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Segment Reporting
 6 Months Ended
Jun. 30, 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: a broker dealer and intellectual property service segment and a technology development segment.

 

The broker dealer and intellectual property service segment consists of 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 and client patent portfolio assessment.

 

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 June 30, 2024:

 

Schedule of Long-lived Assets and Total Assets by Segment

ASSETS   Broker
Dealer &
Intellectual
Property
Service		     Technology
Development		     Other     Eliminations     Consolidated  
Long-lived assets   $ 101,803     $ 2,272,147     $ 685,875     $  -     $ 3,059,825  
Total assets   $ 16,608,793     $ 3,988,839     $ 17,107,905     $ -     $ 37,705,537  

 

 

The following sets forth statements of operations by segment for the three-months ended June 30, 2024:

 

Schedule of Statement of Operation by Segment

  

Broker

Dealer &

Intellectual

Property

Service

   Technology Development   Other   Eliminations   Consolidated 
Operating income:                         
Unrealized gain on investment securities, net (from our licensed broker dealer)  $899,544   $-   $-   $-   $899,544 
Fee income   1,303,398                   1,303,398 
Other operating income   85,508    -    -    -    85,508 
Total operating income, net   2,288,450    -    -    -    2,288,450 
                          
Operating costs:                         
General and administrative costs:                         
Compensation   820,017    731,608    3,573,133    -    5,124,758 
Operating expense, related party   273,645    -    31,309    -    304,954 
Professional fees   153,726    289,903    196,991    -    640,620 
Information technology   185,202    9,715    14,479    -    209,396 
Clearing and other charges   226,426    -    -    -    226,426 
General and administrative-other   206,383    59,985    403,263    -    669,631 
General and administrative costs   1,865,399    1,091,211    4,219,175    -    7,175,785 
Research and development costs   -    237,394    -    -    237,394 
Total operating costs   1,865,399    1,328,605    4,219,175    -    7,413,179 
Net operating income (loss)   423,051    (1,328,605)   (4,219,175)   -    (5,124,729)
Other income and expense:                         
Less: interest expense   165,625    31,498         (197,123)   - 
Interest income   144,775    1,716    371,640    (197,123)   321,008 
Income (loss) before income taxes   402,201    (1,358,387)   (3,847,535)   -    (4,803,721)
Income tax expense   -    2,143    -    -    2,143 
Net income (loss)   402,201    (1,360,530)   (3,847,535)   -    (4,805,864)
Less net loss attributable to non-controlling interests   -    (531,423)   -    -    (531,423)
Net loss attributable to MDB Capital Holdings, LLC  $402,201   $(829,107)  $(3,847,535)  $-   $(4,274,441)

 

 

The following sets forth statements of operations by segment for the six-months June 30, 2024:

 

  

Broker

Dealer &

Intellectual

Property

Service

   Technology Development   Other   Eliminations   Consolidated 
Operating income:                         
Unrealized gain on investment securities, net (from our licensed broker dealer)  $152,276   $-   $-   $-   $152,276 
Fee income   1,303,398                   1,303,398 
Other operating income   172,387    -    -    -    172,387 
Total operating income, net   1,628,061    -    -    -    1,628,061 
                          
Operating costs:                         
General and administrative costs:                         
Compensation   1,499,924    1,121,651    7,395,858    -    10,017,433 
Operating expense, related party   517,521    -    107,725    -    625,246 
Professional fees   299,633    546,466    713,610    -    1,559,709 
Information technology   366,116    13,606    35,665    -    415,387 
Clearing and other charges   228,462    -    -    -    228,462 
General and administrative-other   425,319    140,363    773,075    -    1,338,757 
General and administrative costs   3,336,975    1,822,086    9,025,933    -    14,184,994 
Research and development costs   -    514,976    -    -    514,976 
Total operating costs   3,336,975    2,337,062    9,025,933    -    14,699,970 
Net operating income (loss)   (1,708,914)   (2,337,062)   (9,025,933)   -    (13,071,909)
Other income and expense:                         
Less: interest expense   276,250    31,498    -    (307,748)   - 
Interest income   197,234    1,716    767,658    (307,748)   658,860 
Income (loss) before income taxes   (1,787,930)   (2,366,844)   (8,258,275)   -    (12,413,049)
Income tax expense   -    2,143    -    -    2,143 
Net income (loss)   (1,787,930)   (2,368,987)   (8,258,275)   -    (12,415,192)
Less net loss attributable to non-controlling interests   -    (925,326)   -    -    (925,326)
Net loss attributable to MDB Capital Holdings, LLC  $(1,787,930)  $(1,443,661)  $(8,258,275)  $-   $(11,489,866)

 

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 June 30, 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)  $1,429,092   $-   $-   $1,429,092 
Fee income   4,233,120    -    -    4,233,120 
Other operating income   55,549    11,610    -    67,159 
Total operating income, net   5,717,761    11,610    -    5,729,371 
                     
Operating costs:                    
General and administrative costs:                    
Compensation   572,674    138,470    262,573    973,717 
Operating expense, related party   206,288    -    47,663    253,951 
Professional fees   41,617    27,031    108,194    176,842 
Information technology   140,076    (591)   28,657    168,142 
Clearing and other charges   368,924    -    -    368,924 
General and administrative-other   89,872    17,226    144,160    251,258 
Total general and administrative costs   1,419,451    182,136    591,247    2,192,834 
Research and development costs   -    7,567    -    7,567 
Total operating costs   1,419,451    189,703    591,247    2,200,401 
Net operating income (loss)   4,298,310    (178,093)   (591,247)   3,528,970 
Other income:                    
Interest income   19,519    14    165,355    184,888 
Net income (loss) before income taxes   4,317,829    (178,079)   (425,892)   3,713,858 
Income taxes   320,584    -    -    320,584 
Net income (loss)   3,997,245    (178,079)   (425,892)   3,393,274 
Less net loss attributable to non-controlling interests   -    (69,585)   -    (69,585)
Net income (loss) attributable to MDB Capital Holdings, LLC  $3,997,245   $(108,494)  $(425,892)  $3,462,859 

 

 

The following sets forth statements of operations by segment for the six-months ended June 30, 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)  $1,483,871   $-   $-   $1,483,871 
Fee income   4,233,120    -    -    4,233,120 
Other operating income   58,602    70,769    -    129,371 
Total operating income, net   5,775,593    70,769    -    5,846,362 
                     
Operating costs:                    
General and administrative costs:                    
Compensation   1,119,475    170,006    556,263    1,845,744 
Operating expense, related party   464,741    -    90,912    555,653 
Professional fees   207,429    208,738    365,337    781,504 
Information technology   261,952    9,235    44,362    315,549 
Clearing and other charges   379,678    -    -    379,678 
General and administrative-other   198,865    62,960    293,512    555,337 
Total general and administrative costs   2,632,140    450,939    1,350,386    4,433,465 
Research and development costs   -    39,159    -    39,159 
Total operating costs   2,632,140    490,098    1,350,386    4,472,624 
Net operating income (loss)   3,143,453    (419,329)   (1,350,386)   1,373,738 
Other income:                    
Interest income   47,881    100    324,198    372,179 
Net income (loss) before income taxes   3,191,334    (419,229)   (1,026,188)   1,745,917 
Income taxes   320,584    -    -    320,584 
Net income (loss)   2,870,750    (419,229)   (1,026,188)   1,425,333 
Less net loss attributable to non-controlling interests   -    (163,778)   -    (163,778)
Net income (loss) attributable to MDB Capital Holdings, LLC  $2,870,750   $(255,451)  $(1,026,188)  $1,589,111