Company: COHN
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001437749-25-007158
Chunk: 1402

Company: Cohen & Co Inc.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1A
Chunk 1402
---
 also carried at fair value. Fair value represents the amount the Company would need to pay to settle the SFA obligation at any reporting period date. If the SFA allows the Company multiple methods of settling the obligation, the Company will choose the most advantageous one to value the derivative obligation. In performing this calculation, only settlement methods contractually available to the Company at the reporting date will be considered (i.e., ones available at some future date will not be considered). For instance, if the Company  may terminate the SFA early by either returning common shares or making a cash payment based on the Reset Price, the liability will be valued at the lower of: (i) the fair value of the common shares and (ii) the cash amount based on the Reset Price. 

     ●  The Company does not recognize any Maturity Consideration as revenue until it is earned under the contract, either by meeting the hold period requirement or due to a breach of obligation by the SFA Counterparty that enables the Company to terminate the SFA early.   

     ●  In cases where the Company earns Maturity Consideration and the amount it is owed exceeds the fair value of the interest it owns that is available to offset, the Company will consider the probability of payment of the remaining Maturity Consideration based on the credit quality of the SFA Counterparty and general market conditions.  If the Company determines that the collection of the remaining Maturity Consideration owed is not probable, the Company will not record the unpaid portion.   

        F-
       34

   The following table shows the carrying value of the assets and liabilities of SFA transactions as of the reporting period dates.
    
   SHARE FORWARD ARRANGEMENTS
   (Dollars in Thousands)

       December 31, 2024    December 31, 2023  
 Equity securities  $470  $26,079 
 Equity derivatives   -   1,447 
 Notes receivable   -   6,278 
 Share forward liabilities   -   (24,645)
 Net fair value of share forward arrangements  $470  $9,159 

   The Company entered into SFAs primarily through its consolidated subsidiary, Vellar GP.  See note 31 for discussion of sale of the Company's interest in Vellar GP subsequent to year end. Therefore, the Company does not expect to have significant SFA activity in the future.  

        F