| 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 2025 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, 2026 | | | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | | Assets | | | | | | | | | | | | | | Cash and securities segregated for regulatory purposes | | | | | | | | | | | | | | U.S. government securities | | $ | 37,927,000 | | | $ | — | | | $ | — | | | $ | 37,927,000 | | | | | | | | | | | | | | | | | | | | | Securities owned, at fair value | | | | | | | | | | | | | | | | | | U.S. government securities | | $ | 11,565,000 | | | $ | — | | | $ | — | | | $ | 11,565,000 | | | Certificates of deposit | | | — | | | | 112,000 | | | | — | | | | 112,000 | | | Corporate bonds | | | — | | | | 1,000 | | | | — | | | | 1,000 | | | Equity securities | | | 1,891,000 | | | | 83,000 | | | | — | | | | 1,974,000 | | | Total Securities owned, at fair value | | $ | 13,456,000 | | | $ | 196,000 | | | $ | — | | | $ | 13,652,000 | | | | | | | | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | | | | | | | | Securities sold, not yet purchased, at fair value | | | | | | | | | | | | | | | | | | Equity securities | | $ | 75,000 | | | $ | — | | | $ | — | | | $ | 75,000 | | | Total Securities sold, not yet purchased, at fair value | | $ | 75,000 | | | $ | — | | | $ | — | | | $ | 75,000 | | | | | As of December 31, 2025 | | | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | | Assets | | | | | | | | | | | | | | Cash and securities segregated for regulatory purposes | | | | | | | | | | | | | | U.S. government securities | | $ | 34,601,000 | | | $ | — | | | $ | — | | | $ | 34,601,000 | | | | | | | | | | | | | | | | | | | | | Securities owned, at fair value | | | | | | | | | | | | | | | | | | U.S. government securities | | $ | 16,654,000 | | | $ | — | | | $ | — | | | $ | 16,654,000 | | | Certificates of deposit | | | — | | | | 113,000 | | | | — | | | | 113,000 | | | Equity securities | | | 3,001,000 | | | | 94,000 | | | | — | | | | 3,095,000 | | | Total Securities owned, at fair value | | $ | 19,655,000 | | | $ | 207,000 | | | $ | — | | | $ | 19,862,000 | | | | | | | | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | | | | | | | | Securities sold, not yet purchased, at fair value | | | | | | | | | | | | | | | | | | Equity securities | | $ | 150,000 | | | $ | — | | | $ | — | | | $ | 150,000 | | | Corporate bonds | | | — | | | | 1,000 | | | | — | | | | 1,000 | | | Options | | | 68,000 | | | | — | | | | — | | | | 68,000 | | | Total Securities sold, not yet purchased, at fair value | | $ | 218,000 | | | $ | 1,000 | | | $ | — | | | $ | 219,000 | | The Company had U.S. government securities with the market values and maturity dates for the periods indicated below. | | | As of
June 30,
2026 | | | Maturing in 2026 | | $ | 32,465,000 | | | Maturing in 2027 | | | 6,976,000 | | | Maturing in 2028 | | | 9,877,000 | | | Accrued interest | | | 173,000 | | | Total Market value | | $ | 49,491,000 | | | | | As of
December 31,
2025 | | | Maturing in 2026 | | $ | 44,135,000 | | | Maturing in 2027 | | | 7,028,000 | | | Accrued interest | | | 92,000 | | | Total Market value | | $ | 51,255,000 | | 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 represent financial instruments in which the ending balances as of June 30, 2026 and December 31, 2025 are not carried at fair value in the statements of financial condition: | | | As of June 30, 2026 | | | | | Carrying Value | | | Fair
Value | | | Level 1 | | | Level 2 | | | Level 3 | | | | | | | | | | | | | | | | | | | | Financial assets, not measured at fair value | | | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | 16,099,000 | | | $ | 16,099,000 | | | $ | 16,099,000 | | | $ | — | | | $ | — | | | Cash – segregated for regulatory purposes | | | 126,745,000 | | | | 126,745,000 | | | | 126,745,000 | | | | — | | | | — | | | Securities borrowed | | | 619,576,000 | | | | 619,576,000 | | | | — | | | | 619,576,000 | | | | — | | | Receivables from customers | | | 88,581,000 | | | | 88,581,000 | | | | — | | | | 88,581,000 | | | | — | | | Receivables from non-customers | | | 1,821,000 | | | | 1,821,000 | | | | — | | | | 1,821,000 | | | | — | | | Receivables from broker-dealers and clearing organizations | | | 18,078,000 | | | | 18,078,000 | | | | — | | | | 18,078,000 | | | | — | | | Notes receivable | | | 2,350,000 | | | | 2,350,000 | | | | | | | | 2,350,000 | | | | | | | Other receivables | | | 6,404,000 | | | | 6,404,000 | | | | — | | | | 6,404,000 | | | | — | | | Deposits with broker-dealers and clearing organizations | | | 6,365,000 | | | | 6,365,000 | | | | — | | | | 6,365,000 | | | | — | | | Total financial assets, not measured at fair value | | $ | 886,019,000 | | | $ | 886,019,000 | | | $ | 142,844,000 | | | $ | 743,175,000 | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | Financial liabilities, not measured at fair value | | | | | | | | | | | | | | | | | | | | | | Securities loaned | | $ | 609,796,000 | | | $ | 609,796,000 | | | $ | — | | | $ | 609,796,000 | | | $ | — | | | Payables to customers | | | 237,457,000 | | | | 237,457,000 | | | | — | | | | 237,457,000 | | | | — | | | Payables to non-customers | | | 6,000 | | | | 6,000 | | | | — | | | | 6,000 | | | | — | | | Drafts payable | | | 809,000 | | | | 809,000 | | | | — | | | | 809,000 | | | | — | | | Payables to broker-dealers and clearing organizations | | | 7,428,000 | | | | 7,428,000 | | | | — | | | | 7,428,000 | | | | — | | | Debt | | | 9,094,000 | | | | 9,094,000 | | | | — | | | | 9,094,000 | | | | — | | | Total financial liabilities, not measured at fair value | | $ | 864,590,000 | | | $ | 864,590,000 | | | $ | — | | | $ | 864,590,000 | | | $ | — | | | | | As of December 31, 2025 | | | | | Carrying Value | | | Fair
Value | | | Level 1 | | | Level 2 | | | Level 3 | | | Financial assets, not measured at fair value | | | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | 22,408,000 | | | $ | 22,408,000 | | | $ | 22,408,000 | | | $ | — | | | $ | — | | | Cash – segregated for regulatory purposes | | | 151,007,000 | | | | 151,007,000 | | | | 151,007,000 | | | | — | | | | — | | | Securities borrowed | | | 408,495,000 | | | | 408,495,000 | | | | — | | | | 408,495,000 | | | | — | | | Receivables from customers | | | 73,465,000 | | | | 73,465,000 | | | | — | | | | 73,465,000 | | | | — | | | Receivables from non-customers | | | 1,773,000 | | | | 1,773,000 | | | | — | | | | 1,773,000 | | | | — | | | Receivables from broker-dealers and clearing organizations | | | 6,801,000 | | | | 6,801,000 | | | | — | | | | 6,801,000 | | | | — | | | Other receivables | | | 4,522,000 | | | | 4,522,000 | | | | — | | | | 4,522,000 | | | | — | | | Deposits with broker-dealers and clearing organizations | | | 5,503,000 | | | | 5,503,000 | | | | — | | | | 5,503,000 | | | | — | | | Total financial assets, not measured at fair value | | $ | 673,974,000 | | | $ | 673,974,000 | | | $ | 173,415,000 | | | $ | 500,559,000 | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | Financial liabilities, not measured at fair value | | | | | | | | | | | | | | | | | | | | | | Securities loaned | | $ | 407,258,000 | | | $ | 407,258,000 | | | $ | — | | | $ | 407,258,000 | | | $ | — | | | Payables to customers | | | 237,193,000 | | | | 237,193,000 | | | | — | | | | 237,193,000 | | | | — | | | Payables to non-customers | | | 7,000 | | | | 7,000 | | | | — | | | | 7,000 | | | | — | | | Drafts payable | | | 2,829,000 | | | | 2,829,000 | | | | — | | | | 2,829,000 | | | | — | | | Payables to broker-dealers and clearing organizations | | | 769,000 | | | | 769,000 | | | | — | | | | 769,000 | | | | — | | | Debt | | | 9,139,000 | | | | 9,139,000 | | | | — | | | | 9,139,000 | | | | — | | | Contract termination liability | | | 819,000 | | | | 819,000 | | | | — | | | | 819,000 | | | | — | | | Total financial liabilities, not measured at fair value | | $ | 658,014,000 | | | $ | 658,014,000 | | | $ | — | | | $ | 658,014,000 | | | $ | — | |
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