PART I FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for Q2 2020 show a significant revenue decline and net loss, driven by lower assets under management and increased cash use for financing activities [Condensed Consolidated Balance Sheets](index=4&type=page&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2020, total assets decreased to $147.4 million from $178.7 million, primarily due to reductions in cash and investments, while liabilities and equity also declined Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $43,926 | $49,766 | | Investments, at fair value | $30,228 | $50,324 | | Total current assets | $87,378 | $116,961 | | Total assets | $147,421 | $178,707 | | **Liabilities & Equity** | | | | Total current liabilities | $8,678 | $21,355 | | Total liabilities | $15,992 | $30,420 | | Total stockholders' equity | $131,429 | $148,287 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=page&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) For Q2 2020, the company reported a net loss of $2.6 million, a reversal from prior year's net income, driven by a 27% decrease in total revenues Statement of Comprehensive Income (Loss) Summary (in thousands, except per share data) | Metric | Q2 2020 | Q2 2019 | Six Months 2020 | Six Months 2019 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $15,875 | $21,709 | $32,544 | $45,571 | | Total Expenses | $18,009 | $19,130 | $34,262 | $41,496 | | Net Operating Income (Loss) | $(2,134) | $2,579 | $(1,718) | $4,075 | | Net Income (Loss) | $(2,575) | $1,861 | $(1,473) | $2,253 | | Diluted EPS | $(0.33) | $0.22 | $(0.18) | $0.27 | [Condensed Consolidated Statement of Stockholders' Equity](index=6&type=page&id=Condensed%20Consolidated%20Statement%20of%20Stockholders%27%20Equity) Total stockholders' equity decreased to $131.4 million by June 30, 2020, primarily due to a net loss, treasury stock purchases, and dividend payments - For the six months ended June 30, 2020, key activities impacting stockholders' equity included a net loss of **$1.5 million**, **$13.0 million** in treasury stock purchases, and **$3.9 million** in dividends declared[11](index=11&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=page&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations remained stable, but financing activities significantly increased cash usage due to substantial treasury stock purchases and dividend payments, leading to a $5.8 million decrease in cash Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $21,824 | $21,061 | | Net cash used in investing activities | $(56) | $(652) | | Net cash used in financing activities | $(25,812) | $(18,032) | | Net Change in Cash and Cash Equivalents | $(5,840) | $3,861 | [Notes to Condensed Consolidated Financial Statements](index=9&type=page&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail business operations, accounting policies, and financial items, including revenue disaggregation, segment performance, and a subsequent event regarding office closure Revenue Disaggregated by Account Type (in thousands) | Account Type | Q2 2020 | Q2 2019 | Six Months 2020 | Six Months 2019 | | :--- | :--- | :--- | :--- | :--- | | Institutional | $6,857 | $9,372 | $14,757 | $19,811 | | Mutual Funds | $2,393 | $5,212 | $5,464 | $11,077 | | Wealth Management | $78 | $111 | $209 | $213 | | Trust Fees | $5,657 | $6,444 | $11,608 | $12,983 | - On July 27, 2020, the Board of Directors approved the closure of Westwood International Advisors and the Toronto office, with expected net expenses of approximately **$0.4 million** in the second half of 2020[78](index=78&type=chunk) - The company repurchased **679,756 shares** for **$13.0 million** in the first six months of 2020 under its share repurchase program. An additional **$10.0 million** was authorized for repurchases in April 2020[67](index=67&type=chunk)[68](index=68&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 27% Q2 2020 revenue decline to lower AUM, which fell 23% year-over-year, while expenses were managed down, and liquidity remains strong despite dividend suspension [Assets Under Management (AUM)](index=27&type=page&id=Assets%20Under%20Management) Total AUM decreased by 23% to $11.9 billion by June 30, 2020, due to net outflows and market depreciation across all categories, especially Mutual Funds AUM by Category (in millions) | Category | As of June 30, 2020 | As of June 30, 2019 | Change | | :--- | :--- | :--- | :--- | | Institutional | $6,183 | $8,377 | (26)% | | Wealth Management | $3,985 | $4,399 | (9)% | | Mutual Funds | $1,740 | $2,612 | (33)% | | **Total AUM** | **$11,908** | **$15,388** | **(23)%** | Roll-Forward of AUM - Six Months Ended June 30, 2020 (in millions) | Metric | Amount | | :--- | :--- | | Beginning AUM (Jan 1, 2020) | $15,235 | | Net client flows | $(1,764) | | Market appreciation (depreciation) | $(1,563) | | **Ending AUM (June 30, 2020)** | **$11,908** | [Results of Operations](index=29&type=page&id=Results%20of%20Operations) Q2 2020 revenues fell 27% due to lower AUM, while expenses decreased by 6%, resulting in an operating loss and a net loss for the six-month period Results of Operations Summary (in thousands) | Metric | Q2 2020 | Q2 2019 | % Change | | :--- | :--- | :--- | :--- | | Total revenues | $15,875 | $21,709 | (27)% | | Total expenses | $18,009 | $19,130 | (6)% | | Net income (loss) | $(2,575) | $1,861 | (238)% | - The decrease in Q2 2020 expenses was primarily due to reductions in incentive compensation, lower headcount, and reduced travel costs as a result of COVID-19[110](index=110&type=chunk)[111](index=111&type=chunk)[113](index=113&type=chunk) [Supplemental Financial Information (Non-GAAP)](index=33&type=page&id=Supplemental%20Financial%20Information) The company's non-GAAP Economic Earnings and EPS significantly decreased in Q2 2020, reflecting a 95% drop in Economic Earnings to $0.2 million Reconciliation to Economic Earnings (in thousands, except per share data) | Metric | Q2 2020 | Q2 2019 | Six Months 2020 | Six Months 2019 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $(2,575) | $1,861 | $(1,473) | $2,253 | | Add: Stock-based compensation | $2,305 | $2,430 | $4,921 | $5,682 | | Add: Intangible amortization | $435 | $423 | $858 | $836 | | Add: Tax benefit from goodwill | $59 | $59 | $118 | $118 | | **Economic Earnings** | **$224** | **$4,773** | **$4,424** | **$8,889** | | **Economic EPS** | **$0.03** | **$0.56** | **$0.54** | **$1.05** | [Liquidity and Capital Resources](index=33&type=page&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $74.2 million in cash and no debt, but suspended its Q2 dividend to preserve capital amid COVID-19 uncertainties - As of June 30, 2020, the company had cash and short-term investments of **$74.2 million** and **no debt**[130](index=130&type=chunk) - The company **suspended its second quarter 2020 dividend** to preserve capital and provide financial flexibility amid uncertainties created by COVID-19[126](index=126&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There were no significant changes in market risk disclosures from the 2019 Form 10-K - There were **no significant changes** in market risk disclosures from the 2019 Form 10-K[137](index=137&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2020, with no material changes to internal controls over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were **effective as of the end of the period**[138](index=138&type=chunk) - **No material changes** were made to internal controls over financial reporting during the quarter ended June 30, 2020[139](index=139&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period - **None**[141](index=141&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor related to the COVID-19 pandemic has been added, highlighting its potential material adverse effect on the company's business and operations - A **new risk factor** has been added related to the COVID-19 pandemic, which could negatively impact the company's business, financial condition, and operations. The full impact is unknown and cannot be reasonably estimated at this time[144](index=144&type=chunk) [Issuer Purchases of Equity Securities](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2020, the company repurchased 407,697 shares for $19.83 per share, with an additional $10.0 million authorized for the repurchase program Share Repurchases - Q2 2020 | Month | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2020 | 407,697 | $19.83 | - In April 2020, the Board authorized an additional **$10.0 million** for the share repurchase program, bringing the total available for repurchase to **$10.0 million** as of the report date[147](index=147&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial data

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________________________________ FORM 10-Q ____________________________________________________________________________________________________ (Exact name of registrant as specified in its charter) ____________________________________________________________________________________________________ (State or other jurisdiction of incorporation or organization) (IRS Empl ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________ Form 10-K ____________________________________________________________________________ (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commis ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________________________________________________________ FORM 10-Q ________________________________________________________________________________________________________ ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2019 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchang ...

UNITED STATES For the quarterly period ended June 30, 2019 OR ¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________________________________________________________ FORM 10-Q ________________________________________________________________________________________________________ x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (Exact name of registrant as specified in its charter) ________________________________________________________________________________________________________ For the quarterly period ended March 31, 2019 OR ¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . Commission file number 1-31234 ______ ...

____________________________________________________________________________ Form 10-K ____________________________________________________________________________ (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commis ...