Company: COHN
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001437749-25-024506
Chunk: 286

Company: Cohen & Co Inc.
Filing Date: 2025-08-04
Form: 10-Q
Item: Item 8
Chunk 286
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     $
     (663
     )
      
     $
     (5,985
     )
      
     $
     5,322

       80

Income Tax Expense / (Benefit) 

﻿

Income tax expense / (benefit) increased by $976 to $771 for the three months ended June 30, 2025, as compared to ($205) for the three months ended June 30, 2024. 

      For the Three Months Ended June 30, 

      2025 

      2024 

      Change 

      Current 
      
     $
     373

     $
     (214
     )
      
     $
     (587
     )

      Deferred 

     398

     9

     (389
     )

      Total 
      
     $
     771

     $
     (205
     )
      
     $
     (976
     )

Our provision for income taxes fluctuates due to several factors mostly attributable to our legal structure, which are summarized as follows.

Cohen & Company Inc. is treated as a “C” corporation for United States federal income tax purposes. A U.S. C corporation is subject to a federal tax rate of 21%.  Our effective tax rate is significantly different than this rate for the following reasons.

1. Cohen & Company Inc. consolidates the Operating LLC but only owns a minority economic interest in the Operating LLC.  For the three months ended June 30, 2025, Cohen & Company Inc. owned 29.5% of the economic interests of the Operating LLC (on average) and was allocated the same percentage of income/(loss) generated by the Operating LLC.  To the extent Cohen & Company Inc. incurs tax obligations on this amount, the related tax expense is recognized in our consolidated financial statements.  The remaining 70.5% of income/(loss) generated by the Operating LLC was allocated to the non-controlling members of the Operating LLC and is subject to taxation on such members' individual tax returns.  

2. The Operating LLC itself consolidates certain pass-through entities.  Therefore, the income/(loss) of these entities is included in our consolidated results, but no tax expense/(benefit) related to the unowned portions of these entities is included in our consolidated results. 

3. There