Equity Method Investments (Tables)

3 Months Ended

Mar. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Joint Venture Revenues and Net Income (Loss)

Note 6 – Equity Method Investments

In March 2020, HGC Origination I LLC and HGC Funding I LLC were formed as joint ventures with a partner for purposes of conducting business relating to the sourcing, origination and funding of loans to debt purchasing clients. In April 2022, KNFH LLC, of which the Company holds a 25% share, was formed to purchase certain real estate assets and machinery and equipment among partners in a joint venture. In December 2022, DHC8 LLC, of which the Company holds a 13.33% share, was formed to provide funding and receive principal and interest payments as a result of the initial investment. KNFH LLC and DHC8 LLC are joint ventures formed in connection with the Company’s Industrial Assets Division, whereas HGC Origination I LLC and HGC Funding I LLC were formed in connection with the Financial Assets Division.

The table below details the Company’s joint venture revenues and earnings (in thousands):

	Three Months Ended March 31,
	2023			2022
Revenues:
KNFH LLC	$	440		$	—
DHC8 LLC		445			—
HGC Funding I LLC and Origination I LLC		1,297			327
Total revenues	$	2,182		$	327
Operating income (loss):
KNFH LLC	$	(10	)	$	—
DHC8 LLC		378			—
HGC Funding I LLC and Origination I LLC		1,304			327
Total operating income	$	1,672		$	327

Schedule of the Components of Assets and Liabilities

The table below details the summarized components of assets and liabilities of the Company’s joint ventures, as of March 31, 2023 and December 31, 2022 (in thousands):

	March 31,		December 31,
	2023		2022
Assets:
KNFH LLC	$	528	$	—
DGC8 LLC		8,332		8,561
HGC Funding I LLC and Origination I LLC		49,547		53,385
Total assets	$	58,407	$	61,946
Liabilities:
KNFH LLC	$	385	$	47
DGC8 LLC		1,165		1,028
HGC Funding I LLC and Origination I LLC		21		1,504
Total liabilities	$	1,571	$	2,579