Company: IWSH
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001214659-25-004885
Chunk: 98

Company: Wright Investors Service Holdings, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 98
---
 avoidance of speculation.

The Company may be classified
as an inadvertent investment company if the Company acquires investment securities in excess of 40% of its total assets (exclusive of
government securities, and cash and certain cash equivalents). As of December 31, 2024, the Company is not considered an inadvertent investment
company.

    2.
    Summary of significant accounting policies

Principles of consolidation.

The consolidated financial statements include
the accounts of the Company and its wholly-owned subsidiaries, all of which are inactive. All significant intercompany accounts and transactions
have been eliminated in consolidation.

Use of estimates

The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America (“GAAP”), requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results
could differ from these estimates.

Cash and cash equivalents

Cash equivalents represent short-term, highly liquid investments, which
are readily convertible to cash and have maturities of three months or less at time of purchase.  Cash equivalents, which are
carried at fair value or amortized cost, as applicable, consist of holdings in U.S. Treasury Bills and a money market fund. Cash and cash
equivalents amounted to approximately $1,440,000 and $125,000 at December 31, 2024 and 2023, respectively.

 17 

WRIGHT INVESTORS’ SERVICE HOLDINGS, INC.

Notes to Consolidated Financial Statements

December 31, 2024

Investment Valuation

The Company’s investments
in marketable securities consist of investments in debt securities which are U.S. Treasury bills, and equity securities which are mutual
funds. The Company carries its investments at fair value. Fair value is an estimate of the exit price, representing the amount that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (i.e., the exit price
at the measurement date). Fair value measurements are not adjusted for transaction costs. A fair value hierarchy provides for prioritizing
inputs to valuation techniques used to measure fair value into three levels:

    Level 1
    Unadjusted quoted prices in active markets for identical assets or liabilities.

    Level 2
    Inputs other than quoted market prices that are observable, either directly or indirectly