Company: COHN
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001437749-25-007158
Chunk: 3051

Company: Cohen & Co Inc.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7
Chunk 3051
---
   In accordance with ASC 820, the Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into a three-level valuation hierarchy. The valuation hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement). The three levels of the valuation hierarchy under ASC 820 are described below.
   ﻿ 
    Level 1  Financial assets and liabilities with values that are based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. 

   ﻿ 
    Level 2  Financial assets and liabilities with values that are based on one or more of the following: 

   ﻿ 
     1.  Quoted prices for similar assets or liabilities in active markets; 

     2.  Quoted prices for identical or similar assets or liabilities in non-active markets; 

   ﻿ 
     3.  Pricing models with inputs that are derived, other than quoted prices, and are observable for substantially the full term of the asset or liability; or 

     4.  Pricing models with inputs that are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability. 

   ﻿ 
    Level 3  Financial assets and liabilities with values that are based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability. 

   ﻿ 
   In certain cases, the inputs used to measure fair value  may fall into different levels of the valuation hierarchy. In such cases, the level in the valuation hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.
   ﻿ 
   Both observable and unobservable inputs  may be used to determine the fair value of positions that the Company has classified within the level 3 category. As a result, the unrealized gains and losses for assets and liabilities within the level 3 category that  may be presented in the tables below  may include changes in fair value