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Fair Value Measurements | 6 Months Ended
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Jun. 30, 2024
Fair Value Measurements [Abstract] |
Fair Value Measurements | 7. 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 2023 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, 2024 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Cash and securities segregated for regulatory purposes |  |  |  |  |  |  |  |  |  |  |  |
U.S. government securities |  | $ | 86,554,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 86,554,000 |
Securities owned, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government securities |  | $ | 14,947,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 14,947,000 |
Certificates of deposit |  |  | — |  |  |  | 113,000 |  |  |  | — |  |  |  | 113,000 |
Municipal securities |  |  | — |  |  |  | 222,000 |  |  |  | — |  |  |  | 222,000 |
Corporate bonds |  |  | — |  |  |  | 59,000 |  |  |  | — |  |  |  | 59,000 |
Equity securities |  |  | 96,000 |  |  |  | 1,331,000 |  |  |  | — |  |  |  | 1,427,000 |
Total Securities owned, at fair value |  | $ | 15,043,000 |  |  | $ | 1,725,000 |  |  | $ | — |  |  | $ | 16,768,000 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities sold, not yet purchased, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  | $ | — |  |  | $ | 2,000 |  |  | $ | — |  |  | $ | 2,000 |
Total Securities sold, not yet purchased, at fair value |  | $ | — |  |  | $ | 2,000 |  |  | $ | — |  |  | $ | 2,000 |
|  | As of December 31, 2023 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Cash and securities segregated for regulatory purposes |  |  |  |  |  |  |  |  |  |  |  |
U.S. government securities |  | $ | 115,515,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 115,515,000 |
Securities owned, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government securities |  | $ | 17,636,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 17,636,000 |
Certificates of deposit |  |  | — |  |  |  | 114,000 |  |  |  | — |  |  |  | 114,000 |
Corporate bonds |  |  | — |  |  |  | 3,000 |  |  |  | — |  |  |  | 3,000 |
Options |  |  | 2,000 |  |  |  | — |  |  |  | — |  |  |  | 2,000 |
Equity securities |  |  | 146,000 |  |  |  | 137,000 |  |  |  | — |  |  |  | 283,000 |
Total Securities owned, at fair value |  | $ | 17,784,000 |  |  | $ | 254,000 |  |  | $ | — |  |  | $ | 18,038,000 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities sold, not yet purchased, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  | $ | 2,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,000 |
Total Securities sold, not yet purchased, at fair value |  | $ | 2,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,000 |
The Company had U.S. government securities, certificates of deposit, municipal securities, and corporate bonds with the market values and maturity dates for the periods indicated below:
|  | As of June 30, 2024 |
Maturing in 2024 |  | $ | 92,483,000 |
Maturing in 2025 |  |  | 3,958,000 |
Maturing in 2026 |  |  | 5,010,000 |
Maturing in 2027 |  |  | 58,000 |
Maturing after 2027 |  |  | 332,000 |
Accrued interest |  |  | 53,000 |
Total Market value |  | $ | 101,894,000 |
|  |  | As of December 31, 2023 |
Maturing in 2023 |  | $ | 30,000,000 |
Maturing in 2024 |  |  | 98,931,000 |
Maturing in 2025 |  |  | 3,965,000 |
Maturing after 2025 |  |  | 115,000 |
Accrued interest |  |  | 257,000 |
Total Market value |  | $ | 133,268,000 |
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 due to their short-term nature. The tables below represents financial instruments in which the ending balances as of June 30, 2024 and December 31, 2023 are not carried at fair value in the statements of financial condition:
|  | As of June 30, 2024 |
|  | Carrying Value |  |  | Fair Value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial assets, not measured at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 5,200,000 |  |  | $ | 5,200,000 |  |  | $ | 5,200,000 |  |  | $ | — |  |  | $ | — |
Cash – segregated for regulatory purposes |  |  | 128,081,000 |  |  |  | 128,081,000 |  |  |  | 128,081,000 |  |  |  | — |  |  |  | — |
Securities borrowed |  |  | 253,781,000 |  |  |  | 253,781,000 |  |  |  | — |  |  |  | 253,781,000 |  |  |  | — |
Receivables from customers |  |  | 74,875,000 |  |  |  | 74,875,000 |  |  |  | — |  |  |  | 74,875,000 |  |  |  | — |
Receivables from non-customers |  |  | 455,000 |  |  |  | 455,000 |  |  |  | — |  |  |  | 455,000 |  |  |  | — |
Receivables from broker-dealers and clearing organizations |  |  | 8,720,000 |  |  |  | 8,720,000 |  |  |  | — |  |  |  | 8,720,000 |  |  |  | — |
Other receivables |  |  | 4,097,000 |  |  |  | 4,097,000 |  |  |  | — |  |  |  | 4,097,000 |  |  |  | — |
Deposits with broker-dealers and clearing organizations |  |  | 7,279,000 |  |  |  | 7,279,000 |  |  |  | — |  |  |  | 7,279,000 |  |  |  | — |
Total financial assets, not measured at fair value |  | $ | 482,488,000 |  |  | $ | 482,488,000 |  |  | $ | 133,281,000 |  |  | $ | 349,207,000 |  |  | $ | — |
Financial liabilities, not measured at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities loaned |  | $ | 272,515,000 |  |  | $ | 272,515,000 |  |  | $ | — |  |  | $ | 272,515,000 |  |  | $ | — |
Payables to customers |  |  | 233,873,000 |  |  |  | 233,873,000 |  |  |  | — |  |  |  | 233,873,000 |  |  |  | — |
Payables to non-customers |  |  | 186,000 |  |  |  | 186,000 |  |  |  | — |  |  |  | 186,000 |  |  |  | — |
Drafts payable |  |  | 1,527,000 |  |  |  | 1,527,000 |  |  |  | — |  |  |  | 1,527,000 |  |  |  | — |
Payables to broker-dealers and clearing organizations |  |  | 5,015,000 |  |  |  | 5,015,000 |  |  |  | — |  |  |  | 5,015,000 |  |  |  | — |
Deferred contract incentive |  |  | 821,000 |  |  |  | 821,000 |  |  |  | — |  |  |  | 821,000 |  |  |  | — |
Long-term debt |  |  | 4,270,000 |  |  |  | 4,270,000 |  |  |  | — |  |  |  | 4,270,000 |  |  |  | — |
Contract termination liability |  |  | 3,493,000 |  |  |  | 3,493,000 |  |  |  | — |  |  |  | 3,493,000 |  |  |  | — |
Total financial liabilities, not measured at fair value |  | $ | 521,700,000 |  |  | $ | 521,700,000 |  |  | $ | — |  |  | $ | 521,700,000 |  |  | $ | — |
|  | As of December 31, 2023
|  | Carrying Value |  |  | Fair Value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial assets, not measured at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 5,735,000 |  |  | $ | 5,735,000 |  |  | $ | 5,735,000 |  |  | $ | — |  |  | $ | — |
Cash – segregated for regulatory purposes |  |  | 158,802,000 |  |  |  | 158,802,000 |  |  |  | 158,802,000 |  |  |  | — |  |  |  | — |
Securities borrowed |  |  | 394,709,000 |  |  |  | 394,709,000 |  |  |  | — |  |  |  | 394,709,000 |  |  |  | — |
Receivables from customers |  |  | 72,823,000 |  |  |  | 72,823,000 |  |  |  | — |  |  |  | 72,823,000 |  |  |  | — |
Receivables from non-customers |  |  | 241,000 |  |  |  | 241,000 |  |  |  | — |  |  |  | 241,000 |  |  |  | — |
Receivables from broker-dealers and clearing organizations |  |  | 3,863,000 |  |  |  | 3,863,000 |  |  |  | — |  |  |  | 3,863,000 |  |  |  | — |
Other receivables |  |  | 2,424,000 |  |  |  | 2,424,000 |  |  |  | — |  |  |  | 2,424,000 |  |  |  | — |
Deposits with broker-dealers and clearing organizations |  |  | 7,885,000 |  |  |  | 7,885,000 |  |  |  | — |  |  |  | 7,885,000 |  |  |  | — |
Total financial assets, not measured at fair value |  | $ | 646,482,000 |  |  | $ | 646,482,000 |  |  | $ | 164,537,000 |  |  | $ | 481,945,000 |  |  | $ | — |
Financial liabilities, not measured at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities loaned |  | $ | 419,433,000 |  |  | $ | 419,433,000 |  |  | $ | — |  |  | $ | 419,433,000 |  |  | $ | — |
Payables to customers |  |  | 289,777,000 |  |  |  | 289,777,000 |  |  |  | — |  |  |  | 289,777,000 |  |  |  | — |
Payables to non-customers |  |  | 713,000 |  |  |  | 713,000 |  |  |  | — |  |  |  | 713,000 |  |  |  | — |
Drafts payable |  |  | 1,726,000 |  |  |  | 1,726,000 |  |  |  | — |  |  |  | 1,726,000 |  |  |  | — |
Payables to broker-dealers and clearing organizations |  |  | 481,000 |  |  |  | 481,000 |  |  |  | — |  |  |  | 481,000 |  |  |  | — |
Deferred contract incentive |  |  | 1,246,000 |  |  |  | 1,246,000 |  |  |  | — |  |  |  | 1,246,000 |  |  |  | — |
Long-term debt |  |  | 4,313,000 |  |  |  | 4,313,000 |  |  |  | — |  |  |  | 4,313,000 |  |  |  | — |
Contract termination liability |  |  | 4,462,000 |  |  |  | 4,462,000 |  |  |  | — |  |  |  | 4,462,000 |  |  |  | — |
Total financial liabilities, not measured at fair value |  | $ | 722,151,000 |  |  | $ | 722,151,000 |  |  | $ | — |  |  | $ | 722,151,000 |  |  | $ | — |

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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