532346 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
3514517 shares
CY2017Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
3454178 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
3442402 shares
CY2018Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
3530586 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
3512547 shares
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Reclassification</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain prior period amounts and disclosures may have been reclassified to conform to the current period's financial presentation.</font></div></div>
us-gaap Revenue Recognition Accounting Policy Gross And Net Revenue Disclosure
RevenueRecognitionAccountingPolicyGrossAndNetRevenueDisclosure
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Revenue Recognition &#8211; Mutual Fund Administration</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">DHCM has an administrative and transfer agency services agreement with the Funds under which DHCM performs certain services for each Fund. These services include performance obligations including mutual fund administration, fund accounting, transfer agency and other related functions. These services are performed concurrently under our agreement with the Funds, and all performance obligations to provide these administrative services are satisfied over time, and the Company recognizes revenue as time passes. For performing these services each Fund pays DHCM a fee, which is calculated using an annual rate times the average daily net assets of each respective share class. These fees are thereby constrained and represent variable consideration, and are excluded from revenue until the AUM on which we bill the Funds is no longer subject to market fluctuations. </font></div><div style="line-height:120%;padding-top:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Funds have selected and contractually engaged certain vendors to fulfill various services to benefit the Funds&#8217; shareholders or to satisfy regulatory requirements of the Funds. These services include, among others, required shareholder mailings, federal and state registrations, and legal and audit services. DHCM, in fulfilling a portion of its role under the administration agreement with the Funds, acts as agent to pay these obligations of the Funds. Each vendor is independently responsible for fulfillment of the services it has been engaged to provide and negotiates fees and terms with the management and board of trustees of the Funds. The fee that each Fund pays to DHCM is reviewed annually by the Funds&#8217; board of trustees and specifically takes into account the contractual expenses that DHCM pays on behalf of the Funds. As a result, DHCM is not involved in the delivery or pricing of these services and bears no risk related to these services. Revenue has been recorded net of these Fund related expenses. In addition, DHCM advances the upfront commissions that are paid to brokers who sell Class C shares of the Funds. These advances are capitalized and amortized over </font><font style="font-family:inherit;font-size:10pt;">12 months</font><font style="font-family:inherit;font-size:10pt;"> to correspond with the repayments DHCM receives from the principal underwriter to recoup this commission advancement.</font></div><div style="line-height:120%;padding-top:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"></font></div></div>
us-gaap Revenue Recognition Services Management Fees
RevenueRecognitionServicesManagementFees
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Revenue Recognition &#8211; Investment Advisory Fees</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company's investment advisory contracts have a single performance obligation (the investment advisory services provided to the client) as the promised services are not separately identifiable from other promises in the contracts and, therefore, are not distinct. All performance obligations to provide advisory services are satisfied over time and the Company recognizes revenue as time passes.</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The fees we receive for our services under our investment advisory contracts are based on our AUM, which changes based on the value of securities held under each advisory contract. These fees are thereby constrained and represent variable consideration, and are excluded from revenue until the AUM on which our client is billed is no longer subject to market fluctuations. </font></div><div style="line-height:120%;padding-top:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Revenue Recognition &#8211; Variable Rate Fees</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company manages certain client accounts that provide for variable rate fees. These fees are calculated based on client investment results over rolling </font><font style="font-family:inherit;font-size:10pt;">five</font><font style="font-family:inherit;font-size:10pt;">-year periods. The Company records variable rate fees at the end of the contract measurement period because the variable fees earned are constrained based on movements in the financial markets.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Use of Estimates</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions related to the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.</font></div></div>

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