v3.25.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Measurements [Abstract]  
Fair Value Measurements

5. Fair Value Measurements

 

Overview

 

ASC 820 defines fair value, establishes a framework for measuring fair value as well as a hierarchy of fair value inputs. Refer to the below as well as Note 2 – Summary of Significant Accounting Policies in the Company’s 2024 Form 10-K for further information regarding fair value hierarchy, valuation techniques and other items related to fair value measurements.

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

 

The tables below present, by level within the fair value hierarchy, financial assets and liabilities, measured at fair value on a recurring basis for the periods indicated. As required by ASC Topic 820, financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the respective fair value measurement.

 

   As of June 30, 2025 
   Level 1   Level 2   Level 3   Total 
Assets                
Cash and securities segregated for regulatory purposes                
U.S. government securities  $44,837,000   $
—
   $
—
   $44,837,000 
                     
Securities owned, at fair value                    
U.S. government securities  $16,631,000   $
—
   $
—
   $16,631,000 
Certificates of deposit   
—
    112,000    
—
    112,000 
Municipal securities   
—
    325,000    
—
    325,000 
Equity securities   2,305,000    102,000    
—
    2,407,000 
Total Securities owned, at fair value  $18,936,000   $539,000   $
—
   $19,475,000 
                     
Liabilities                    
Securities sold, not yet purchased, at fair value                    
Options  $7,000   $
—
   $
—
   $7,000 
Total Securities sold, not yet purchased, at fair value  $7,000   $
—
   $
—
   $7,000 

 

   As of December 31, 2024 
   Level 1   Level 2   Level 3   Total 
Assets                
Cash and securities segregated for regulatory purposes                
U.S. government securities  $68,758,000   $
—
   $
—
   $68,758,000 
                     
Securities owned, at fair value                    
U.S. government securities  $20,086,000   $
—
   $
—
   $20,086,000 
Certificates of deposit   
—
    112,000    
—
    112,000 
Corporate bonds   
—
    2,000    
—
    2,000 
Options   58,000    
—
    
—
    58,000 
Equity securities   1,055,000    72,000    
—
    1,127,000 
Total Securities owned, at fair value  $21,199,000   $186,000   $
—
   $21,385,000 
                     
Liabilities                    
Securities sold, not yet purchased, at fair value                    
Equity securities  $1,000   $
—
   $
—
   $1,000 
Options   25,000              25,000 
Total Securities sold, not yet purchased, at fair value  $26,000   $
—
   $
—
   $26,000 

The Company had U.S. government securities with the market values and maturity dates for the periods indicated below.

 

   As of
June 30,
2025		 
Maturing in 2025  $44,837,000 
Maturing in 2026   16,542,000 
Accrued interest   89,000 
Total Market value  $61,468,000 

 

    As of
December 31,
2024		 
Maturing in 2025  $80,739,000 
Maturing in 2026   8,019,000 
Accrued interest   86,000 
Total Market value  $88,844,000 

 

Financial Assets and Liabilities Not Carried at Fair Value

 

Financial assets and liabilities not measured at fair value are recorded at carrying value, which approximates fair value either due to their short-term nature, or in the case of long-term assets or liabilities, management has determined the difference in the carrying value and fair value is immaterial. The tables below represents financial instruments in which the ending balances as of June 30, 2025 and December 31, 2024 are not carried at fair value in the statements of financial condition:

 

   As of June 30, 2025 
   Carrying Value   Fair Value   Level 1   Level 2   Level 3 
Financial assets, not measured at fair value                    
Cash and cash equivalents  $28,949,000   $28,949,000   $28,949,000   $
—
   $
—
 
Cash – segregated for regulatory purposes   101,214,000    101,214,000    101,214,000    
—
    
—
 
Securities borrowed   238,721,000    238,721,000    
—
    238,721,000    
—
 
Receivables from customers   79,858,000    79,858,000    
—
    79,858,000    
—
 
Receivables from non-customers   1,411,000    1,411,000    
—
    1,411,000    
—
 
Receivables from broker-dealers and clearing
organizations		   5,600,000    5,600,000    
—
    5,600,000    
—
 
Other receivables   4,869,000    4,869,000    
—
    4,869,000    
—
 
Deposits with broker-dealers and clearing
organizations		   6,877,000    6,877,000    
—
    6,877,000    
—
 
Total financial assets, not measured at fair value  $467,499,000   $467,499,000   $130,163,000   $337,336,000   $
—
 
                          
Financial liabilities, not measured at fair value                         
Securities loaned  $235,674,000   $235,674,000   $
—
   $235,674,000   $
—
 
Payables to customers   217,870,000    217,870,000    
—
    217,870,000    
—
 
Payables to non-customers   226,000    226,000    
—
    226,000    
—
 
Drafts payable   1,179,000    1,179,000    
—
    1,179,000    
—
 
Payables to broker-dealers and clearing
organizations		   1,179,000    1,179,000    
—
    1,179,000    
—
 
Deferred contract incentive   71,000    71,000    
—
    71,000    
—
 
Other deferred revenue   20,000    20,000    
—
    20,000    
—
 
Long-term debt   4,184,000    4,184,000    
—
    4,184,000    
—
 
Contract termination liability   1,673,000    1,673,000    
—
    1,673,000    
—
 
Total financial liabilities, not measured at fair value  $462,076,000   $462,076,000   $
—
   $462,076,000   $
—
 
   As of December 31, 2024 
   Carrying Value   Fair Value   Level 1   Level 2   Level 3 
Financial assets, not measured at fair value                    
Cash and cash equivalents  $32,629,000   $32,629,000   $32,629,000   $
—
   $
—
 
Cash – segregated for regulatory purposes   135,829,000    135,829,000    135,829,000    
—
    
—
 
Securities borrowed   139,040,000    139,040,000    
—
    139,040,000    
—
 
Receivables from customers   84,367,000    84,367,000    
—
    84,367,000    
—
 
Receivables from non-customers   607,000    607,000    
—
    607,000    
—
 
Receivables from broker-dealers and clearing
organizations		   3,920,000    3,920,000    
—
    3,920,000    
—
 
Other receivables   2,744,000    2,744,000    
—
    2,744,000    
—
 
Deposits with broker-dealers and clearing
organizations		   4,227,000    4,227,000    
—
    4,227,000    
—
 
Total financial assets, not measured at fair value  $403,363,000   $403,363,000   $168,458,000   $234,905,000   $
—
 
                          
Financial liabilities, not measured at fair value                         
Securities loaned  $184,962,000   $184,962,000   $
—
   $184,962,000   $
—
 
Payables to customers   227,129,000    227,129,000    
—
    227,129,000    
—
 
Payables to non-customers   3,297,000    3,297,000    
—
    3,297,000    
—
 
Drafts payable   1,331,000    1,331,000    
—
    1,331,000    
—
 
Payables to broker-dealers and clearing
organizations		   444,000    444,000    
—
    444,000    
—
 
Deferred contract incentive   496,000    496,000    
—
    496,000    
—
 
Long-term debt   4,228,000    4,228,000    
—
    4,228,000    
—
 
Contract termination liability   2,567,000    2,567,000    
—
    2,567,000    
—
 
Total financial liabilities, not measured at fair value  $424,454,000   $424,454,000   $
—
   $424,454,000   $
—