Cohen & Co Inc.

Previous wording

A portion of our revenue is generated from new issue and advisory engagements. The fees charged and volume of these engagements are sensitive to the overall business environment. We provide origination services in Europe through our subsidiary CCFESA, and new issue and advisory services in the U.S. through our subsidiary JVB. A division of JVB, CCM is our full-service boutique investment bank, which focuses on M&A, capital markets, and SPAC advisory. Currently, our primary source of new issue and advisory revenue is from investment banking and advisory services through CCM, as well as from originating assets for our U.S. and European insurance asset management business including our U.S. Insurance JV and CREO JV.

Current wording

A portion of our revenue is generated from new issue and advisory engagements. The fees charged and volume of these engagements are sensitive to the overall business environment. We provide origination services in Europe through our subsidiary CCFESA, and new issue and advisory services in the U.S. through our subsidiary JVB. A division of JVB, CCM is our full-service boutique investment bank, which focuses on M&A, underwriting, capital markets and SPAC advisory. Currently, our primary source of new issue and advisory revenue is from investment banking and advisory services through CCM, as well as from originating assets for our U.S. and European insurance asset management business including our U.S. Insurance JV and CREO JV.

Previous wording

A portion of our revenue is generated from management fees. Our ability to charge management fees and the amount of those fees is dependent upon the underlying investment performance and stability of the Investment Vehicles. If these types of investments do not provide attractive returns to investors, the demand for such instruments will likely fall, thereby reducing our opportunity to earn new management fees or maintain existing management fees. As of March 31, 2024, 43% of our existing AUM were in CDOs. The creation of CDOs has depended upon a vibrant securitization market. Since 2008, volumes within the securitization market have dropped significantly and have not fully recovered since that time. We have not completed a new securitization since 2008. The remaining portion of our AUM is from a diversified mix of other Investment Vehicles most of which were more recently formed.

Current wording

A portion of our revenue is generated from management fees. Our ability to charge management fees and the amount of those fees is dependent upon the underlying investment performance and stability of the Investment Vehicles. If these types of investments do not provide attractive returns to investors, the demand for such instruments will likely fall, thereby reducing our opportunity to earn new management fees or maintain existing management fees. As of June 30, 2024, 42% of our existing AUM were in CDOs. The creation of CDOs has depended upon a vibrant securitization market. Since 2008, volumes within the securitization market have dropped significantly and have not fully recovered since that time. We have not completed a new securitization since 2008. The remaining portion of our AUM is from a diversified mix of other Investment Vehicles most of which were more recently formed.

Previous wording

A portion of our revenues is generated from our principal investing activities. Therefore, our revenues are impacted by the overall market supply and demand of these investments as well as the individual performance of each investment. Our principal investments are included within other investments, at fair value; other investments sold, not yet purchased; and investments in equity method affiliates in our consolidated balance sheets. More recently, a significant component of our principal investment revenue has come from SPAC related equity investments, primarily in entities that have been the result of sponsored SPAC business combinations, SFA transactions, or related party sponsored SPAC business combinations. In addition, in recent quarters, we have received significant portions of new issue and advisory revenue in the form of financial instruments rather than cash. Typically, these financial instruments are carried at fair value and included as a component of our principal investment segment. Performance of the resulting principal investments can be materially impacted by overall performance of the equity markets. See notes 7 and 9 to our consolidated financial statements included in Item 1 of this Quarterly Report on Form 10-Q.

Current wording

A portion of our revenues is generated from our principal investing activities. Therefore, our revenues are impacted by the overall market supply and demand of these investments as well as the individual performance of each investment. Our principal investments are included within other investments, at fair value; other investments sold, not yet purchased; and investments in equity method affiliates in our consolidated balance sheets. More recently, a significant component of our principal investment revenue has come from SPAC related equity investments, primarily in entities that have been the result of sponsored SPAC business combinations, SFA transactions, or related party sponsored SPAC business combinations. In addition, in recent quarters, we have received significant portions of new issue and advisory revenue in the form of financial instruments rather than cash. Typically, these financial instruments are carried at fair value and included as a component of our Principal Investing segment. Performance of the resulting principal investments can be materially impacted by overall performance of the equity markets. See notes 7 and 9 to our consolidated financial statements included in Item 1 of this Quarterly Report on Form 10-Q.

Previous wording

Equity prices of SPACs and post business combination SPACs declined significantly during 2023 and the first three months of 2024. We are exposed to public equity prices of SPACs and post business combination SPACs both through our other investments, at fair value and investments in equity method affiliates. As a result, we recorded significant principal transaction losses and equity method losses during 2023 and the first three months of 2024 in certain SPAC related investments. Continued declines in the equity prices of these companies will result in further losses for us.

Current wording

Equity prices of SPACs and post business combination SPACs declined significantly during 2023 and the first six months of 2024. We are exposed to public equity prices of SPACs and post business combination SPACs both through our other investments, at fair value and investments in equity method affiliates. As a result, we recorded significant principal transaction losses and equity method losses during 2023 and the first six months of 2024 in certain SPAC related investments. Continued declines in the equity prices of these companies will result in further losses for us.

Previous wording

Prior to March 31, 2023, Vellar GP had an investment in the SPAC Fund, the potential to earn incentive fees, and did not consolidate the SPAC Fund. We own an interest in and consolidate Vellar GP. Effective April 1, 2023, all of the investors in the SPAC Fund, other than Vellar GP, redeemed all of their interests in the SPAC Fund. Therefore, effective April 1, 2023, Vellar GP became the sole owner of the SPAC Fund and began consolidating it. Because we consolidate Vellar GP, we began consolidating the SPAC Fund effective April 1, 2023 as well. The following table represent the assets and liabilities of the SPAC Fund upon consolidation by us.

Current wording

Prior to March 31, 2023, Vellar GP had an investment in the SPAC Fund, the potential to earn incentive fees, and did not consolidate the SPAC Fund. We own an interest in and consolidate Vellar GP. Effective April 1, 2023, all of the investors in the SPAC Fund, other than Vellar GP, redeemed all of their interests in the SPAC Fund. Therefore, effective April 1, 2023, Vellar GP became the sole owner of the SPAC Fund and began consolidating it. Because we consolidate Vellar GP, we began consolidating the SPAC Fund effective April 1, 2023 as well. The following table represents the assets and liabilities of the SPAC Fund upon consolidation by us:

Previous wording

Asset management fees from CDOs decreased mainly due to paydowns of principal. Asset management fees from other increased primarily due to the recognition in 2024 of deferred performance fees related to certain PriDe Funds.

Current wording

Asset management fees from CDOs decreased mainly due to paydowns of principal. Asset management fees from other increased primarily due to the recognition in 2024 of deferred performance fees related to certain PriDe Funds and due to the portfolio servicing fee on the notional amount of loans owned by the CREO JV.

Previous wording

CCM, a division of JVB, is our full-service boutique investment bank, which focuses on M&A, capital markets, and SPAC advisory services. In addition, we generate new issue revenue by originating new assets for the U.S. Insurance JV, CREO JV, and our PriDe Funds in Europe.

Current wording

CCM, a division of JVB, is our full-service boutique investment bank, which focuses on M&A, underwriting, capital markets and SPAC advisory services. In addition, we generate new issue revenue by originating new assets for the U.S. Insurance JV, CREO JV, and our PriDe Funds in Europe.

Previous wording

Other income / (loss) is comprised of an ongoing revenue share arrangement as well as other miscellaneous operating income items. The revenue share arrangement noted in the table above entitles us to a percentage of revenue earned by IIFC. The IIFC revenue share arrangement expires at the earlier of (i) the dissolution of IIFC or (ii) when we have earned a cumulative $20,000 in revenue share payments. To date, we have earned $6,161. In any particular year, the IIFC revenue share earned by us cannot exceed $2,000.

Current wording

Other income / (loss) is comprised of an ongoing revenue share arrangement as well as other miscellaneous operating income items. The revenue share arrangement noted in the table above entitles us to a percentage of revenue earned by IIFC. The IIFC revenue share arrangement expires at the earlier of (i) the dissolution of IIFC or (ii) when we have earned a cumulative $20,000 in revenue share payments. To date, we have earned $7,081. In any particular year, the IIFC revenue share earned by us cannot exceed $2,000.

Previous wording

Cash compensation and benefits in the table above was primarily comprised of salary, incentive compensation, severance, employer portion of payroll taxes, and benefits. The change was primarily the result of changes in incentive compensation. Our total headcount decreased from 121 at March 31, 2023 to 116 at March 31, 2024. Equity-based compensation remained relatively unchanged.

Current wording

Cash compensation and benefits in the table above was primarily comprised of salary, incentive compensation, severance, employer portion of payroll taxes, and benefits. The change was primarily the result of changes in incentive compensation. Our total headcount increased from 117 at June 30, 2023 to 121 at June 30, 2024. Equity-based compensation remained relatively unchanged.

Previous wording

Professional fee and other operating expenses increased by$1,249, or 57%, to$3,449 for the three months ended March 31, 2024, as compared to$2,200 for the three months ended March 31, 2023. This increase was comprised of an increase in professional fees of $649 and an increase in other operating expense of $600.

Current wording

Professional fee and other operating expenses increased by $2,020, or 51%, to $5,982 for thesix months ended June 30, 2024, as compared to $3,962 for thesix months ended June 30, 2023. This increase was comprised of an increase in professional fees of $1,436 and an increase in other operating expense of $584.

Previous wording

SPAC sponsor entities and other includes both indirect and direct investments in SPAC sponsor entities. Several of these SPAC sponsor entities are invested in SPACs that have completed their business combinations. Those SPAC sponsor entities hold restricted and unrestricted equity interests in the public post-merger entities. We account for our investments in SPAC sponsor entities under the equity method of accounting. If a SPAC sponsor entity distributes SPAC shares to us, we account for those SPAC shares as a component of other investments, at fair value. The following table shows the equity method income / (loss) included in SPAC sponsor entities and other above broken out by the ultimate public company investee. For several of the investments described below, we also had an investment in the same company accounted for at fair value as a component of other investments, at fair value during the periods presented. See discussion of principal transactions above.

Current wording

If a SPAC sponsor entity distributes SPAC shares to us, we account for those SPAC shares as a component of other investments, at fair value. For several of the equity method investments described below, we also had an investment in the same company accounted for at fair value as a component of other investments, at fair value during the periods presented. Changes in fair value of those investments are included as a component of principal transactions and other income. The following table shows the equity method income / (loss) included in SPAC sponsor entities and other above broken out by the ultimate public company investee. See discussion of principal transactions above. See note 11 to our consolidated financial statements included in Item 1 of this Quarterly Report on Form 10-Q.

Previous wording

Cohen & Company Inc. consolidates the Operating LLC but only owns a minority economic interest in the Operating LLC. For the three months ended March 31, 2024, Cohen & Company Inc. owned 28.1% of the economic interests of the Operating LLC (on average) and was allocated the same percentage of income/(loss) generated by the Operating LLC. To the extent Cohen & Company Inc. incurs tax obligations on this amount, the related tax expense is recognized in these consolidated financial statements. The remaining 71.9% that was allocated to the non-controlling members of the Operating LLC is subject to taxation on such members' tax returns.

Current wording

Cohen & Company Inc. consolidates the Operating LLC but only owns a minority economic interest in the Operating LLC. For the six months ended June 30, 2024, Cohen & Company Inc. owned 28.3% of the economic interests of the Operating LLC (on average) and was allocated the same percentage of income/(loss) generated by the Operating LLC. To the extent Cohen & Company Inc. incurs tax obligations on this amount, the related tax expense is recognized in these consolidated financial statements. The remaining 71.7% that was allocated to the non-controlling members of the Operating LLC is subject to taxation on such members' tax returns.

Previous wording

Other SPAC Sponsor Investor represents an entity that we consolidate, but do not wholly own, that invests in other SPAC sponsor entities. The Vellar GP is consolidated by us, but we do not wholly own it.

Current wording

Other SPAC Sponsor Investor represents an entity that we consolidate, but do not wholly own, that invests in other SPAC sponsor entities. Vellar GP is consolidated by us, but we do not wholly own this entity.

Previous wording

Net income / (loss) attributable to the convertible non-controlling interest for the three months ended March 31, 2024 and 2023 was comprised of the non-controlling interest related to member interests in the Operating LLC other than interests held by us therein for the relevant periods. These interests are convertible into Common Stock. See note 21 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023.

Current wording

Net income / (loss) attributable to the convertible non-controlling interest for the six months ended June 30, 2024 and 2023 was comprised of the non-controlling interest related to member interests in the Operating LLC other than interests held by us therein for the relevant periods. These interests are convertible into Common Stock. See note 21 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023.

Previous wording

Net trading revenue increased by $1,638, or 20%, to $9,848 for the three months ended March 31, 2024, as compared to $8,210 for the three months ended March 31, 2023. The following table shows the detail by trading group.

Current wording

Net trading revenue increased by $1,382, or 19%, to $8,798 for the three months ended June 30, 2024, as compared to $7,416 for the three months ended June 30, 2023. The following table shows the detail by trading group:

Previous wording

Asset management fees increased by $692, or 34%, to $2,717 for the three months ended March 31, 2024, as compared to $2,025 for the three months ended March 31, 2023, as discussed in more detail below. The following table provides a more detailed comparison of the two periods.

Current wording

Asset management fees increased by $473, or 29%, to $2,078 for the three months ended June 30, 2024, as compared to $1,605 for the three months ended June 30, 2023, as discussed in more detail below. The following table provides a more detailed comparison of the two periods:

Previous wording

New issue and advisory revenue increased by $23,488 to $24,388 for the three months ended March 31, 2024, as compared to $900 for the three months ended March 31, 2023. The following table summarizes new issue and advisory revenue by business line.

Current wording

New issue and advisory revenue increased by $5,105 to $6,500 for the three months ended June 30, 2024, as compared to $1,395 for the three months ended June 30, 2023. The following table summarizes new issue and advisory revenue by business line.

Previous wording

In some cases, CCM will receive financial instruments in lieu of cash for its advisory transactions. In these cases, we record advisory revenue equal to the fair value of the instruments received. Subsequent to receipt, the instruments are carried at fair value as a component of other investments, at fair value in our consolidated balance sheets. Any change in the fair value of these instruments subsequent to recording the new issue revenue will be recorded as principal transactions gain or loss in the consolidated statement of operations. Further, it should be noted that the financial instruments we receive in these cases are often either (i) common stock investments that are restricted for resale for some period of time; (ii) convertible or non-convertible debt investments that are not publicly traded; (iii) equity investments in special purpose entities that are not publicly traded; or (iv) unrestricted common stock investments in public companies but the company does not have significant trading volume. Therefore, it may take us a significant period of time to liquidate these investments. We may suffer significant principal transactions loss prior to final liquidation of these financial instruments which will impact the results of our Principal Investing segment.

Current wording

In some cases, CCM will receive financial instruments in lieu of cash for its advisory transactions. In these cases, we record advisory revenue equal to the fair value of the instruments received. Subsequent to receipt, the instruments are carried at fair value as a component of other investments, at fair value in our consolidated balance sheets. Any change in the fair value of these instruments subsequent to recording the new issue revenue will be recorded as principal transactions gain or loss in the consolidated statement of operations. Further, it should be noted that the financial instruments we receive in these cases are often either (i) common stock investments that are restricted for resale for some period of time; (ii) convertible or non-convertible debt investments that are not publicly traded; (iii) equity investments in special purpose entities that are not publicly traded; or (iv) unrestricted common stock investments in public companies but the companies do not have significant trading volume. Therefore, it may take us a significant period of time to liquidate these investments. We may suffer significant principal transactions loss prior to final liquidation of these financial instruments, which will impact the results of our Principal Investing segment.

Previous wording

Revenues increased by $9,740, or 110%, to $18,564 for the three months ended March 31, 2024, as compared to $8,824 for the three months ended March 31, 2023. As discussed in more detail below, the change was comprised of (i) an increase of $1,638 in net trading revenue, (ii) an increase of $692 in asset management revenue, (iii) an increase of $23,488 in new issue and advisory revenue, and (iv) a decrease of $16,078 in principal transactions and other income.

Current wording

Principal Transactions and Other Income (Loss)

Previous wording

Principal transactions and other income (loss) decreased by $16,078 to ($18,389) for the three months ended March 31, 2024, as compared to ($2,311) for the three months ended March 31, 2023. The following table summarizes principal transactions and other income by category.

Current wording

Principal transactions and other income (loss) decreased by $18,734 to ($6,578) for the three months ended June 30, 2024, as compared to $12,156 for the three months ended June 30, 2023. The following table summarizes principal transactions and other income by category:

Previous wording

These items represent our direct and indirect investments in certain public companies. These investments may be in the form of unrestricted common stock, restricted common stock, equity derivatives, convertible notes, non-convertible notes, fair value receivables, as well as equity interest in SPVs that have investments in these public companies. The name and ticker symbol of each public company in which we have a direct or indirect investment is listed in the table above. The amounts shown represent the change in the fair value of our investment in each time period noted in the table. All of the interests in the public companies listed above with the exception of OPTX, SELX, and ZPTA were acquired as non-cash compensation related to new issue and advisory engagements. When we received these investments, we recorded new issue and advisory revenue for the fair value of those instruments at that time.

Current wording

These items represent our direct and indirect investments in certain public companies. These investments may be in the form of unrestricted common stock, restricted common stock, equity derivatives, convertible notes, non-convertible notes, fair value receivables, as well as equity interest in SPVs that have investments in these public companies. The name and ticker symbol of each public company in which we have a direct or indirect investment is listed in the table above. The amounts shown represent the change in the fair value of our investment in each time period noted in the table. Most of the interests in the public companies listed above were acquired as non-cash compensation related to new issue and advisory engagements. When we received these investments, we recorded new issue and advisory revenue for the fair value of those instruments at that time.

Previous wording

Compensation and benefits increased by $4,302, or 41%, to $14,839 for the three months ended March 31, 2024, as compared to $10,537 for the three months ended March 31, 2023.

Current wording

Compensation and benefits increased by $698, or 7%, to $10,699 for the three months ended June 30, 2024, as compared to $10,001 for the three months ended June 30, 2023.

Previous wording

Business development, occupancy, and equipment increased by$140, or 11%, to$1,441 for the three months ended March 31, 2024, as compared to$1,301 for the three months ended March 31, 2023. This increase was comprised of an increase in occupancy and equipment of $84, and an increase in business development of $56.

Current wording

Business development, occupancy, and equipment increased by$273, or 21%, to$1,591 for the three months ended June 30, 2024, as compared to$1,318 for the three months ended June 30, 2023. This increase was comprised of an increase in occupancy and equipment of $54, and an increase in business development of $219.

Previous wording

Subscriptions, clearing, and execution decreased by$39, or 2%, to$2,086 for the three months ended March 31, 2024, as compared to$2,125 for the three months ended March 31, 2023. The decrease was due to a decrease in clearing and execution of $104, partially offset by an increase in subscriptions and dues of $65.

Current wording

Subscriptions, clearing, and execution decreased by$126, or 5%, to$2,217 for the three months ended June 30, 2024, as compared to$2,343 for the three months ended June 30, 2023. The decrease was due to a decrease in clearing and execution of $143, partially offset by an increase in subscriptions and dues of $17.

Previous wording

Operating expenses increased by $5,632, or 35%, to $21,939 for the three months ended March 31, 2024, as compared to $16,307 for the three months ended March 31, 2023. As discussed in more detail below, the change was comprised of (i) an increase of $4,302 in compensation and benefits; (ii) an increase of $140 in business development, occupancy, and equipment; (iii) a decrease of $39 in subscriptions, clearing, and execution; (iv) an increase of $1,249 in professional fee and other operating; and (v) a decrease of $20 in depreciation and amortization.

Current wording

Professional Fee and Other Operating Expenses

Previous wording

Depreciation and amortization decreased by $20, or 14%, to $124 for the three months ended March 31, 2024, as compared to $144 for the three months ended March 31, 2023.

Current wording

Depreciation and amortization decreased by $24, or 16%, to $125 for the three months ended June 30, 2024, as compared to $149 for the three months ended June 30, 2023.

Previous wording

Income / (loss) from equity method affiliates increased by $29,440 to $29,045 for the three months ended March 31, 2024, as compared to ($395) for the three months ended March 31, 2023. See note 11 to our consolidated financial statements included in Item 1 of this Quarterly Report on Form 10-Q.

Current wording

Income / (loss) from equity method affiliates decreased by $5,485 to ($5,996) for the three months ended June 30, 2024, as compared to ($511) for the three months ended June 30, 2023. See note 11 to our consolidated financial statements included in Item 1 of this Quarterly Report on Form 10-Q.

Previous wording

On July 29, 2021, our board of directors reinstated our quarterly dividend declaring a cash dividend of $0.25 per share. We have paid a quarterly cash dividend of $0.25 regularly since that date. In addition to our routine quarterly distribution, on March 8, 2022, our board of directors declared a special cash dividend of $0.75 per share. On May 2, 2024, the Company's board of directors declared a quarterly cash dividend of $0.25 per share on its Common Stock. The dividends are payable on June 5, 2024 to stockholders of record on May 20, 2024.

Current wording

On July 29, 2021, our board of directors reinstated our quarterly dividend declaring a cash dividend of $0.25 per share. We have paid a quarterly cash dividend of $0.25 regularly since that date. In addition to our routine quarterly distribution, on March 8, 2022, our board of directors declared a special cash dividend of $0.75 per share. On August 5, 2024, the Company's board of directors declared a quarterly cash dividend of $0.25 per share on its Common Stock. The dividends are payable on September 5, 2024 to stockholders of record as of August 22, 2024.

Previous wording

During the three months ended March 31, 2024 and 2023, we had no other financing transactions in excess of $1,000. This excludes non-cash transactions. See note 23 to our consolidated financial statements included in Item 1 of this Quarterly Report on Form 10-Q.

Current wording

During the six months ended June 30, 2024 and 2023, we had no other financing transactions in excess of $1,000. This excludes non-cash transactions. See note 23 to our consolidated financial statements included in Item 1 of this Quarterly Report on Form 10-Q.

Previous wording

As of March 31, 2024 and December 31, 2023, we maintained cash and cash equivalents of $ 11,829 and $ 10,650, respectively. We generated cash from or used cash for the activities described below.

Current wording

As of June 30, 2024 and December 31, 2023, we maintained cash and cash equivalents of $ 9,575 and $ 10,650, respectively. We generated cash from or used cash for the activities described below.

Previous wording

As of March 31, 2024, our cash and cash equivalents were $ 11,829, representing an increase of $ 1,179 from December 31, 2023. The increase was attributable to cash provided by operating activities of $ 5,137, cash used in investing activities of $ 2,856, cash used in financing activities of $ 999, and a decrease in cash caused by the change in exchange rates of $ 103.

Current wording

As of June 30, 2024, our cash and cash equivalents were $ 9,575, representing a decrease of $ 1,075 from December 31, 2023. The decrease was attributable to cash provided by operating activities of $ 930, cash provided by investing activities of $ 6,451, cash used in financing activities of $ 8,340, and a decrease in cash caused by the change in exchange rates of $ 116.

Previous wording

The cash provided by operating activities of $ 5,137 was comprised of (a) net cash outflows of $ 5,362 related to working capital fluctuations; (b) net cash inflows of $ 3,923 from trading activities comprised of our investments-trading, trading securities sold, not yet purchased, receivables under resale agreements, securities sold under agreements to repurchase, and receivables and payables from brokers, dealers, and clearing agencies, as well as the changes in unrealized gains and losses on the investments-trading and trading securities sold, not yet purchased; and (c) net cash inflows from other earnings items of $ 6,576 (which represents net income or loss adjusted for the following non-cash operating items: other income / (expense), non-cash revenue, realized and unrealized gains and losses and accretion of income on other investments, income/(loss) from equity method affiliates, equity based compensation, depreciation and amortization, deferred taxes, and amortization of discount on debt).

Current wording

The cash provided by operating activities of $ 930 was comprised of (a) net cash outflows of $ 7,121 related to working capital fluctuations; (b) net cash inflows of $ 2,780 from trading activities comprised of our investments-trading, trading securities sold, not yet purchased, receivables under resale agreements, securities sold under agreements to repurchase, and receivables and payables from brokers, dealers, and clearing agencies, as well as the changes in unrealized gains and losses on the investments-trading and trading securities sold, not yet purchased; and (c) net cash inflows from other earnings items of $ 5,271 (which represents net income or loss adjusted for the following non-cash operating items: other income / (expense), non-cash revenue, realized and unrealized gains and losses and accretion of income on other investments, income/(loss) from equity method affiliates, equity based compensation, depreciation and amortization, deferred taxes, and amortization of discount on debt).

Previous wording

The cash used in investing activities of $ 2,856 was comprised of (a) $214 of sales of other investments sold, not yet purchased, at fair value; (b) $22,383 of sales of other investments, at fair value; (c) $5 in distributions received from equity method affiliates; partially offset by (d) $25,146 of cash used to purchase other investments, at fair value; (e) $213 of cash used to purchase other investments sold, not yet purchased, at fair value; and (f) $99 in cash used to purchase furniture, equipment, and leasehold improvements.

Current wording

The cash provided by investing activities of $ 6,451 was comprised of (a) $41,544 of sales of other investments sold, not yet purchased, at fair value; (b) $214 of sales of other investments, at fair value; (c) $857 in distributions received from equity method affiliates; partially offset by (d) $34,289 of cash used to purchase other investments, at fair value; (e) $1,267 of cash used to purchase other investments sold, not yet purchased, at fair value;(f) $134 of cash used to invest in equity method affiliates; and (g) $474 in cash used to purchase furniture, equipment, and leasehold improvements.

Previous wording

The cash used in financing activities of $ 999 was comprised of (a) $185 in cash used to net settle equity awards; (b) $245 in cash used to pay dividends; and (c) $569 in convertible non-controlling interest distributions.

Current wording

The cash used in financing activities of $ 8,340 was comprised of (a) $189 in cash used to net settle equity awards; (b) $1,057 in cash used to pay dividends; (c) $3,022 in convertible non-controlling interest distributions; (d) $659 in redemptions of convertible non-controlling interests (e) $3,567 in non-convertible non-controlling interest distributions; partially offset by (f) $154 in proceeds from issuance of Common Stock.

Previous wording

As of March 31, 2023, our cash and cash equivalents were $3,641, representing a decrease of $25,460 from December 31, 2022. The decrease was attributable to cash used in operating activities of $27,709, cash provided by investing activities of $2,714, cash used in financing activities of $556, and an increase in cash caused by the change in exchange rates of $91.

Current wording

As of June 30, 2023, our cash and cash equivalents were $12,166, representing a decrease of $16,935 from December 31, 2022. The decrease was attributable to cash used in operating activities of $35,667, cash provided by investing activities of $22,851, cash used in financing activities of $4,220, and an increase in cash caused by the change in exchange rates of $101.

Previous wording

The cash used in operating activities of $27,709 was comprised of (a) net cash outflows of $7,271 related to working capital fluctuations; (b) net cash outflows of $14,656 from trading activities comprised of our investments-trading, trading securities sold, not yet purchased, receivables under resale agreements, securities sold under agreements to repurchase, and receivables and payables from brokers, dealers, and clearing agencies, as well as the changes in unrealized gains and losses on the investments-trading and trading securities sold, but not yet purchased; and (c) net cash outflows from other earnings items of $5,782 (which represents net income or loss adjusted for the following non-cash operating items: other income / (expense), realized and unrealized gains and losses and accretion of income on other investments, income from equity method affiliates, equity based compensation, depreciation and amortization, deferred taxes, and amortization of discount on debt).

Current wording

The cash used in operating activities of $35,667 was comprised of (a) net cash outflows of $87,177 related to working capital fluctuations; (b) net cash inflows of $61,522 from trading activities comprised of our investments-trading, trading securities sold, not yet purchased, receivables under resale agreements, securities sold under agreements to repurchase, and receivables and payables from brokers, dealers, and clearing agencies, as well as the changes in unrealized gains and losses on the investments-trading and trading securities sold, not yet purchased; and (c) net cash outflows from other earnings items of $10,012 (which represents net income or loss adjusted for the following non-cash operating items: other income / (expense), non cash revenue, realized and unrealized gains and losses and accretion of income on other investments, income/(loss) from equity method affiliates, equity based compensation, depreciation and amortization, deferred taxes, and amortization of discount on debt).

Previous wording

The cash provided by investing activities of $2,714 was comprised of (a) $3,908 in sales and returns of principal from other investments, at fair value; (b) $1 in distributions from equity method affiliates; partially offset by (c) $363 in cash used to purchase other investments, at fair value; (d) $736 in cash used to invest in equity method affiliates; and (e) $96 of cash used to purchase furniture and equipment.

Current wording

The cash provided by investing activities of $22,851 was comprised of (a) $25,885 of sales of other investments sold, not yet purchased, at fair value; (b) $57,140 of sales of other investments, at fair value; (c) $3 in distributions received from equity method affiliates; partially offset by (d) $58,723 of cash used to purchase other investments, at fair value; (e) $112 of cash used to purchase other investments sold, not yet purchased, at fair value; (f) $1,124 of cash used to invest in equity method affiliates; and (g) $218 in cash used to purchase furniture, equipment, and leasehold improvements.

Previous wording

The cash used in financing activities of $ 556 was comprised of (a) $164 in cash used to net settle equity awards; (b) $215 in cash used to pay dividends; (c) $215 in convertible non-controlling interest distributions; partially offset by (d) $38 in investments received from non-controlling interests.

Current wording

The cash used in financing activities of $4,220 was comprised of (a) $175 in cash used to net settle equity awards; (b) $984 in cash used to pay dividends; (c) $2,266 in convertible non-controlling interest distributions; (d) $833 in redemption of convertible non-controlling interests; partially offset by (e) $38 in investments received from non-controlling interests. We also drew and repaid $15,000 on the Byline Bank line of credit.

Previous wording

We operate with more than the minimum regulatory capital requirement in our licensed broker-dealers and at March 31, 2024, total net capital, or the equivalent as defined by the relevant statutory regulations, in our licensed broker-dealers totaled $54,598. See note 19 to our consolidated financial statements included in Item 1 in this Quarterly Report on Form 10-Q. In addition, our licensed broker-dealers are generally subject to capital withdrawal notification and restrictions.

Current wording

We operate with more than the minimum regulatory capital requirement in our licensed broker-dealers and at June 30, 2024, total net capital, or the equivalent as defined by the relevant statutory regulations, in our licensed broker-dealers totaled $54,304. See note 19 to our consolidated financial statements included in Item 1 in this Quarterly Report on Form 10-Q. In addition, our licensed broker-dealers are generally subject to capital withdrawal notification and restrictions.

Previous wording

As of March 31, 2024, our total equity on a consolidated basis was $113,323 and the total equity of JVB was $91,249. Therefore, only $22,074 of equity exists outside of JVB. However, it should be noted that our non-redeemable NCI represents equity that is included in our consolidated financial statements but is not available to the Operating LLC to fund operations outside of those specific consolidated but not wholly owned subsidiaries. As of March 31, 2024, our non-convertible non-controlling interest balance was $25,876. Therefore, a deficit of available equity exists outside of JVB of $3,802.

Current wording

As of June 30, 2024, our total equity on a consolidated basis was $95,618 and the total equity of JVB was $84,548. Therefore, only $11,070 of equity existed outside of JVB. However, it should be noted that our non-convertible non-controlling interest represents equity that is included in our consolidated financial statements but is not available to the Operating LLC to fund operations outside of those specific consolidated but not wholly owned subsidiaries. As of June 30, 2024, our non-convertible non-controlling interest balance was $17,103. Therefore, a deficit of available equity existed outside of JVB of $6,033.