UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
CURRENT REPORT
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| Item 2.06 | Material Impairments |
In February 2021, WisdomTree Investments, Inc. (the “Company”) disclosed in its Annual Report on Form 10-K for the year ended December 31, 2020 its decision to adopt a “remote first” philosophy with plans to significantly reduce its office footprints in New York and London. In connection with this decision, during the quarter ended March 31, 2021, the Company exited its London lease. On September 9, 2021, the Company entered into a Surrender Agreement to terminate the lease for its principal executive office at 245 Park Avenue, New York, New York effective immediately. In consideration for the landlord’s agreement to enter into the Surrender Agreement and accelerate the expiration date of the term of the New York lease from August 31, 2029, the Company paid a termination fee of approximately $13.0 million. As a result, on September 9, 2021, the Company concluded that for the quarter ending September 30, 2021, it expects to recognize an estimated impairment charge of approximately $16.0 million, representing the write-off of the right-of-use asset, leasehold improvements and fixed assets, partly offset by a reduction in operating lease liabilities.
Cost savings are estimated to be approximately $0.2 million and $0.6 million during the third and fourth quarters of 2021, respectively, when compared to actual occupancy and depreciation expense recognized during the second quarter of 2021. Cost savings for the year ending December 31, 2022 resulting from the reduction in the New York and London office footprints are estimated to be approximately $3.5 million when compared to actual occupancy and depreciation expense recognized during the year ended December 31, 2020. Anticipated rent for new office space in New York and London with a smaller footprint is included in these estimates.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| WisdomTree Investments, Inc. | ||||||
| Date: September 13, 2021 | By: | /s/ Bryan Edmiston | ||||
| Bryan Edmiston | ||||||
| Chief Financial Officer | ||||||
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