XML 26 R15.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Related Party Transactions
 6 Months Ended
Jun. 30, 2024
Related Party Transactions [Abstract]  
Related Party Transactions

7. Related Party Transactions

 

The principal members of the Company have a controlling interest in MDB Capital, S.A., a company organized and based in Nicaragua that provides outsourced services to the Company and other non-related entities. During the six-months ended June 30, 2024 and 2023, the Company paid $625,246 and $555,653, respectively, which is inclusive of expenses and fees, for contracted labor, recorded against general and administrative expenses.

 

During the six-months ended June 30, 2024, PatentVest, a 100% entity owned by MDB Capital Holdings, LLC, engaged in transactions with ENDRA Life Sciences Inc, a company for which two of our executive officers serve as board members, being Anthony DiGiandomenico, our Chief of Transactions, and Lou Basenese, President of Public Ventures. For the year ended December 31, 2023, there were no revenue recognized between MDB Capital entities and ENDRA. However, costs incurred amounting to $80,995 related to transactions with ENDRA have been deferred.

 

The customer liability account balances include a total of $621,627, which is comprised of funds from executives, board members, and the children of the broker-dealer’s leadership. These funds represent financial assets held by individuals who are closely associated with the broker dealer’s upper management and governance. According to the regulatory definitions of customer and non-customer accounts, these individuals are classified as customers. This classification is significant because it affects how their accounts are treated in terms of reporting, risk management, and compliance with industry standards. The distinction between customer and non-customer accounts is crucial for maintaining transparency and ensuring that all transactions and liabilities are accurately recorded and reported in accordance with applicable regulations. By recognizing these individuals as customers, the broker-dealer ensures that the handling of these accounts is consistent with regulatory expectations and internal policies, thereby safeguarding the integrity of the financial reporting process.