Company: COHN
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001437749-25-007158
Chunk: 3235

Company: Cohen & Co Inc.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7A
Chunk 3235
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 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.   

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   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.  

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   11. COLLATERALIZED SECURITIES TRANSACTIONS 
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   Gestation Repo 
   ﻿ 
   Gestation repo involves entering into repo and reverse repo transactions where the underlying collateral security represents a pool of newly issued mortgage loans.  The borrowers (the reverse repo counterparties) are generally mortgage originators.  The lenders (the repo counterparties) are a diverse group of the