Wright Investors' Service (IWSH) 10-Q 15 May 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 06, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Information [Line Items]
Entity Registrant Name	WRIGHT INVESTORS’ SERVICE HOLDINGS, INC.
Entity Central Index Key	0001279715
Entity File Number	000-50587
Entity Tax Identification Number	13-4005439
Entity Incorporation, State or Country Code	DE
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Shell Company	true
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Contact Personnel [Line Items]
Entity Address, Address Line One	118 North Bedford Road
Entity Address, Address Line Two	Ste. 100
Entity Address, City or Town	Mount Kisco
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10549
Entity Phone Fax Numbers [Line Items]
City Area Code	(914)
Local Phone Number	242-5700
Entity Listings [Line Items]
Trading Symbol	IWSH
Security Exchange Name	NONE
Title of 12(g) Security	Common Stock, $0.01 par value
Entity Common Stock, Shares Outstanding		20,620,711

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 2,489	$ 125
Investments	550	3,144
Prepaid expenses and other current assets	65	97
Total current assets	3,104	3,366
Other assets	8	8
Total assets	3,112	3,374
Current liabilities
Accounts payable and accrued expenses	80	83
Total current liabilities	80	83
Total liabilities	80	83
Stockholders’ equity
Preferred stock, par value $0.01 per share, authorized 10,000,000 shares; none issued
Common stock, par value $0.01 per share, authorized 30,000,000 shares; Issued 21,628,680 as of March 31, 2024 and December 31, 2023; Outstanding 20,620,711 as of March 31, 2024 and December 31, 2023.	216	216
Additional paid-in capital	34,392	34,392
Accumulated deficit	(29,829)	(29,610)
Accumulated other comprehensive income		40
Treasury stock, at cost (1,007,969 shares at March 31, 2024 and December 31, 2023)	(1,747)	(1,747)
Total stockholders' equity	3,032	3,291
Total liabilities and stockholders’ equity	$ 3,112	$ 3,374

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued
Common stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares Issued	21,628,680	21,628,680
Common stock, shares outstanding	20,620,711	20,620,711
Treasury stock, shares	1,007,969	1,007,969

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Expenses
Compensation and benefits	$ 113	$ 115
Other operating	172	205
Total operating expenses	285	320
Loss from operations	(285)	(320)
Interest and other income, net	66	6
Loss from operations	(219)	(314)
Net loss	$ (219)	$ (314)
Basic weighted average common shares outstanding (in Shares)	20,620,711	20,620,711
Basic loss per share (in Dollars per share)	$ (0.01)	$ (0.02)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Diluted weighted average common shares outstanding	20,620,711	20,620,711
Diluted loss per share	$ (0.01)	$ (0.02)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (219)	$ (314)
Unrealized (loss) gain on available for sale securities	(40)	35
Comprehensive loss	$ (259)	$ (279)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common stock (Issued)	Additional paid -in capital	Accumulated deficit	Accumulated other comprehensive income	Treasury stock, at cost	Total
Balance at Dec. 31, 2022	$ 213	$ 34,395	$ (28,604)	$ 32	$ (1,747)	$ 4,289
Balance (in Shares) at Dec. 31, 2022	21,343,680
Net loss			(314)			(314)
Stock based compensation expense to directors	$ 3	(3)
Stock based compensation expense to directors (in Shares)	285,000
Other comprehensive income				35		35
Balance at Mar. 31, 2023	$ 216	34,392	(28,918)	67	(1,747)	4,010
Balance (in Shares) at Mar. 31, 2023	21,628,680
Balance at Dec. 31, 2023	$ 216	34,392	(29,610)	40	(1,747)	3,291
Balance (in Shares) at Dec. 31, 2023	21,628,680
Net loss			(219)			(219)
Other comprehensive income				(40)		(40)
Balance at Mar. 31, 2024	$ 216	$ 34,392	$ (29,829)		$ (1,747)	$ 3,032
Balance (in Shares) at Mar. 31, 2024	21,628,680

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Cash Flows [Abstract]
Net loss	$ (219)	$ (314)
Adjustments to reconcile net loss to net cash used in operating activities:
Realized gain on investments	(56)
Prepaid expenses and other current assets	32	32
Accounts payable and accrued expenses	(3)	1
Net cash used in operating activities	(246)	(281)
Cash flows from investing activities
Proceeds from redemptions and sale of investments	3,160	294
Purchase of investments	(550)
Net cash provided by investing activities	2,610	294
Net increase in cash and cash equivalents	2,364	13
Cash and cash equivalents at the beginning of the period	125	90
Cash and cash equivalents at the end of the period	2,489	103
Supplemental disclosures of cash flow information
Unrealized (loss) gain on available for sale securities	$ (40)	$ 35

Basis of presentation and descr

Basis of presentation and description of activities	3 Months Ended
	Mar. 31, 2024
Basis of presentation and description of activities [Abstract]
Basis of presentation and description of activities	1. Basis of presentation and description of activities Basis of presentation The accompanying interim financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The information and note disclosures normally included in complete financial statements have been condensed or omitted pursuant to such rules and regulations. The Condensed Consolidated Balance Sheet as of December 31, 2023 has been derived from audited financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2023 as presented in our Annual Report on Form 10-K. In the opinion of management, this interim information includes all material adjustments, which are of a normal and recurring nature, necessary for a fair presentation. The results for the 2024 interim period are not necessarily indicative of results to be expected for the entire year. Description of activities Wright Investors’ Service Holdings, Inc. (the “Company”) has nominal operations and nominal assets aside from its cash and cash equivalents and investments in U.S. Treasury Bills, and is therefore considered a shell company, as defined in U.S. securities laws and regulations. The Company is not engaged in the business of investing, reinvesting, or trading in securities, and it does not hold itself out as being engaged in those activities. The Company intends to evaluate and explore all available strategic options. The Company will continue to work to maximize stockholder value. Such strategic options may include acquisition of an investment advisory business, acquisition of a financial services business, creating partnerships or joint ventures for those or other businesses and investing in other businesses that provide attractive opportunities for growth. The directors will also consider alternatives for distributing some or all of the Company’s cash and cash equivalents . Until such time as a decision is made as to how the liquid assets of the Company are so deployed, the Company intends to invest its liquid assets in high-grade, short- term investments (such as cash and cash equivalents and Investment in U.S. Treasury Bills and mutual funds) consistent with the preservation of principal, maintenance of liquidity and avoidance of speculation. The Company may be classified as an inadvertent investment company if the Company acquires investment securities in excess of 40% of the Company’s total assets (exclusive of government securities). As of March 31, 2024, the Company is not considered an inadvertent investment company.

Per Share Data

Per Share Data	3 Months Ended
	Mar. 31, 2024
Per Share Data [Abstract]
Per share data	2. Per share data Loss per share for the three months ended March 31, 2024 and 2023 is calculated based on 20,620,711 weighted average outstanding shares of common stock.

Investment Valuation

Investment Valuation	3 Months Ended
	Mar. 31, 2024
Investment valuation [Abstract]
Investment valuation	3. 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 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Inputs 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 3 Unobservable 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 March 31, 2024, the Company held investments in U.S. government debt securities of $2,422,000 which are included in cash and cash equivalents. As of December 31, 2023, the Company held investments in U.S. government debt securities of $2,409,000. As of March 31, 2024 and December 31, 2023, the Company held investments in equity securities which consist of mutual funds of $550,000 and $735,000, respectively. U.S. government securities are valued using a model that incorporates market observable data, such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations. Money market and mutual funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. U.S. government securities are categorized in Level 2 of the fair value hierarchy, depending on the inputs used and market activity levels for specific securities. Mutual funds are categorized in Level 1 of the fair value hierarchy, depending on the unadjusted quoted prices in active markets for identical assets. The U.S. government debt securities, which , are reported as Cash and cash equivalents, and those with longer maturities are reported as Investments, on the Condensed Consolidated Balance Sheets Short-term investments in marketable securities have a stated maturity of twelve months or less from the balance sheet date. These securities are considered as available for sale and are reported at fair value. For debt securities, unrealized gains and losses are recorded net of tax as a component of Accumulated other comprehensive income within stockholders' equity. Realized gains and losses are calculated based on the specific identification method and are included in Interest and other income, net, in the Condensed Consolidated Statement of Operations. The Company follows the guidance in ASC 321, “Investments – Equity Securities” (“ASC 321”) for its investments in equity securities with unrealized and realized gains and losses recorded in Interest and other income, net, on the Condensed Consolidated Statement of Operations. The following table presents the Company’s financial instruments at fair value (in thousands): Fair Value Measurements Total Quoted Prices Significant Significant Investments in Mutual Funds $ 550 $ 550 $ - $ - Fair Value Measurements as of December 31, 2023 Total Quoted Prices Significant Significant Investments in U.S. Treasury bills $ 2,409 $ - $ 2,409 - Investments in Mutual Funds 735 735 - - Total $ 3,144 $ 735 $ 2,409 - Investments in equity securities as of March 31, 2024 are summarized by type below (in thousands). Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Mutual Funds $ 550 $ - $ - $ 550 Investments in debt and equity securities as of December 31, 2023 are summarized by type below (in thousands). Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury bills $ 2,369 $ 40 $ - $ 2,409 Mutual Funds 735 - - 735 Total $ 3,104 $ 40 $ - $ 3,144 All investments in debt securities are due in one year or less as of March 31, 2024. Changes in the accumulated other comprehensive income balance, net of income taxes, relates solely to net unrealized gain on available-for-sale securities for the three-month ended March 31, 2024 is as follows: Balance at December 31, 2023 $ 40 Amounts reclassified from accumulated other Comprehensive income to interest income and other income (56 ) (16 ) Net current-period other comprehensive income 16 Balance at March 31, 2024 $ - The Company may be exposed to credit losses through its available-for-sale investments. An available-for-sale security is impaired when its fair value declines below its amortized cost basis. Unrealized losses resulting from the amortized cost basis of any available-for-sale debt security exceeding its fair value are evaluated for identification of credit losses. When evaluating the investments for impairment at each reporting period, the Company reviews factors such as the extent of the unrealized loss, historical losses, current and future economic market conditions, and financial condition of the issuer. As of March 31, 2024, the Company has not recognized an allowance for expected credit losses related to its available-for-sale securities as the Company has not identified any unrealized losses for these investments attributable to credit factors.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Taxes [Abstract]
Income taxes	4. Income taxes No tax benefit has been recorded in relation to the pre-tax loss for the three months ended March 31, 2024 and 2023, due to a full valuation allowance to offset any deferred tax asset related to net operating loss carry forwards attributable to the losses.

Capital Stock

Capital Stock	3 Months Ended
	Mar. 31, 2024
Capital Stock [Abstract]
Capital Stock	5. Capital Stock The Company’s Board of Directors, without any vote or action by the holders of common stock, is authorized to issue preferred stock from time to time in one or more series and to determine the number of shares and to fix the powers, designations, preferences and relative, participating, optional or other special rights of any series of preferred stock. The Board of Directors authorized the Company to repurchase up to 5,000,000 outstanding shares of common stock from time to time either in open market or privately negotiated transactions. At March 31, 2024 and 2023, the Company had repurchased 2,234,721 shares of its common stock and a total of 2,765,279 of the authorized shares, remained available for repurchase as of March 31, 2024. On March 9, 2023, there were 285,000 shares of Company common stock issued to the independent directors of the Company, for payment of quarterly directors’ fees due to them for services in 2022, which were classified as issuable at December 31, 2022. The equity compensation awards were issued pursuant to the exemption from the registration requirements of Section 5 of the Securities Act of 1933 (“1933 Act”) provided by Section 4(a)(2) of the 1933 Act. In March 2023, the Company amended its Directors’ Compensation Program for Directors who are not employees of the Company to provide that effective January 1, 2023 and as long as the Company remains a shell company (i) the issuance of any annual stock compensation for Directors serving as a member of the Board or a committee of the Board shall be terminated, and (ii) the payment of any cash compensation for attendance in person or by telephone of meetings of the Board or committees of the Board shall be terminated.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (219)	$ (314)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Investment Valuation (Tables)

Investment Valuation (Tables)	3 Months Ended
	Mar. 31, 2024
Investment valuation [Abstract]
Schedule of Financial Instruments at Fair Value	The following table presents the Company’s financial instruments at fair value (in thousands): Fair Value Measurements Total Quoted Prices Significant Significant Investments in Mutual Funds $ 550 $ 550 $ - $ - Fair Value Measurements as of December 31, 2023 Total Quoted Prices Significant Significant Investments in U.S. Treasury bills $ 2,409 $ - $ 2,409 - Investments in Mutual Funds 735 735 - - Total $ 3,144 $ 735 $ 2,409 -
Schedule of Investments in Debt Securities	Investments in equity securities as of March 31, 2024 are summarized by type below (in thousands). Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Mutual Funds $ 550 $ - $ - $ 550 Investments in debt and equity securities as of December 31, 2023 are summarized by type below (in thousands). Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury bills $ 2,369 $ 40 $ - $ 2,409 Mutual Funds 735 - - 735 Total $ 3,104 $ 40 $ - $ 3,144
Schedule of Changes in the Accumulated Other Comprehensive Income Balance	Changes in the accumulated other comprehensive income balance, net of income taxes, relates solely to net unrealized gain on available-for-sale securities for the three-month ended March 31, 2024 is as follows: Balance at December 31, 2023 $ 40 Amounts reclassified from accumulated other Comprehensive income to interest income and other income (56 ) (16 ) Net current-period other comprehensive income 16 Balance at March 31, 2024 $ -

Per Share Data (Details)

Per Share Data (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Per Share Data [Abstract]
Weighted average outstanding shares	20,620,711	20,620,711

Investment Valuation (Details)

Investment Valuation (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Debt Securities [Member]
Investment Valuation (Details) [Line Items]
Debt securities	$ 2,422,000	$ 2,409,000
Mutual Fund [Member]
Investment Valuation (Details) [Line Items]
Equity securities	$ 550,000	$ 735,000

Investment Valuation (Details)

Investment Valuation (Details) - Schedule of Financial Instruments at Fair Value - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financial Instruments Owned and Pledged as Collateral [Line Items]
Total	$ 550	$ 3,144
Fair Value, Inputs, Level 1 [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Total		735
Fair Value, Inputs, Level 2 [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Total		2,409
Fair Value, Inputs, Level 3 [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Total
Investments in Mutual Funds [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Total	550	735
Investments in Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Total	550	735
Investments in Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Total
Investments in Mutual Funds [Member] | Fair Value, Inputs, Level 3 [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Total
Investments in U.S. Treasury bills [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Total		2,409
Investments in U.S. Treasury bills [Member] | Fair Value, Inputs, Level 1 [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Total
Investments in U.S. Treasury bills [Member] | Fair Value, Inputs, Level 2 [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Total		2,409
Investments in U.S. Treasury bills [Member] | Fair Value, Inputs, Level 3 [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Total

Investment Valuation (Details_2

Investment Valuation (Details) - Schedule of Investments in Debt Securities - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost		$ 3,104
Gross Unrealized Gains		40
Gross Unrealized Losses
Fair Value		3,144
Mutual Funds [Member]
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	$ 550	735
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	$ 550	735
U.S. Treasury bills [Member]
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost		2,369
Gross Unrealized Gains		40
Gross Unrealized Losses
Fair Value		$ 2,409

Investment Valuation (Details_3

Investment Valuation (Details) - Schedule of Changes in the Accumulated Other Comprehensive Income Balance $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Schedule of Changes in the Accumulated Other Comprehensive Income Balance [Abstract]
Balance	$ 40
Amounts reclassified from accumulated other Comprehensive income to interest income and other income	(56)
Changes in the accumulated other comprehensive income	(16)
Net current-period other comprehensive income	16
Balance

Capital Stock (Details)

Capital Stock (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Mar. 09, 2023
Capital Stock [Abstract]
Authorized number of shares to be repurchased	5,000,000
Number of shares repurchased	2,234,721	2,234,721
Remaining number of shares available for repurchase	2,765,279
Common stock issued	21,628,680		21,628,680	285,000