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Segment Reporting
 3 Months Ended
Mar. 31, 2024
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 March 31, 2024:

 

ASSETS  Broker
Dealer &
Intellectual
Property
Service		   Technology
Development		   Other   Eliminations   Consolidated 
Long-lived assets  $107,458   $2,367,496   $707,455   $          -   $3,182,409 
Total assets  $16,301,072   $4,005,204   $20,633,600   $-   $40,939,876 

 

 

The following sets forth statements of operations by segment for the three-months March 31, 2024:

 

   Broker
Dealer &
Intellectual
Property
Service		   Technology Development   Other   Eliminations     Consolidated 
Operating income:                            
Unrealized gain on investment securities, net (from our licensed broker dealer)  $(747,268)  $-   $-   $             -     $(747,268)
Other operating income   86,879    -    -     -      86,879 
Total operating income, net   (660,389)    -    -     -      (660,389) 
                             
Operating costs:                            
General and administrative costs:                            
Compensation   679,907    390,043    3,822,725     -      4,892,675 
Operating expense, related party   243,876    -    76,416     -      320,292 
Professional fees   145,907    256,563    516,619     -      919,089 
Information technology   180,914    3,891    21,186     -      205,991 
Clearing and other charges   2,036    -    -     -      2,036 
General and administrative-other   218,936    80,378    369,812     -      669,126 

General and administrative costs

   1,471,576    730,875    4,806,758     -      7,009,209 
Research and development costs   -    277,582    -     -      277,582 
Total operating costs   1,471,576    1,008,457    4,806,758     -      7,286,791 
Net operating income (loss)   (2,131,965)   (1,008,457)   (4,806,758)    -      (7,947,180)
Other income and expense:                            
Less: interest expense   110,625    -    -     110,625      - 
Interest income   52,459    -    285,393     -      337,852 

Income (loss) before income taxes

   (2,190,131)   (1,008,457)   (4,521,365)    110,625      (7,609,328)

Income tax expense

   -    -    -     -      - 

Net income (loss)

   (2,190,131)   (1,008,457)   (4,521,365)    110,625      (7,609,328)
Less net loss attributable to non-controlling interests   -    (393,903)   -     -      (393,903)
Net loss attributable to MDB Capital Holdings, LLC  $(2,190,131)  $(614,554)  $(4,521,365)  $ 110,625     $(7,215,425)

 

The following sets forth the long-lived assets and total assets by segment at December 31, 2023:

 

ASSETS  Broker
Dealer &
Intellectual
Property
Service		   Technology
Development		   Other   Consolidated 
Long-lived assets  $113,114   $2,344,895   $728,600   $3,186,609 
Total assets  $15,038,602   $3,558,509   $24,388,168   $42,985,279 

 

 

The following sets forth statements of operations by segment for the three-months ended March 31, 2023:

 

   Broker
Dealer &
Intellectual
Property
Service		   Technology
Development		   Other   Consolidated 
Operating income:                    
Unrealized gain on investment securities, net (from our licensed broker dealer) (Notes 1 and 2)  $54,779   $-   $-   $54,779 
Other operating income   3,053    59,159    -    62,212 
Total operating income, net   57,832    59,159    -    116,991 
                     
Operating costs:                    
General and administrative costs:                    
Compensation   546,801    31,536    293,690    872,027 
Operating expense, related party   258,453    -    43,249    301,702 
Professional fees   165,812    181,707    257,143    604,662 
Information technology   121,876    9,826    15,705    147,407 
Clearing and other charges   10,754    -    -    10,754 
General and administrative-other   108,993    45,734    149,352    304,079 
General and administrative costs   1,212,689    268,803    759,139    2,240,631 
Research and development costs   -    31,592    -    31,592 
Total operating costs   1,212,689    300,395    759,139    2,272,223 
Net operating loss   (1,154,857)   (241,236)   (759,139)   (2,155,232)
Other income:                    
Interest income   28,362    86    158,843    187,291 
Loss before income taxes   (1,126,495)   (241,150)   (600,296)   (1,967,941)
Income tax expense   -    -    -    - 
Net loss   (1,126,495)   (241,150)   (600,296)   (1,967,941)
Less net loss attributable to non-controlling interests   -    (94,193)   -    (94,193)
Net loss attributable to MDB Capital Holdings, LLC  $(1,126,495)  $(146,957)  $(600,296)  $(1,873,748)