Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Sep. 30, 2019

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present the carrying values and estimated fair values at September 30, 2019 and 2018 of financial assets and liabilities, excluding financial instruments that are carried at fair value on a recurring basis, and information is provided on their classification within the fair value hierarchy. Such instruments are carried at amounts that approximate fair value due to their short-term nature and generally negligible credit risk.



	September 30, 2019
Assets	Carrying Value		Level 1		Level 2		Total Estimated Fair Value
Cash	$	30,443,000	$	30,443,000	$	—	$	30,443,000
Cash deposits with clearing organizations	436,000		436,000		—		436,000
Receivables from broker-dealers and clearing organizations	3,490,000		—		3,490,000		3,490,000
Forgivable loans receivable	1,834,000		—		1,834,000		1,834,000
Other Receivables, Net	5,672,000		—		5,672,000		5,672,000
	$	41,875,000	$	30,879,000	$	10,996,000	$	41,875,000

Liabilities
Accrued commissions and payroll payable	18,590,000		—		18,590,000		18,590,000
Accounts payable and accrued expenses (1)	8,643,000		—		8,643,000		8,643,000
	$	27,233,000	$	—	$	27,233,000	$	27,233,000


(1)	Excludes contingent consideration liabilities of $1,620,000.



	September 30, 2018
Assets	Carrying Value		Level 1		Level 2		Total Estimated Fair Value
Cash	$	27,920,000	$	27,920,000	$	—	$	27,920,000
Cash deposits with clearing organizations	336,000		336,000		—		336,000
Receivables from broker-dealers and clearing organizations	3,967,000		—		3,967,000		3,967,000
Forgivable loans receivable	1,567,000		—		1,567,000		1,567,000
Other Receivables, Net	4,265,000		—		4,265,000		4,265,000
	$	38,055,000	$	28,256,000	$	9,799,000	$	38,055,000

Liabilities
Accrued commissions and payroll payable	12,862,000		—		12,862,000		12,862,000
Accounts payable and accrued expenses (1)	7,275,000		—		7,275,000		7,275,000
	$	20,137,000	$	—	$	20,137,000	$	20,137,000


(1)	Excludes contingent consideration liabilities of $744,000.

The following tables present the financial assets and liabilities measured at fair value on a recurring basis at September 30, 2019 and 2018.



	September 30, 2019
Assets	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
Securities owned
Corporate stocks	$	6,282,000	$	6,282,000	$	—	$	—	$	6,282,000
Municipal bonds	20,000		20,000		—		—		20,000
Restricted stock	725,000		—		725,000		—		725,000
Warrants	5,454,000		—		1,529,000		3,925,000		5,454,000
	$	12,481,000	$	6,302,000	$	2,254,000	$	3,925,000	$	12,481,000

Liabilities
Contingent consideration	1,620,000		—		—		1,620,000		1,620,000
	$	1,620,000	$	—	$	—	$	1,620,000	$	1,620,000



	September 30, 2018
Assets	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
Securities owned
Corporate stocks	1,084,000		1,084,000		—		—		1,084,000
Restricted stock	670,000				670,000				670,000
Warrants	6,032,000		—		2,753,000		3,279,000		6,032,000
	$	7,786,000	$	1,084,000	$	3,423,000	$	3,279,000	$	7,786,000

Liabilities
Contingent consideration	744,000		—		—		744,000		744,000
	$	744,000	$	—	$	—	$	744,000	$	744,000

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

Changes in Level 3 assets measured at fair value on a recurring basis for the year ended September 30, 2019:



	Beginning Balance as of September 30, 2018		Net Realized Gain or (losses)		Net Change in Unrealized Appreciation (Depreciation)			Purchases		Sales		Transfer into Level 3 (a)		Transfer Out of Level 3 (b)			Ending Balance as of September 30, 2019
Assets
Warrants	$	3,279,000	$	—	$	(73,000	)	$	—	$	—	$	883,000	$	(164,000	)	$	3,925,000

(a) The Company received warrants as part of investment banking transaction.

Fair Value Measurement Inputs and Valuation Techniques

The table below presents information on the valuation techniques, significant unobservable inputs and their ranges for our financial assets measured at fair value on a recurring basis with a significant Level 3 balance as of September 30, 2019.



Financial Instruments Owned	Fair Value	Valuation Technique	Significant Unobservable Input(s)	Input/Range
Warrants	$3,925,000	Market Approach	Discount for lack of marketability	21% - 44%
Warrants	$3,925,000	Market Approach	Volatility	55% - 120%