Company: BCG
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001410578-25-000663
Chunk: 48

Company: Binah Capital Group, Inc.
Filing Date: 2025-04-08
Form: 424B3
Chunk 48
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 related to the sales of mutual funds and variable annuities held by clients of the Company’s advisors are generally based on a percentage of the current market value of clients’ investment holdings in trail-eligible assets, and are recognized over the time the client owns the investment or holds the contract and is generally based on a fixed rate applied, generally twenty-five to fifty basis points (25-50 bps) of the current market value of the clients’ holdings. Trailing commissions are generally received monthly or quarterly. The ongoing revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control including market volatility and the client’s investment hold period and the Company does not believe that it can overcome such constraints until the market value of the fund and the investor activities are known. The revenues will not be recognized until it is probable that a significant reversal will not occur. The Company is principal for the commission revenue, as it is responsible for the execution of the clients’ purchases and sales and maintains relationships with the product sponsors. Advisors assist the Company in performing it obligations. Accordingly, total commission revenue is reported on a gross basis. See Note 5 — Revenues From Contracts with Customers within the notes to the audited consolidated financial statements for the years ended December 31, 2024, and 2023 for further details regarding our commission revenue by product category. The following table sets forth the components of our commission revenue for years December 31, 2024 and 2023 (in thousands):

| ​                        
 ​                        | ​ 
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 For the years ended December 31, 
 ​                                |       ​ 
    2024 | ​ | ​ 
 ​ |       ​ 
    2023 | ​ 
 ​ |       ​ 
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       ​ | ​        
 ​        
 $ Change |     ​ 
     ​ 
     ​ | ​        
 % Change |
|:-------------------------|:--|:---------------------------------|--------:|:--|:--|--------:|:--|--------:|:---------|------:|:---------|
| Sales-based              |   | $                                |  62,827 |   | $ |  74,525 |   | -11,698 |          | -15.7 | %        |
| Trailing                 | ​ |                                  | 101,564 | ​ |   |  85,334 |   |  16,230 |          |  19.0