Company: COHN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033482
Chunk: 125

Company: Cohen & Co Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 125
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 our European PriDe Funds. 

In some cases, CCM will receive financial instruments in lieu of cash for its advisory transactions.  In these cases, we record advisory revenue equal to the fair value of the instruments received.  Subsequent to receipt, the instruments are carried at fair value as a component of other investments, at fair value in our consolidated balance sheets. Any change in the fair value of these instruments subsequent to recording the new issue revenue will be recorded as principal transactions gain or loss in the consolidated statement of operations.  Further, it should be noted that the financial instruments we receive in these cases are often either (i) common stock investments that are restricted for resale for some period of time, (ii) convertible or non-convertible debt investments that are not publicly traded, (iii) equity investments in special purpose entities that are not publicly traded, or (iv) unrestricted common stock investments in public companies that do not have significant trading volume.  Therefore, it may take us a significant period of time to liquidate these investments.  We may suffer significant principal transactions loss prior to final liquidation of these financial instruments, which will impact the results of our Capital Markets segment.  

The following table shows the cash and non-cash portion of new issue and advisory revenue:

      Three Months Ended September 30, 

      2025 

      2024 

      Change 

      Cash 
      
     $
     46,646

     $
     12,732

     $
     33,914

      Non-Cash 

     181,362

     9,727

     171,635

      Total 
      
     $
     228,008

     $
     22,459

     $
     205,549

When CCM receives common stock in exchange for services, the non-cash revenue recorded equals the fair value of the stock received as of the date the underlying transaction closed.  CCM's clients include many newly public companies as well as early stage and high growth companies.  These companies often have highly volatile stock prices.  Accordingly, CCM may experience significant gains or losses subsequent to the receipt of the stock until the stock is finally liquidated.  Such gains or losses are shown are recorded as a component of principal transactions and are shown separately in the table immediately below in the section: Capital Markets principal transactions.  Unless the financial instruments received have been fully liquidated, C