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Equity Method Investments in Related Parties | 12 Months Ended
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Dec. 31, 2022
Equity Method Investments in Related Parties [Abstract] |
Equity Method Investments in Related Parties | 11. Equity Method Investments in Related Parties Tigress The Company’s investment in Tigress is accounted for under the equity method of accounting. In determining whether the investment in Tigress should be accounted for under the equity method of accounting, the Company considered the guidance under ASC 323, Investments – Equity Method and Joint Ventures. Prior to the Reorganization Agreement, the Company maintained 24% ownership interest in Tigress, which represented a significant ownership level, the Company and Tigress had common representation on their respective Board of Directors, and certain employees of Tigress were also employees of RISE. Based on these criteria, the Company determined that it was able to exercise significant influence over Tigress, and therefore the equity method of accounting applied for this investment. After the Reorganization Agreement, the Company owned 17% of Tigress. The Company concluded that it still had significant influence over Tigress due to the representation of Gloria E. Gebbia on the Board of Directors of Tigress. Therefore, the Company continues to account for this investment under the equity method of accounting as of December 31, 2022. Under the equity method, the Company recognizes its share of Tigress’ income or loss in the line item “Earnings of equity method investment in related parties” in the statements of operations. The Company has elected to classify distributions received from equity method investees using the cumulative earnings approach. The loss recognized from the Company’s investment in Tigress was $16,000 for the year ended December 31, 2022. The earnings recognized from the Company’s investment in Tigress was $172,000 for the year ended December 31, 2021. The Company received cash distributions from Tigress of $259,000 for the year ended December 31, 2022. The Company did not receive any cash distributions from Tigress in 2021; however, RISE made a distribution of $156,000 to Siebert in 2021 in lieu of a corresponding distribution from Tigress. As of December 31, 2022 and 2021, the carrying amount of the investment in Tigress was $2,584,000 and $8,156,000, respectively. There were no events or circumstances suggesting the carrying amount of the investment was impaired as of December 31, 2022 and 2021. Below is a table showing the summary from the consolidated statements of operations and financial condition for Tigress for the periods indicated (unaudited):
| Year Ended December 31,
|  |  | 2022 |  |  |  | 2021
Revenue |  | $ | 8,432,000 |  |  | $ | 15,000,000 |
Operating income (loss) |  | $ | (132,000 | ) |  | $ | 4,800,000 |
Net income (loss) |  | $ | (132,000 | ) |  | $ | 4,800,000 |
| As of December 31,
|  |  | 2022 |  |  |  | 2021
Assets |  | $ | 8,169,000 |  |  | $ | 10,793,000 |
Liabilities |  | $ | 5,301,000 |  |  | $ | 6,096,000 |
Stockholders’ Equity |  | $ | 2,868,000 |  |  | $ | 4,697,000 |
Hedge Connection Prior to the Termination Agreement, the Company determined that it was able to exercise significant influence over Hedge Connection as the Company had a significant level of ownership and had the right to appoint a director to Hedge Connection’s Board of Directors. As such, the equity method of accounting applied for this investment, and the Company recognized $20,000 from its investment in Hedge Connection during the year ended December 31, 2022, which is in the line item “Earnings of equity method investment in related parties” in the statements of operations. The Company did not receive any cash distributions from Hedge Connection for the year ended December 31, 2022. As of December 31, 2022 and 2021, the carrying amount of the investment in Hedge Connection was both $0.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI https://asc.fasb.org/topic&trid=2196965 + Details
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