Company: IWSH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001214659-25-016507
Chunk: 13

Company: Wright Investors Service Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 13
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In November 2024, the FASB issued ASU 2024-03,
Income Statement Reporting-Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement
Expenses. The standard update improves the disclosures about a public business entity’s expenses by requiring more detailed information
about the types of expenses (including compensation and benefits and other operating expenses) included within income statement expense
captions. The guidance will be effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods
beginning after December 15, 2027. Early adoption is permitted. The standard will be applied on a prospective basis, with retrospective
application permitted. The Company is currently evaluating the impact of adoption of the standard on its financial statement disclosures.

5.Investment valuation

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

Level
2Inputs other than quoted market prices that are observable, either directly or indirectly, and reasonably available. Observable inputs
reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data obtained
from sources independent of the Company.

Level
3Unobservable inputs. Unobservable inputs reflect the assumptions that the Company develops based on available information about what
market participants would use in valuing the asset or liability.

An
asset or liability's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value
measurement. Availability of observable inputs can vary and is affected by a variety of factors. The Company uses judgment in determining
fair value of assets and liabilities and Level 3 assets and liabilities involve greater judgment than Level 1 or Level 2 assets or liabilities.

As of September
30, 2025 and December 31, 2024, the Company held investments in equity securities which consist of mutual funds of $1,478,000 and
$914,000, respectively. Mutual funds are valued at the closing price reported by the fund sponsor from