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Segment Reporting
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting

3. Segment Reporting

 

In its operation of the business, management, including the Company’s chief operating decision maker, who is also the Company’s Chief Executive Officer, reviews certain financial information, including segmented statements of operations and the balance sheets.

 

The Company currently operates in two reportable segments: in the broker dealer and intellectual property service segment as well as in the technology development segment.

 

The broker dealer and intellectual property service segment currently has two subsidiaries, Public Ventures and PatentVest. Public Ventures is a full-service broker dealer firm focusing on conducting private and public securities offerings. PatentVest offers in-depth patent research used for investment banking due diligence.

 

The technology development segment currently has one subsidiary, Invizyne. Invizyne is a research and development stage company synthetic biology company.

 

Non-income generating subsidiaries for management of the business, including MDB CG Management Company, Inc. are reported as other.

 

The segments are based on the discrete financial information reviewed by the Chief Executive Officer to make resource allocation decisions and to evaluate performance. The reportable segments are each managed separately because they will provide a distinct product or provide services with different processes. All reported segment revenues are derived from external customers.

 

The accounting policies of the Company’s reportable segments are in consideration of ASC 280 and the same as those described in the summary of significant accounting policies (see Note 2).

 

 

The following sets forth the long-lived assets and total assets by segment at September 30, 2023:

 

ASSETS   Broker Dealer & Intellectual Property Service     Technology Development     Other     Consolidated  
Long-lived assets   $ 104,379     $ 2,114,910     $ 749,230     $ 2,968,519  
Total assets   $ 11,000,067     $ 3,422,464     $ 29,040,239     $ 43,462,770  

 

The following sets forth statements of operations by segment for the three-months September 30, 2023:

 

   Broker Dealer & Intellectual Property Service   Technology Development   Other   Consolidated 
Operating income:                    
Unrealized loss on investment securities, net (from our licensed broker dealer)  $(786,906)  $-   $-   $(786,906)
Other operating income   11,502    -    -    11,502 
Total operating loss, net   (775,404)   -    -    (775,404)
                     
Operating costs:                    
General and administrative costs:                    
Compensation   793,061    119,146    425,564    1,337,771 
Operating expense, related party   223,254    -    50,567    273,821 
Professional fees   108,959    92,506    258,120    459,585 
Information technology   71,988    7,012    14,326    93,326 
Clearing and other charges   3,316    -    -    3,316 
General and administrative-other   63,266    145,243    119,387    327,896 
Total general and administrative costs   1,263,844    363,907    867,964    2,495,715 
Research and development costs   -    27,936    -    27,936 
Total operating costs   1,263,844    391,843    867,964    2,523,651 
Net operating loss   (2,039,248)   (391,843)   (867,964)   (3,299,055)
Other income:                    
Interest income   28,110    -    148,190    176,300 
Net loss before income taxes   (2,011,138)   (391,843)   (719,774)   (3,122,755)
Income taxes   -    63,559    -    63,559 
Net loss   (2,011,138)   (455,402)   (719,774)   (3,186,314)
Less net loss attributable to non-controlling interests   -    (177,853)   -    (177,853)
Net loss attributable to MDB Capital Holdings, LLC  $(2,011,138)  $(277,549)  $(719,774)  $(3,008,461)

 

 

The following sets forth statements of operations by segment for the nine-months ended September 30, 2023:

 

   Broker Dealer & Intellectual Property Service   Technology Development   Other   Consolidated 
Operating income:                    
Unrealized gain on investment securities, net (from our licensed broker dealer)  $696,965   $-   $-   $696,965 
                     
Fee income   4,233,120    -    -    4,233,120 
Other operating income   70,104    70,769    -    140,873 
Total operating income, net   5,000,189    70,769    -    5,070,958 
                     
Operating costs:                    
General and administrative costs:                    
Compensation   1,912,536    289,152    981,827    3,183,515 
Operating expense, related party   687,995    -    141,479    829,474 
Professional fees   316,388    301,244    623,457    1,241,089 
Information technology   333,940    16,247    58,688    408,875 
Clearing and other charges   382,994    -    -    382,994 
General and administrative-other   262,131    208,203    412,899    883,233 
Total general and administrative costs   3,895,984    814,846    2,218,350    6,929,180 
Research and development costs   -    67,095    -    67,095 
Total operating costs   3,895,984    881,941    2,218,350    6,996,275 
Net operating income (loss)   1,104,205    (811,172)   (2,218,350)   (1,925,317)
Other income:                    
Interest income   75,991    100    472,388    548,479 
Net income (loss) before income taxes   1,180,196    (811,072)   (1,745,962)   (1,376,838)
Income taxes   320,584    63,559    -    384,143 
Net income (loss)   859,612    (874,631)   (1,745,962)   (1,760,981)
Less net loss attributable to non-controlling interests   -    (341,631)   -    (341,631)
Net income (loss) attributable to MDB Capital Holdings, LLC  $859,612   $(533,000)  $(1,745,962)  $(1,419,350)

 

 

The following sets forth the long-lived assets and total assets by segment at December 31, 2022:

 

ASSETS  Broker Dealer & Intellectual Property Service   Technology Development   Other   Consolidated 
Long-lived assets  $-   $1,216,418   $817,958   $2,034,376 
Total assets  $4,737,137   $2,685,657   $18,278,277   $25,701,071 

 

The following sets forth statements of operations by segment for the three-months ended September 30, 2022:

 

   Broker Dealer & Intellectual Property Service   Technology Development   Other   Consolidated 
Operating income:                    
Unrealized gain on investment securities, net (from our licensed broker dealer)  $16,072   $-   $-   $16,072 
                     
Other operating income   27,073    21    30,809    57,903 
Total operating income, net   43,145    21    30,809    73,975 
                     
Operating costs:                    
General and administrative costs:                    
Compensation   633,083    82,430    414,743    1,130,256 
Operating expense, related party   431,172    -    83,626    514,798 
Professional fees   36,865    14,170    -    51,035 
Information technology   85,978    5,039    2,448    93,465 
Clearing and other charges   2,547    -    -    2,547 
General and administrative-other   71,743    150,332    184,461    406,536 
Total general and administrative costs   1,261,388    251,971    685,278    2,198,637 
Research and development costs   -    103,633    -    103,633 
Total operating costs   1,261,388    355,604    685,278    2,302,270 
Net operating loss   (1,218,243)   (355,583)   (654,469)   (2,228,295)
Other income:                    
Net loss before income taxes   (1,218,243)   (355,583)   (654,469)   (2,228,295)
Income taxes   -    -    -    - 
Net loss   (1,218,243)   (355,583)   (654,469)   (2,228,295)
Less net loss attributable to non-controlling interests   -    (144,715)   -    (144,715)
Net loss attributable to MDB Capital Holdings, LLC  $(1,218,243)  $(210,868)  $(654,469)  $(2,083,580)

 

 

The following sets forth statements of operations by segment for the nine-months ended September 30, 2022:

 

   Broker Dealer & Intellectual Property Service   Technology Development   Other   Consolidated 
Operating income (loss):                    
Unrealized loss on investment securities, net (from our licensed broker dealer)  $(3,836)  $-   $-   $(3,836)
Realized loss on investment securities   (7)   -    -    (7)
Other operating income   76,513    34    30,809    107,356 
Total operating income, net   72,670    34    30,809    103,513 
                     
Operating costs:                    
General and administrative costs:                    
Compensation   1,359,236    313,928    546,790    2,219,954 
Operating expense, related party   794,054    -    88,547    882,601 
Professional fees   542,811    84,403    25,499    652,713 
Information technology   187,768    15,057    5,119    207,944 
Clearing and other charges   22,342    -    -    22,342 
General and administrative-other   471,039    274,832    278,890    1,024,761 
General and administrative costs   3,377,250    688,220    944,845    5,010,315 
Research and development costs   -    295,779    -    295,779 
Total operating costs   3,377,250    983,999    944,845    5,306,094 
Net operating loss   (3,304,580)   (983,965)   (914,036)   (5,202,581)
Loss before income taxes   (3,304,580)   (983,965)   (914,036)   (5,202,581)
Income tax   -    -    -    - 
Net loss   (3,304,580)   (983,965)   (914,036)   (5,202,581)
Less net loss attributable to non-controlling interests   -    (418,677)   -    (418,677)
Net loss attributable to controlling interests  $(3,304,580)  $(565,288)  $(914,036)  $(4,783,904)