XML 20 R11.htm IDEA: XBRL DOCUMENT
v3.22.1

Fair Value Measurements | 3 Months Ended
--- | ---
Mar. 31, 2022
Fair Value Disclosures [Abstract] |
Fair Value Measurements | 5. Fair Value Measurements Overview ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a hierarchy of fair value inputs. Refer to the below as well as Note 6 – Fair Value Measurements in the Company’s 2021 Form 10-K for further information regarding fair value hierarchy, valuation techniques and other items related to fair value measurements. Municipal securities: Municipal securities are valued using recently executed transactions, market price quotations (when observable), bond spreads from independent external parties such as vendors and brokers, adjusted for any basis difference between cash and derivative instruments. The spread data used is for the same maturity as the bond. Municipal securities are generally categorized in level 2 of the fair value hierarchy. Options: Options are valued based on quoted prices from the exchange. To the extent these securities are actively traded, valuation adjustments are not applied, and they are categorized in level 1 of the fair value hierarchy. Securities quoted in inactive markets or with observable inputs are categorized into level 2. If there are no observable inputs or quoted prices, securities are categorized as level 3 assets in the fair value hierarchy. Level 3 assets are not actively traded and subjective estimates based on managements’ assumptions are utilized for valuation. Other equity investment in related party, at fair value: The Company’s other equity investments in related party are investments in privately held companies. The transaction price, excluding transaction costs, is the best estimate of fair value at acquisition. When evidence supports a change to the carrying value from the transaction price, then adjustments are made to reflect expected exit values in the investment’s principal market under current market conditions. Privately held equity investments are typically valued by using a market approach. Under the fair value hierarchy, these investments are classified as level 3. As of March 31, 2022, the unobservable inputs utilized to estimate the fair value were the original transaction price adjusted for the performance of the investment during the period. -8- Unit investment trusts (“UITs”): Units of UITs are carried at redemption value, which represents fair value. Units of UITs are categorized as level 2. Fair Value Hierarchy Tables The following tables present the Company's fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of the periods presented.
|  | As of March 31, 2022
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and securities segregated for regulatory purposes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government securities* |  | $ | 97,655,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 97,655,000 |
Securities owned, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government securities** |  | $ | 2,860,000 |  |  | $ | 172,000 |  |  | $ | — |  |  | $ | 3,032,000 |
Certificates of deposit |  |  | — |  |  |  | 91,000 |  |  |  | — |  |  |  | 91,000 |
Municipal securities |  |  | — |  |  |  | 10,000 |  |  |  | — |  |  |  | 10,000 |
Corporate bonds |  |  | — |  |  |  | 11,000 |  |  |  | — |  |  |  | 11,000 |
Options |  |  | 1,000 |  |  |  | — |  |  |  | — |  |  |  | 1,000 |
Equity securities |  |  | 116,000 |  |  |  | 139,000 |  |  |  | — |  |  |  | 255,000 |
Total Securities owned, at fair value |  | $ | 2,977,000 |  |  | $ | 423,000 |  |  | $ | — |  |  | $ | 3,400,000 |
Other equity investment in related party, at fair value |  | $ | — |  |  | $ | — |  |  | $ | 1,036,000 |  |  | $ | 1,036,000 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities sold, not yet purchased, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  | $ | — |  |  | $ | 27,000 |  |  | $ | — |  |  | $ | 27,000 |
UITs |  |  | — |  |  |  | 25,000 |  |  |  | — |  |  |  | 25,000 |
Total Securities sold, not yet purchased, at fair value |  | $ | — |  |  | $ | 52,000 |  |  | $ | — |  |  | $ | 52,000 |
|  | As of December 31, 2021
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities owned, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government securities** |  | $ | 2,966,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,966,000 |
Certificates of deposit |  |  | — |  |  |  | 91,000 |  |  |  | — |  |  |  | 91,000 |
Corporate bonds |  |  | — |  |  |  | 12,000 |  |  |  | — |  |  |  | 12,000 |
Equity securities |  |  | 489,000 |  |  |  | 433,000 |  |  |  | — |  |  |  | 922,000 |
Total Securities owned, at fair value |  | $ | 3,455,000 |  |  | $ | 536,000 |  |  | $ | — |  |  | $ | 3,991,000 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities sold, not yet purchased, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  | $ | — |  |  | $ | 24,000 |  |  | $ | — |  |  | $ | 24,000 |
Total Securities sold, not yet purchased, at fair value |  | $ | — |  |  | $ | 24,000 |  |  | $ | — |  |  | $ | 24,000 |
*As of March 31, 2022, the Company had U.S. government securities with market values of approximately $9.9 million, $63.4 million, and $24.4 million and corresponding maturity dates of August 31, 2023, December 31, 2023 and January 31, 2024, respectively. As of December 31, 2021, the Company did not have any U.S. government securities classified as cash and securities segregated for regulatory purposes. **As of both March 31, 2022 and December 31, 2021, the U.S. government securities had a maturity date of August 15, 2024. The table below summarizes the total carrying value of Level 3 equity assets and changes made during the periods presented. -9- Changes in Level 3 Investments
|  | Three Months Ended March 31, 2022
|  | Amount |
Balance – January 1, 2022 | $ | — |
Purchases |  | 1,000,000 |
Unrealized gain |  | 36,000 |
Balance – March 31, 2022 | $ | 1,036,000 |
Refer to the below as well as Note 6 – Fair Value Measurements in the Company’s 2021 Form 10-K for further information regarding financial instruments not carried at fair value on the statements of financial condition as of March 31, 2022 and December 31, 2021. Short-term financial instruments: The carrying value of short-term financial instruments, including cash and cash equivalents as well as cash and securities segregated for regulatory purposes, are recorded at amounts that approximate the fair value of these instruments. These financial instruments generally expose the Company to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market rates. The Company had no cash equivalents for regulatory purposes as of March 31, 2022 and December 31, 2021. Securities segregated for regulatory purposes consist solely of U.S. government securities and are included in the fair value hierarchy table above. Cash and cash equivalents and cash and securities segregated for regulatory purposes are classified as level 1.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI https://asc.fasb.org/topic&trid=2155941 + Details
Name: | us-gaap_FairValueMeasurementInputsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration