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Organization and Basis of Presentation | 3 Months Ended
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Mar. 31, 2024
Organization and Basis of Presentation [Abstract] |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation Organization Siebert Financial Corp., a New York corporation, incorporated in 1934, is a holding company that conducts the following lines of business through its wholly-owned and majority-owned subsidiaries:
| ● | Muriel Siebert & Co., LLC (“MSCO”) provides retail brokerage services. MSCO is a Delaware corporation and broker-dealer registered with the Securities and Exchange Commission (“SEC”) under the Exchange Act and the Commodity Exchange Act of 1936, and member of the Financial Industry Regulatory Authority (“FINRA”), the New York Stock Exchange (“NYSE”), the Securities Investor Protection Corporation (“SIPC”), and the National Futures Association (“NFA”).
| ● | Siebert AdvisorNXT, LLC (“SNXT”) provides investment advisory services. SNXT is a New York corporation registered with the SEC as a Registered Investment Advisor (“RIA”) under the Investment Advisers Act of 1940.
| ● | Park Wilshire Companies, Inc. (“PW”) provides insurance services. PW is a Texas corporation and licensed insurance agency.
| ● | Siebert Technologies, LLC (“STCH”) provides technology development. STCH is a Nevada limited liability company.
| ● | RISE Financial Services, LLC (“RISE”) is a Delaware limited liability company and a broker-dealer registered with the SEC and NFA.
| ● | StockCross Digital Solutions, Ltd. (“STXD”) is an inactive subsidiary headquartered in Bermuda.
For purposes of this Report on Form 10-Q, the terms “Siebert,” “Company,” “we,” “us,” and “our” refer to Siebert Financial Corp., MSCO, SNXT, PW, STCH, RISE, and STXD collectively, unless the context otherwise requires. Effective January 1, 2024, MSCO changed its name from Muriel Siebert & Co., Inc. to Muriel Siebert & Co., LLC, and SNXT changed its name to from Siebert AdvisorNXT, Inc. to Siebert AdvisorNXT, LLC with their tax status changing from C-Corporations to LLCs under state law. Refer to Note 24 – Subsequent Events in the Company’s 2023 Form 10-K for more information. The Company is headquartered in Miami Beach, FL with primary operations in Florida, New York, and California. The Company has 10 branch offices throughout the U.S. and clients around the world. The Company’s SEC filings are available through the Company’s website at www.siebert.com, where investors can obtain copies of the Company’s public filings free of charge. The Company’s common stock, par value $.01 per share, trades on the Nasdaq Capital Market under the symbol “SIEB.” The Company primarily operates in the securities brokerage and asset management industry and has no other reportable segments. All of the Company’s revenues for the three months ended March 31, 2024 and 2023 were derived from its operations in the U.S. As of March 31, 2024, the Company is comprised of a single operating segment based on the factors related to management’s decision-making framework as well as management evaluating performance and allocating resources based on assessments of the Company from a consolidated perspective. Basis of Presentation The accompanying unaudited condensed consolidated financial statements (“financial statements”) of the Company have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete annual financial statements. The U.S. dollar is the functional currency of the Company and numbers are rounded for presentation purposes. In the opinion of management, the financial statements contain all adjustments (consisting of normal recurring entries) necessary to fairly present such interim results. Interim results are not necessarily indicative of the results of operations which may be expected for a full year or any subsequent period. These financial statements should be read in conjunction with the financial statements and notes thereto in the Company’s 2023 Form 10-K. Reclassification Certain prior year amounts have been reclassified to conform to the presentation of the current period. The Company reclassified $54,000 related to a certain revenue stream from the line item “Commissions and fees” to “Other income” on the statements of operations for the three months ended March 31, 2023 to conform to the presentation of the current period. The reclassification has not materially impacted the Company’s financial statements, and did not result in a change in total revenue, net income or cash flows from operations for the periods presented. Principles of Consolidation The financial statements include the accounts of Siebert and its wholly-owned and majority-owned consolidated subsidiaries. Upon consolidation, all intercompany balances and transactions are eliminated. The Company’s ownership in RISE is 68% as of both March 31, 2024 and December 31, 2023. Refer to Note 4 – RISE for more information. For consolidated subsidiaries that are not wholly-owned, the third-party holdings of equity interests are referred to as noncontrolling interests. The net income or loss attributable to noncontrolling interests for such subsidiaries is presented as net income or loss attributable to noncontrolling interests in the statements of operations. The portion of total equity that is attributable to noncontrolling interests for such subsidiaries is presented as noncontrolling interests in the statements of financial condition. For investments in entities in which the Company does not have a controlling financial interest but has significant influence over its operating and financial decisions, the Company applies the equity method of accounting with net income and losses recorded in earnings of equity method investment in related party. Fiscal Period End of Subsidiary MSCO, as a registered securities broker-dealer, reports on a trade date basis in accordance with U.S. GAAP. Due to a trading holiday on March 29, 2024 followed by a weekend, MSCO’s regulatory reporting period was through March 28, 2024. As such, MSCO’s reported balances are as of March 28, 2024 and for the period from January 1, 2024 to March 28, 2024. In accordance with ASC 810-10-45-12, the Company does not ordinarily adjust its consolidated financial statements for differences in activity from a subsidiaries’ regulatory reporting period-end and the Company’s period-end. Instead, the Company discloses the effects of the intervening events that materially affect the consolidated financial position or results of operations. The below table represents activity during the intervening period of March 29, 2024 to March 31, 2024 that impacted the consolidated financial statements as reported:
|  | As of March 31, 2024 |
|  | Amounts Presented in the Consolidated Statement of Financial Condition |  |  | March 29 - 31, 2024 Activity |  |  | Adjusted Amount |
Assets |  |  |  |  |  |  |  |  |
Cash |  | $ | 2,856,000 |  |  |  | 4,771,000 |  |  |  | 7,627,000 |
Receivables from non-customers |  | $ | 646,000 |  |  |  | (8,000 | ) |  |  | 638,000 |
Other receivables |  | $ | 2,620,000 |  |  |  | (265,000 | ) |  |  | 2,355,000 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Drafts payable |  | $ | 1,834,000 |  |  |  | (1,191,000 | ) |  |  | 643,000 |
Bank loans |  | $ | 4,800,000 |  |  |  | (4,800,000 | ) |  |  | — |
Payables to customers |  | $ | 248,339,000 |  |  |  | 10,480,000 |  |  |  | 258,819,000 |
Stockholders’ equity |  |  |  |  |  |  |  |  |  |  |  |
Retained earnings |  | $ | 30,496,000 |  |  |  | 9,000 |  |  |  | 30,505,000 |
|  | Three Months Ended March 31, 2024 |
|  | Amounts Presented in the Condensed Consolidated Statements of Operations |  |  | March 29 - 31, 2024 Activity |  |  | Adjusted Amount |
Revenue |  |  |  |  |  |  |  |  |
Other income |  | $ | 627,000 |  |  |  | 9,000 |  |  |  | 636,000 |
Significant Accounting Policies The Company’s significant accounting policies are included in Note 2 – Summary of Significant Accounting Policies in the Company’s 2023 Form 10-K. During the three months ended March 31, 2024, other than the below, there were no significant changes made to the Company’s significant accounting policies. The potential effect of rights of setoff associated with the Company’s recognized assets and liabilities related to the Company’s securities borrowing and securities lending activity is as follows as of the periods presented.
|  | As of March 31, 2024 |
|  | Gross Amounts of Recognized Assets and Liabilities |  |  | Gross Amounts Offset in the Consolidated Statements of Financial Condition1 |  |  | Net Amounts Presented in the Consolidated Statements of Financial Condition |  |  | Collateral Received or Pledged2 |  |  | Net Amount3 |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities borrowed |  | $ | 383,670,000 |  |  |  | — |  |  |  | 383,670,000 |  |  | $ | 363,742,000 |  |  | $ | 19,928,000 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities loaned |  | $ | 389,474,000 |  |  |  | — |  |  |  | 389,474,000 |  |  | $ | 381,888,000 |  |  | $ | 7,586,000 |
|  | As of December 31, 2023 |
|  | Gross Amounts of Recognized Assets and Liabilities |  |  | Gross Amounts Offset in the Consolidated Statements of Financial Condition1 |  |  | Net Amounts Presented in the Consolidated Statements of Financial Condition |  |  | Collateral Received or Pledged2 |  |  | Net Amount3 |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities borrowed |  | $ | 394,709,000 |  |  |  | — |  |  |  | 394,709,000 |  |  | $ | 371,076,000 |  |  | $ | 23,633,000 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities loaned |  | $ | 419,433,000 |  |  |  | — |  |  |  | 419,433,000 |  |  | $ | 404,312,000 |  |  | $ | 15,121,000 |
| 1) | Amounts represent recognized assets and liabilities that are subject to enforceable master agreements with rights of setoff.
| 2) | Represents the fair value of collateral the Company had received or pledged under enforceable master agreements.
| 3) | Represents the amount for which, in the case of net recognized assets, the Company had not received collateral, and in the case of net recognized liabilities, the Company had not pledged collateral.

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