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Acquisitions (Tables) | 9 Months Ended
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Sep. 30, 2020
Business Combinations [Abstract] |
Schedule of Assets Acquired and Liabilities Assumed | The Company acquired various assets and liabilities from StockCross which were recorded at their historical carrying amounts and summarized below:
|  | Historical Carrying Value |
Assets acquired |  |  |
Cash and cash equivalents |  | $ | 1,588,000 |
Cash and securities segregated for regulatory purposes |  |  | 224,814,000 |
Receivables from customers |  |  | 86,331,000 |
Receivables from broker-dealers and clearing organizations |  |  | 3,105,000 |
Other receivables |  |  | 627,000 |
Prepaid expenses and other assets |  |  | 346,000 |
Securities borrowed |  |  | 193,529,000 |
Securities owned, at fair value |  |  | 3,018,000 |
Furniture, equipment and leasehold improvements, net |  |  | 19,000 |
Lease right-of-use assets |  |  | 1,141,000 |
Deferred tax assets |  |  | 407,000 |
Total Assets acquired |  |  | 514,925,000 |
Liabilities assumed |  |  |  |
Payables to customers |  |  | 308,091,000 |
Payables to non-customers |  |  | 9,151,000 |
Drafts payable |  |  | 2,834,000 |
Payables to broker-dealers and clearing organizations |  |  | 1,406,000 |
Accounts payable and accrued liabilities |  |  | 963,000 |
Securities loaned |  |  | 170,443,000 |
Securities sold, not yet purchased, at fair value |  |  | 28,000 |
Notes payable – related party |  |  | 5,000,000 |
Lease liabilities |  |  | 1,295,000 |
Total Liabilities assumed |  |  | 499,211,000 |
Net Assets acquired |  | $ | 15,714,000 |
Schedule of Statements of Operations | The following pro forma financial statements present the statements of income of the Company as if the acquisition of StockCross had occurred on January 1, 2019, inclusive of pro forma adjustments (unaudited). The combined results of these pro forma financial statements are also reflected in the Company’s financial statements for the periods presented for 2019. StockCross’ financial statements have already been consolidated in the Company’s financial statements for the periods presented for 2020: Statements of Operations Three Months Ended September 30, 2019 (unaudited)
|  | Three Months Ended September 30, 2019 |
|  | Siebert |  |  | StockCross |  |  | Pro Forma Adjustments |  |  | Total Combined Siebert |
Revenue |  |  |  |  |  |  |  |  |  |  |  |
Commissions and fees |  | $ | 1,925,000 |  |  | $ | 348,000 |  |  | $ | — |  |  | $ | 2,273,000 |
Margin interest, marketing and distribution fees |  |  | 2,944,000 |  |  |  | 968,000 |  |  |  | — |  |  |  | 3,912,000 |
Principal transactions |  |  | 2,041,000 |  |  |  | 286,000 |  |  |  | — |  |  |  | 2,327,000 |
Interest income |  |  | 23,000 |  |  |  | 1,038,000 |  |  |  | — |  |  |  | 1,061,000 |
Market making |  |  | — |  |  |  | 330,000 |  |  |  | — |  |  |  | 330,000 |
Stock borrow / stock loan |  |  | — |  |  |  | 349,000 |  |  |  | — |  |  |  | 349,000 |
Advisory fees |  |  | 211,000 |  |  |  | — |  |  |  | — |  |  |  | 211,000 |
Other income |  |  | — |  |  |  | 351,000 |  |  |  | (61,000 | ) |  |  | 290,000 |
Total Revenue |  |  | 7,144,000 |  |  |  | 3,670,000 |  |  |  | (61,000 | ) |  |  | 10,753,000 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Employee compensation and benefits |  |  | 3,157,000 |  |  |  | 1,652,000 |  |  |  | — |  |  |  | 4,809,000 |
Clearing fees, including execution costs |  |  | 617,000 |  |  |  | 242,000 |  |  |  | (61,000 | ) |  |  | 798,000 |
Technology and communications |  |  | 291,000 |  |  |  | 150,000 |  |  |  | — |  |  |  | 441,000 |
Other general and administrative |  |  | 589,000 |  |  |  | 279,000 |  |  |  | — |  |  |  | 868,000 |
Data processing |  |  | — |  |  |  | 527,000 |  |  |  | — |  |  |  | 527,000 |
Rent and occupancy |  |  | 380,000 |  |  |  | 250,000 |  |  |  | — |  |  |  | 630,000 |
Professional fees |  |  | 439,000 |  |  |  | 344,000 |  |  |  | — |  |  |  | 783,000 |
Depreciation and amortization |  |  | 244,000 |  |  |  | — |  |  |  | — |  |  |  | 244,000 |
Interest expense |  |  | — |  |  |  | 31,000 |  |  |  | — |  |  |  | 31,000 |
Total Expenses |  |  | 5,717,000 |  |  |  | 3,475,000 |  |  |  | (61,000 | ) |  |  | 9,131,000 |
Earnings of equity method investment in related party |  |  | 30,000 |  |  |  | — |  |  |  | (30,000 | ) |  |  | — |
Income before provision (benefit) for (from) income taxes |  |  | 1,457,000 |  |  |  | 195,000 |  |  |  | (30,000 | ) |  |  | 1,622,000 |
Provision (benefit) for (from) income taxes |  |  | 353,000 |  |  |  | 4,000 |  |  |  | (8,000 | ) |  |  | 349,000 |
Net income / (loss) |  | $ | 1,104,000 |  |  | $ | 191,000 |  |  | $ | (22,000 | ) |  | $ | 1,273,000 |
Net income per share of common stock |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic and diluted |  | $ | 0.04 |  |  | $ | 0.03 |  |  |  |  |  |  | $ | 0.04 |
Weighted average shares outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic and diluted |  |  | 27,157,188 |  |  |  | 6,152,500 |  |  |  |  |  |  |  |  |
Pro forma shares used to compute net income per share |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 30,455,962 |
Nine Months Ended September 30, 2019 (unaudited)
|  | Nine Months Ended September 30, 2019 |
|  | Siebert |  |  | StockCross |  |  | Pro Forma Adjustments |  |  | Total Combined Siebert |
Revenue |  |  |  |  |  |  |  |  |  |  |  |
Commissions and fees |  | $ | 6,030,000 |  |  | $ | 1,102,000 |  |  | $ | — |  |  | $ | 7,132,000 |
Margin interest, marketing and distribution fees |  |  | 8,499,000 |  |  |  | 2,662,000 |  |  |  | — |  |  |  | 11,161,000 |
Principal transactions |  |  | 5,479,000 |  |  |  | 659,000 |  |  |  | — |  |  |  | 6,138,000 |
Interest income |  |  | 54,000 |  |  |  | 3,363,000 |  |  |  | — |  |  |  | 3,417,000 |
Market making |  |  | — |  |  |  | 1,303,000 |  |  |  | — |  |  |  | 1,303,000 |
Stock borrow / stock loan |  |  | — |  |  |  | 1,353,000 |  |  |  | — |  |  |  | 1,353,000 |
Advisory fees |  |  | 572,000 |  |  |  | — |  |  |  | — |  |  |  | 572,000 |
Other income |  |  | — |  |  |  | 816,000 |  |  |  | (183,000 | ) |  |  | 633,000 |
Total Revenue |  |  | 20,634,000 |  |  |  | 11,258,000 |  |  |  | (183,000 | ) |  |  | 31,709,000 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Employee compensation and benefits |  |  | 8,882,000 |  |  |  | 4,930,000 |  |  |  | — |  |  |  | 13,812,000 |
Clearing fees, including execution costs |  |  | 1,849,000 |  |  |  | 659,000 |  |  |  | (183,000 | ) |  |  | 2,325,000 |
Technology and communications |  |  | 800,000 |  |  |  | 464,000 |  |  |  | — |  |  |  | 1,264,000 |
Other general and administrative |  |  | 1,861,000 |  |  |  | 926,000 |  |  |  | — |  |  |  | 2,787,000 |
Data processing |  |  | — |  |  |  | 1,487,000 |  |  |  | — |  |  |  | 1,487,000 |
Rent and occupancy |  |  | 995,000 |  |  |  | 759,000 |  |  |  | — |  |  |  | 1,754,000 |
Professional fees |  |  | 1,388,000 |  |  |  | 1,180,000 |  |  |  | — |  |  |  | 2,568,000 |
Depreciation and amortization |  |  | 670,000 |  |  |  | 19,000 |  |  |  | — |  |  |  | 689,000 |
Interest expense |  |  | — |  |  |  | 84,000 |  |  |  | — |  |  |  | 84,000 |
Total Expenses |  |  | 16,445,000 |  |  |  | 10,508,000 |  |  |  | (183,000 | ) |  |  | 26,770,000 |
Earnings of equity method investment in related party |  |  | 84,000 |  |  |  | — |  |  |  | (84,000 | ) |  |  | — |
Income before provision (benefit) for (from) income taxes |  |  | 4,273,000 |  |  |  | 750,000 |  |  |  | (84,000 | ) |  |  | 4,939,000 |
Provision (benefit) for (from) income taxes |  |  | 1,171,000 |  |  |  | 218,000 |  |  |  | (24,000 | ) |  |  | 1,365,000 |
Net income / (loss) |  | $ | 3,102,000 |  |  | $ | 532,000 |  |  | $ | (60,000 | ) |  | $ | 3,574,000 |
Net income per share of common stock |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic and diluted |  | $ | 0.11 |  |  | $ | 0.09 |  |  |  |  |  |  | $ | 0.12 |
Weighted average shares outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic and diluted |  |  | 27,157,188 |  |  |  | 6,152,500 |  |  |  |  |  |  |  |  |
Pro forma shares used to compute net income per share |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 30,455,962 |
Schedule of Statements of Financial Condition | Statements of Financial Condition
|  | As of December 31, 2019 |
|  | Siebert |  |  | StockCross |  |  | Pro Forma Adjustments (unaudited) |  |  | Total Combined Siebert (unaudited) |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 3,082,000 |  |  | $ | 1,588,000 |  |  | $ | — |  |  | $ | 4,670,000 |
Cash and securities segregated for regulatory purposes |  |  | 110,000 |  |  |  | 224,814,000 |  |  |  | — |  |  |  | 224,924,000 |
Receivables from customers |  |  | — |  |  |  | 86,331,000 |  |  |  | — |  |  |  | 86,331,000 |
Receivables from broker-dealers and clearing organizations |  |  | 3,067,000 |  |  |  | 1,265,000 |  |  |  | (808,000 | ) |  |  | 3,524,000 |
Receivables from related party |  |  | 1,000,000 |  |  |  | — |  |  |  | (1,000,000 | ) |  |  | — |
Other receivables |  |  | 223,000 |  |  |  | 627,000 |  |  |  | (88,000 | ) |  |  | 762,000 |
Prepaid expenses and other assets |  |  | 624,000 |  |  |  | 346,000 |  |  |  | — |  |  |  | 970,000 |
Securities borrowed |  |  | — |  |  |  | 193,529,000 |  |  |  | — |  |  |  | 193,529,000 |
Securities owned, at fair value |  |  | — |  |  |  | 3,018,000 |  |  |  | — |  |  |  | 3,018,000 |
Total Current assets |  |  | 8,106,000 |  |  |  | 511,518,000 |  |  |  | (1,896,000 | ) |  |  | 517,728,000 |
Deposits with broker-dealers and clearing organizations |  |  | 3,186,000 |  |  |  | 1,840,000 |  |  |  | (75,000 | ) |  |  | 4,951,000 |
Furniture, equipment and leasehold improvements, net |  |  | 1,131,000 |  |  |  | 19,000 |  |  |  | — |  |  |  | 1,150,000 |
Software, net |  |  | 1,888,000 |  |  |  | — |  |  |  | — |  |  |  | 1,888,000 |
Lease right-of-use assets |  |  | 2,810,000 |  |  |  | 1,141,000 |  |  |  | — |  |  |  | 3,951,000 |
Equity method investment in related party |  |  | 3,360,000 |  |  |  | — |  |  |  | (3,360,000 | ) |  |  | — |
Deferred tax assets |  |  | 4,981,000 |  |  |  | 407,000 |  |  |  | — |  |  |  | 5,388,000 |
Intangible assets, net |  |  | 1,022,000 |  |  |  | — |  |  |  | — |  |  |  | 1,022,000 |
Goodwill |  |  | 1,989,000 |  |  |  | — |  |  |  | — |  |  |  | 1,989,000 |
Total Assets |  | $ | 28,473,000 |  |  | $ | 514,925,000 |  |  | $ | (5,331,000 | ) |  | $ | 538,067,000 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payables to customers |  | $ | — |  |  | $ | 308,091,000 |  |  | $ | — |  |  | $ | 308,091,000 |
Payables to non-customers |  |  | — |  |  |  | 9,151,000 |  |  |  | (1,088,000 | ) |  |  | 8,063,000 |
Drafts payable |  |  | — |  |  |  | 2,834,000 |  |  |  | — |  |  |  | 2,834,000 |
Payables to broker-dealers and clearing organizations |  |  | — |  |  |  | 1,406,000 |  |  |  | (883,000 | ) |  |  | 523,000 |
Payables to related parties |  |  | 7,000 |  |  |  | — |  |  |  | (7,000 | ) |  |  | — |
Accounts payable and accrued liabilities |  |  | 1,473,000 |  |  |  | 963,000 |  |  |  | 7,000 |  |  |  | 2,443,000 |
Securities loaned |  |  | — |  |  |  | 170,443,000 |  |  |  | — |  |  |  | 170,443,000 |
Securities sold, not yet purchased, at fair value |  |  | 88,000 |  |  |  | 28,000 |  |  |  | — |  |  |  | 116,000 |
Interest payable |  |  | 10,000 |  |  |  | — |  |  |  | — |  |  |  | 10,000 |
Current portion of notes payable - related party |  |  | 3,000,000 |  |  |  | 5,000,000 |  |  |  | — |  |  |  | 8,000,000 |
Current portion of lease liabilities |  |  | 1,291,000 |  |  |  | 936,000 |  |  |  | — |  |  |  | 2,227,000 |
Total Current liabilities |  |  | 5,869,000 |  |  |  | 498,852,000 |  |  |  | (1,971,000 | ) |  |  | 502,750,000 |
Lease liabilities, less current portion |  |  | 1,823,000 |  |  |  | 359,000 |  |  |  | — |  |  |  | 2,182,000 |
Total Liabilities |  |  | 7,692,000 |  |  |  | 499,211,000 |  |  |  | (1,971,000 | ) |  |  | 504,932,000 |
Commitments and Contingencies |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stockholders’ equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock, $.01 par value |  |  | 271,000 |  |  |  | 10,000 |  |  |  | 23,000 |  |  |  | 304,000 |
Additional paid-in capital |  |  | 7,641,000 |  |  |  | 12,436,000 |  |  |  | (180,000 | ) |  |  | 19,897,000 |
Retained earnings |  |  | 12,869,000 |  |  |  | 3,268,000 |  |  |  | (3,203,000 | ) |  |  | 12,934,000 |
Total Stockholders’ equity |  |  | 20,781,000 |  |  |  | 15,714,000 |  |  |  | (3,360,000 | ) |  |  | 33,135,000 |
Total Liabilities and stockholders' equity |  | $ | 28,473,000 |  |  | $ | 514,925,000 |  |  | $ | (5,331,000 | ) |  | $ | 538,067,000 |
Schedule of Proforma Statements | The following pro forma summary presents the statements of income of the Company as if the acquisition of WP had occurred on January 1, 2019, inclusive of pro forma adjustments (unaudited). WP’s financial statements have already been consolidated as part of the Company’s financial statements for the periods presented for 2020.
|  | Three Months Ended September 30, 2019 |  |  | Nine Months Ended September 30, 2019 |
Revenue |  | $ | 14,372,000 |  |  | $ | 41,191,000 |
Operating income |  | $ | 1,905,000 |  |  | $ | 3,693,000 |
Net income |  | $ | 1,577,000 |  |  | $ | 2,407,000 |

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