Note 22 - Segment and Geographic Information

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

22. SEGMENT AND GEOGRAPHIC INFORMATION 

The Company operates within three business segments: Capital Markets, Asset Management, and Principal Investing. See note 1.  The Company’s business segment information was prepared using the following methodologies and generally represents the information that is relied upon by management in its decision- making processes:  (a) revenues and expenses directly associated with each business segment are included in determining net income / (loss) by segment and (b) indirect expenses (such as general and administrative expenses including executive and indirect overhead costs) not directly associated with specific business segments are not allocated to the business segments’ statements of operations.  Accordingly, the Company presents segment information consistent with internal management reporting. See note (1) in the table below for more detail on unallocated items. The following tables present the financial information for the Company’s segments for the periods indicated.

SEGMENT INFORMATION

Statement of Operations Information

Three Months Ended March 31, 2024

	Capital			Asset		Principal			Segment			Unallocated
	Markets			Management		Investing			Total			(1)			Total
Net trading	$	9,848		$	-	$	-		$	9,848		$	-		$	9,848
Asset management		-			2,717		-			2,717			-			2,717
New issue and advisory		24,388			-		-			24,388			-			24,388
Principal transactions and other income		-			548		(18,937	)		(18,389	)		-			(18,389	)
Total revenues		34,236			3,265		(18,937	)		18,564			-			18,564
Compensation		12,344			1,679		493			14,516			323			14,839
Other Operating Expense		4,151			670		271			5,092			2,008			7,100
Total operating expenses		16,495			2,349		764			19,608			2,331			21,939
Operating income (loss)		17,741			916		(19,701	)		(1,044	)		(2,331	)		(3,375	)
Interest income (expense)		(20	)		-		-			(20	)		(1,646	)		(1,666	)
Income (loss) from equity method affiliates		-			-		29,045			29,045			-			29,045
Income (loss) before income taxes		17,721			916		9,344			27,981			(3,977	)		24,004
Income tax expense (benefit)		-			-		-			-			498			498
Net income (loss)		17,721			916		9,344			27,981			(4,475	)		23,506
Less: Net income (loss) attributable to the non-convertible non-controlling interest of the Operating LLC		-			-		16,270			16,270			-			16,270
Enterprise net income (loss)		17,721			916		(6,926	)		11,711			(4,475	)		7,236
Less: Net income (loss) attributable to the convertible non-controlling interest of Cohen & Company Inc.		-			-		-			-			5,213			5,213
Net income (loss) attributable to Cohen & Company Inc.	$	17,721		$	916	$	(6,926	)	$	11,711		$	(9,688	)	$	2,023
Other statement of operations data
Depreciation and amortization (included in total operating expense)	$	-		$	1	$	-		$	1		$	123		$	124

SEGMENT INFORMATION

Statement of Operations Information

Three Months Ended March 31, 2023

	Capital			Asset		Principal			Segment			Unallocated
	Markets			Management		Investing			Total			(1)			Total
Net trading	$	8,210		$	-	$	-		$	8,210		$	-		$	8,210
Asset management		-			2,025		-			2,025			-			2,025
New issue and advisory		900			-		-			900			-			900
Principal transactions and other income		-			240		(2,551	)		(2,311	)		-			(2,311	)
Total revenues		9,110			2,265		(2,551	)		8,824			-			8,824
Compensation		6,946			1,431		235			8,612			1,925			10,537
Other Operating Expense		3,649			568		218			4,435			1,335			5,770
Total operating expenses		10,595			1,999		453			13,047			3,260			16,307
Operating income (loss)		(1,485	)		266		(3,004	)		(4,223	)		(3,260	)		(7,483	)
Interest (expense) income		(65	)		-		-			(65	)		(1,527	)		(1,592	)
Income (loss) from equity method affiliates		-			-		(395	)		(395	)		-			(395	)
Income (loss) before income taxes		(1,550	)		266		(3,399	)		(4,683	)		(4,787	)		(9,470	)
Income tax expense (benefit)		-			-		-			-			584			584
Net income (loss)		(1,550	)		266		(3,399	)		(4,683	)		(5,371	)		(10,054	)
Less: Net income (loss) attributable to the non-convertible non-controlling interest of the Operating LLC		-			114		(17	)		97			-			97
Enterprise net income (loss)		(1,550	)		152		(3,382	)		(4,780	)		(5,371	)		(10,151	)
Less: Net income (loss) attributable to the convertible non-controlling interest of Cohen & Company Inc.		-			-		-			-			(7,514	)		(7,514	)
Net income (loss) attributable to Cohen & Company Inc.	$	(1,550	)	$	152	$	(3,382	)	$	(4,780	)	$	2,143		$	(2,637	)
Other statement of operations data
Depreciation and amortization (included in total operating expense)	$	-		$	2	$	-		$	2		$	142		$	144

BALANCE SHEET DATA

As of March 31, 2024

(Dollars in Thousands)

	Capital		Asset		Principal		Segment		Unallocated
	Markets		Management		Investing		Total		(1)		Total
Total Assets	$	935,308	$	4,230	$	109,438	$	1,048,976	$	12,349	$	1,061,325
Included within total assets:
Investments in equity method affiliates	$	-	$	-	$	43,281	$	43,281	$	-	$	43,281
Goodwill (2)	$	54	$	55	$	-	$	109	$	-	$	109
Intangible assets (2)	$	166	$	-	$	-	$	166	$	-	$	166

BALANCE SHEET DATA

December 31, 2023

(Dollars in Thousands)

	Capital		Asset		Principal		Segment		Unallocated
	Markets		Management		Investing		Total		(1)		Total
Total Assets	$	665,597	$	5,633	$	86,946	$	758,176	$	14,585	$	772,761
Included within total assets:
Investments in equity method affiliates	$	-	$	-	$	14,241	$	14,241	$	-	$	14,241
Goodwill (2)	$	54	$	55	$	-	$	109	$	-	$	109
Intangible assets (2)	$	166	$	-	$	-	$	166	$	-	$	166

(1)	Unallocated assets primarily include: (i) amounts due from related parties; (ii) furniture and equipment, net; and (iii) other assets that are not considered necessary for an understanding of business segment assets. Such amounts are excluded in business segment reporting to the chief operating decision maker.
(2)	Goodwill and intangible assets are allocated to the Capital Markets and Asset Management business segments as indicated in the tables above.

Geographic Information

The Company conducts its business activities through offices in the following locations: (1) United States and (2) Europe.  Total revenues by geographic area are summarized as follows.

GEOGRAPHIC DATA

(Dollars in Thousands)

	Three Months Ended March 31,
	2024		2023
Total Revenues:
United States	$	16,743	$	7,819
Europe		1,821		1,005
Total	$	18,564	$	8,824

Long-lived assets attributable to an individual country, other than the United States, are not material.