Global Brokerage, Inc.
Consolidated Statement of Financial Condition
As of September 30, 2021
(In thousands, except share data)
(Unaudited)
Assets | ||
Current assets | ||
Cash and cash equivalents | $ | 59,525 |
Cash and cash equivalents, held for customers | 274,148 | |
Due from brokers | 1,263 | |
Accounts receivable, net | 5,014 | |
Other assets - Current | 5,245 | |
Tax receivable | 102 | |
Total current assets | 345,297 | |
Deferred tax asset | 182 | |
Office, communication and computer equipment, net | 23,023 | |
Operating lease right-of-use-assets | 10,677 | |
Other intangible assets, net | 1,007 | |
Other assets - Non-current | 3,767 | |
Total assets | $ | 383,953 |
Liabilities, Redeemable non-controlling interest and Stockholders' deficit | ||
Current liabilities | ||
Customer account liabilities | $ | 274,148 |
Accounts payable and accrued expenses | 20,301 | |
Due to brokers | 1,309 | |
Operating lease liabilities - current | 4,709 | |
Credit Agreement | 71,634 | |
Other liabilities - current | 256 | |
Total current liabilities | 372,357 | |
New Secured Notes | 182,090 | |
Operating lease liabilities - Non-current | 11,691 | |
Other liabilities - Non-current | 1,325 | |
Total liabilities | 567,463 | |
Redeemable non-controlling interest | - | |
Stockholders' deficit | ||
Class A common stock, par value $0.01 per share; 3,000,000,000 shares authorized, | 82 | |
8,247,997 shares issued and outstanding | ||
Additional paid-in-capital | 361,197 | |
Accumulated deficit | (542,482) | |
Accumulated other comprehensive loss | (2,344) | |
Total stockholders' deficit Global Brokerage, Inc. | (183,547) | |
Other non-controlling interests | 37 | |
Total stockholders' deficit | (183,510) | |
Total liabilities, Redeemable non-controlling interest and Stockholders' deficit | $ | 383,953 |
Global Brokerage, Inc.
September 30, 2021 | |||||
Revenues | Three Months | Nine Months | |||
Trading revenue | $ | 24,282 | $ | 78,075 | |
Interest Income | 37 | 126 | |||
Brokerage interest expense | (276) | (778) | |||
Net interest expense | (239) | (652) | |||
Other income | 357 | 1,241 | |||
Total net revenues | 24,400 | 78,664 | |||
Operating Expenses | |||||
Compensation and benefits | 13,405 | 41,199 | |||
Referring broker fees | 2,176 | 6,502 | |||
Advertising and marketing | 4,813 | 16,399 | |||
Communication and technology | 2,608 | 10,204 | |||
Trading costs, prime brokerage and clearing fees | 432 | 1,487 | |||
General and administrative | 6,695 | 20,046 | |||
Depreciation and amortization | 2,753 | 7,465 | |||
Total operating expenses | 32,882 | 103,302 | |||
Operating Loss | (8,482) | (24,638) | |||
Other Expense | |||||
Interest on borrowings | 9,467 | 27,126 | |||
Loss from continuing operations before income taxes | (17,949) | (51,764) | |||
Income tax provision | 48 | 456 | |||
Loss from continuing operations | (17,997) | (52,220) | |||
Loss from discontinued operations, net of tax | (21) | (34) | |||
Net Loss | (18,018) | (52,254) | |||
Net loss attributable to redeemable non-controlling interest in | (7,975) | (24,600) | |||
FXCM Group, LLC | |||||
Net loss attributable to other non-controlling interests | - | (1) | |||
Net loss attributable to Global Brokerage, Inc. | $ | (10,043) | $ | (27,653) | |
Loss from continuing operations attributable to Global Brokerage, Inc. | (10,043) | $ | (27,653) | ||
Loss from discontinued operations attributable to Global Brokerage, | - | - | |||
Inc. | |||||
Net loss attributable to Global Brokerage, Inc. | $ | (10,043) | $ | (27,653) | |
Weighted average shares of Class A common stock outstanding - | 8,248 | 8,248 | |||
Basic and Diluted | |||||
Net loss per share attributable to stockholders of Class A common | |||||
stock of Global Brokerage, Inc. - Basic and Diluted: | |||||
Continuing operations | $ | (1.22) | $ | (3.35) | |
Discontinued operations | - | - | |||
Net loss attributable to Global Brokerage, Inc. | $ | (1.22) | $ | (3.35) | |
Global Brokerage, Inc.
Consolidated Statements of Comprehensive (Loss) Income
For the Three and Nine Months Ended September 30, 2021
(In thousands, unaudited)
September 30, 2021 | |||||
Three Months | Nine Months | ||||
Net loss | $ | (18,018) | $ | (52,254) | |
Other comprehensive loss | |||||
Foreign currency translation loss, net of tax | (458) | (898) | |||
Other comprehensive loss income, net of tax | (18,476) | (53,152) | |||
Comprehensive income | |||||
Comprehensive loss attributable to redeemable non-controlling | (8,204) | (25,049) | |||
interest in FXCM Group, LLC | |||||
Comprehensive loss attributable to other non-controlling interests | - | (1) | |||
Comprehensive loss attributable to Global Brokerage, Inc. | $ | (10,272) | $ | (28,102) | |
Global Brokerage, Inc.
Consolidated Statement of Cash Flows
For the Nine Months Ended September 30, 2021
(In thousands, unaudited)
Cash Flows From Operating Activities | ||
Net loss | $ | (52,254) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation | 7,465 | |
Right-of-use assets amortization | 4,003 | |
Net deferred taxes | 14 | |
Amortization of discount - New Secured Notes | 15,805 | |
Amortization of issuance cost - New Secured Notes | 166 | |
Paid-in-kind interest - New Secured Notes | 14,593 | |
Changes in operating assets and liabilities: | ||
Due from brokers | (247) | |
Accounts receivable, net | (2,974) | |
Tax receivable | 121 | |
Other assets - Current | (524) | |
Other assets - Non-current | 133 | |
Customer account liabilities | 5,716 | |
Accounts payable and accrued expenses | (5,021) | |
Lease liabilities | (4,897) | |
Other liabilities - Current | 12 | |
Other liabilities - Non-current | (145) | |
Due to brokers | 65 | |
Foreign currency remeasurement loss | 414 | |
Net cash used in operating activities | (17,555) | |
Cash Flows From Investing Activities | ||
Purchases of office, communication and computer equipment | (2,117) | |
Payments for software development costs | (5,504) | |
Purchase of intangible assets | (119) | |
Net cash used in investing activities | (7,740) | |
Effect of foreign currency exchange rate changes on Cash and cash equivalents and Cash and | (1,051) | |
cash equivalents, held for customers | ||
Net decrease in Cash and cash equivalents and Cash and cash equivalents, held for | (26,346) | |
customers | ||
Cash and cash equivalents and Cash and cash equivalents, held for customers: | ||
Beginning of period | 360,019 | |
End of period | $ | 333,673 |
Global Brokerage, Inc.
Consolidated Statement of Cash Flows - (continued)
For the Nine Months Ended September 30, 2021
(In thousands, unaudited)
Cash and cash equivalents | $ | 59,525 |
Cash and cash equivalents, held for customers | 274,148 | |
Cash and cash equivalents and Cash and cash equivalents, held for customers - End of | $ | 333,673 |
period | ||
Supplemental disclosures of cash flow activities | ||
Net cash paid for taxes | $ | 358 |
Supplemental disclosure of non-cash investing activities | ||
Non-cash recognition of lease right-of-use assets | $ | 1,810 |
Escrow withheld in connection with acquisition of intangible | $ | 200 |
Supplemental disclosure of non-cash financing activities | ||
Paid-in-kind interest - New Secured Notes | $ | 14,593 |
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Global Brokerage Inc. published this content on 12 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2021 14:33:08 UTC.