SIEBERT FINANCIAL CORP Fair Value Disclosure
8. Fair Value Measurements
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
The tables below present, by level within the fair value hierarchy, financial assets and liabilities measured at fair value on a recurring basis for the periods indicated. As required by Topic 820, financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the respective fair value measurement.
| As of December 31, 2024 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets | ||||||||||||||||
| Cash and securities segregated for regulatory purposes | ||||||||||||||||
| U.S. government securities | $ | 68,758,000 | $ | $ | $ | 68,758,000 | ||||||||||
| Securities owned, at fair value | ||||||||||||||||
| U.S. government securities | $ | 20,086,000 | $ | $ | $ | 20,086,000 | ||||||||||
| Certificates of deposit | 112,000 | 112,000 | ||||||||||||||
| Corporate bonds | 2,000 | 2,000 | ||||||||||||||
| Options | 58,000 | 58,000 | ||||||||||||||
| Equity securities | 1,055,000 | 72,000 | 1,127,000 | |||||||||||||
| Total Securities owned, at fair value | $ | 21,199,000 | $ | 186,000 | $ | $ | 21,385,000 | |||||||||
| Liabilities | ||||||||||||||||
| Securities sold, not yet purchased, at fair value | ||||||||||||||||
| Equity securities | $ | 1,000 | $ | $ | $ | 1,000 | ||||||||||
| Options | 25,000 | 25,000 | ||||||||||||||
| Total Securities sold, not yet purchased, at fair value | $ | 26,000 | $ | $ | $ | 26,000 | ||||||||||
| As of December 31, 2023 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets | ||||||||||||||||
| Cash and securities segregated for regulatory purposes | ||||||||||||||||
| U.S. government securities | $ | 115,515,000 | $ | $ | $ | 115,515,000 | ||||||||||
| Securities owned, at fair value | ||||||||||||||||
| U.S. government securities | $ | 17,636,000 | $ | $ | $ | 17,636,000 | ||||||||||
| Certificates of deposit | 114,000 | 114,000 | ||||||||||||||
| Corporate bonds | 3,000 | 3,000 | ||||||||||||||
| Options | 2,000 | 2,000 | ||||||||||||||
| Equity securities | 146,000 | 137,000 | 283,000 | |||||||||||||
| Total Securities owned, at fair value | $ | 17,784,000 | $ | 254,000 | $ | $ | 18,038,000 | |||||||||
| Liabilities | ||||||||||||||||
| Securities sold, not yet purchased, at fair value | ||||||||||||||||
| Equity securities | $ | 2,000 | $ | $ | $ | 2,000 | ||||||||||
| Total Securities sold, not yet purchased, at fair value | $ | 2,000 | $ | $ | $ | 2,000 | ||||||||||
The Company had U.S. government securities with the market values and maturity dates for the periods indicated below:
| As of December 31, 2024 | ||||
| Maturing in 2025 | $ | 80,739,000 | ||
| Maturing in 2026 | 8,019,000 | |||
| Accrued interest | 86,000 | |||
| Total Market value | $ | 88,844,000 | ||
| As of December 31, 2023 | ||||
| Maturing in 2023 | $ | 30,000,000 | ||
| Maturing in 2024 | 98,931,000 | |||
| Maturing in 2025 | 3,965,000 | |||
| Accrued interest | 255,000 | |||
| Total Market value | $ | 133,151,000 | ||
Financial Assets Measured at Fair Value on a Non-Recurring Basis
As a result of the 2023 transaction discussed in Note 3 – Transactions with Tigress, the Company recognized an impairment charge for its investment in Tigress of approximately $185,000 during the year ended December 31, 2023, which is included in “Impairment of investments” in the consolidated statements of operations. The fair value of the Company’s investment in Tigress was determined using observed current market prices of Tigress’ membership interests that were below the Company’s carrying value of its equity investment in Tigress. Following the transaction, the Company had no remaining interest in Tigress as of December 31, 2024.
Financial Assets and Liabilities Not Carried at Fair Value
Financial assets and liabilities not measured at fair value are recorded at carrying value, which approximates fair value either due to their short-term nature, or in the case of long-term assets or liabilities, management has determined the difference in the carrying value and fair value is immaterial. The tables below represents financial instruments in which the ending balances as of December 31, 2024 and 2023 are not carried at fair value in the statements of financial condition:
| As of December 31, 2024 | ||||||||||||||||||||
| Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
| Financial assets, not measured at fair value | ||||||||||||||||||||
| Cash and cash equivalents | $ | 32,629,000 | $ | 32,629,000 | $ | 32,629,000 | $ | $ | ||||||||||||
| Cash – segregated for regulatory purposes | 135,829,000 | 135,829,000 | 135,829,000 | |||||||||||||||||
| Securities borrowed | 139,040,000 | 139,040,000 | 139,040,000 | |||||||||||||||||
| Receivables from customers | 84,367,000 | 84,367,000 | 84,367,000 | |||||||||||||||||
| Receivables from non-customers | 607,000 | 607,000 | 607,000 | |||||||||||||||||
| Receivables from broker-dealers and clearing organizations | 3,920,000 | 3,920,000 | 3,920,000 | |||||||||||||||||
| Other receivables | 2,744,000 | 2,744,000 | 2,744,000 | |||||||||||||||||
| Deposits with broker-dealers and clearing organizations | 4,227,000 | 4,227,000 | 4,227,000 | |||||||||||||||||
| Total financial assets, not measured at fair value | $ | 403,363,000 | $ | 403,363,000 | $ | 168,458,000 | $ | 234,905,000 | $ | |||||||||||
| Financial liabilities, not measured at fair value | ||||||||||||||||||||
| Securities loaned | $ | 184,962,000 | $ | 184,962,000 | $ | $ | 184,962,000 | $ | ||||||||||||
| Payables to customers | 227,129,000 | 227,129,000 | 227,129,000 | |||||||||||||||||
| Payables to non-customers | 3,297,000 | 3,297,000 | 3,297,000 | |||||||||||||||||
| Drafts payable | 1,331,000 | 1,331,000 | 1,331,000 | |||||||||||||||||
| Payables to broker-dealers and clearing organizations | 444,000 | 444,000 | 444,000 | |||||||||||||||||
| Deferred contract incentive | 496,000 | 496,000 | 496,000 | |||||||||||||||||
| Long-term debt | 4,228,000 | 4,228,000 | 4,228,000 | |||||||||||||||||
| Contract termination liability | 2,567,000 | 2,567,000 | 2,567,000 | |||||||||||||||||
| Total financial liabilities, not measured at fair value | $ | 424,454,000 | $ | 424,454,000 | $ | $ | 424,454,000 | $ | ||||||||||||
| As of December 31, 2023 | ||||||||||||||||||||
| Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
| Financial assets, not measured at fair value | ||||||||||||||||||||
| Cash and cash equivalents | $ | 5,735,000 | $ | 5,735,000 | $ | 5,735,000 | $ | $ | ||||||||||||
| Cash – segregated for regulatory purposes | 158,802,000 | 158,802,000 | 158,802,000 | |||||||||||||||||
| Securities borrowed | 394,709,000 | 394,709,000 | 394,709,000 | |||||||||||||||||
| Receivables from customers | 72,823,000 | 72,823,000 | 72,823,000 | |||||||||||||||||
| Receivables from non-customers | 241,000 | 241,000 | 241,000 | |||||||||||||||||
| Receivables from broker-dealers and clearing organizations | 3,863,000 | 3,863,000 | 3,863,000 | |||||||||||||||||
| Other receivables | 2,424,000 | 2,424,000 | 2,424,000 | |||||||||||||||||
| Deposits with broker-dealers and clearing organizations | 7,885,000 | 7,885,000 | 7,885,000 | |||||||||||||||||
| Total financial assets, not measured at fair value | $ | 646,482,000 | $ | 646,482,000 | $ | 164,537,000 | $ | 481,945,000 | $ | |||||||||||
| Financial liabilities, not measured at fair value | ||||||||||||||||||||
| Securities loaned | $ | 419,433,000 | $ | 419,433,000 | $ | $ | 419,433,000 | $ | ||||||||||||
| Payables to customers | 289,777,000 | 289,777,000 | 289,777,000 | |||||||||||||||||
| Payables to non-customers | 713,000 | 713,000 | 713,000 | |||||||||||||||||
| Drafts payable | 1,726,000 | 1,726,000 | 1,726,000 | |||||||||||||||||
| Payables to broker-dealers and clearing organizations | 481,000 | 481,000 | 481,000 | |||||||||||||||||
| Deferred contract incentive | 1,246,000 | 1,246,000 | 1,246,000 | |||||||||||||||||
| Long-term debt | 4,313,000 | 4,313,000 | 4,313,000 | |||||||||||||||||
| Contract termination liability | 4,462,000 | 4,462,000 | 4,462,000 | |||||||||||||||||
| Total financial liabilities, not measured at fair value | $ | 722,151,000 | $ | 722,151,000 | $ | $ | 722,151,000 | $ | ||||||||||||
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About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.