We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Siebert Financial Corporation | NASDAQ:SIEB | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1.98 | 1.93 | 2.08 | 0 | 01:00:00 |
|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
||
|
|
||
|
For the quarterly period ended
|
September 30, 2020
|
|
|
|
||
OR
|
|||
|
|||
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
||
|
|
||
|
For the transition period from ____________________________ to __________________________
|
||
|
|
||
|
Commission file number
|
|
0-5703
|
Siebert Financial Corp.
|
(Exact Name of Registrant as Specified in its Charter)
|
New York
|
|
11-1796714
|
(State or Other Jurisdiction of Incorporation or Organization)
|
|
(I.R.S. Employer Identification No.)
|
120 Wall Street, New York, NY 10005
|
(Address of Principal Executive Offices) (Zip Code)
|
(212) 644-2400
|
(Registrant’s Telephone Number, Including Area Code)
|
|
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock - $0.01 par value
|
SIEB
|
The Nasdaq Capital Market
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
Non-accelerated filer ☒
|
Smaller reporting company ☒
|
|
Emerging growth company ☐
|
September 30, 2020
|
December 31, 2019*
|
|||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$
|
4,536,000
|
$
|
4,670,000
|
||||
Cash and securities segregated for regulatory purposes
|
263,980,000
|
224,924,000
|
||||||
Receivables from customers
|
91,842,000
|
86,331,000
|
||||||
Receivables from broker-dealers and clearing organizations
|
3,312,000
|
3,524,000
|
||||||
Other receivables
|
873,000
|
762,000
|
||||||
Prepaid expenses and other assets
|
1,444,000
|
970,000
|
||||||
Securities borrowed
|
283,757,000
|
193,529,000
|
||||||
Securities owned, at fair value
|
3,480,000
|
3,018,000
|
||||||
Total Current assets
|
653,224,000
|
517,728,000
|
||||||
Deposits with broker-dealers and clearing organizations
|
5,094,000
|
4,951,000
|
||||||
Prepaid service contract – non-current
|
1,890,000
|
—
|
||||||
Furniture, equipment and leasehold improvements, net
|
850,000
|
1,150,000
|
||||||
Software, net
|
1,503,000
|
1,888,000
|
||||||
Lease right-of-use assets
|
2,813,000
|
3,951,000
|
||||||
Deferred tax assets
|
5,239,000
|
5,388,000
|
||||||
Intangible assets, net
|
850,000
|
1,022,000
|
||||||
Goodwill
|
1,989,000
|
1,989,000
|
||||||
Total Assets
|
$
|
673,452,000
|
$
|
538,067,000
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Liabilities
|
||||||||
Current liabilities
|
||||||||
Payables to customers
|
$
|
342,156,000
|
$
|
308,091,000
|
||||
Payables to non-customers
|
9,346,000
|
8,063,000
|
||||||
Drafts payable
|
1,635,000
|
2,834,000
|
||||||
Payables to broker-dealers and clearing organizations
|
356,000
|
523,000
|
||||||
Accounts payable and accrued liabilities
|
2,754,000
|
2,443,000
|
||||||
Securities loaned
|
266,777,000
|
170,443,000
|
||||||
Securities sold, not yet purchased, at fair value
|
25,000
|
116,000
|
||||||
Interest payable
|
—
|
10,000
|
||||||
Current portion of notes payable - related party
|
3,000,000
|
8,000,000
|
||||||
Current portion of lease liabilities
|
1,633,000
|
2,227,000
|
||||||
Current portion of long-term debt
|
997,000
|
—
|
||||||
Total Current liabilities
|
628,679,000
|
502,750,000
|
||||||
Lease liabilities, less current portion
|
1,548,000
|
2,182,000
|
||||||
Notes payable – related party, less current portion
|
3,000,000
|
—
|
||||||
Long-term debt, less current portion
|
3,907,000
|
—
|
||||||
Total Liabilities
|
637,134,000
|
504,932,000
|
||||||
Commitments and Contingencies
|
||||||||
Stockholders’ equity
|
||||||||
Common stock, $.01 par value; 100 million shares authorized; 30,653,710 and 30,459,804 shares
issued and outstanding as of September 30, 2020 and December 31, 2019, respectively**
|
306,000
|
304,000
|
||||||
Additional paid-in capital
|
21,022,000
|
19,897,000
|
||||||
Retained earnings
|
14,990,000
|
12,934,000
|
||||||
Total Stockholders’ equity
|
36,318,000
|
33,135,000
|
||||||
Total Liabilities and stockholders' equity
|
$
|
673,452,000
|
$
|
538,067,000
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Revenue
|
||||||||||||||||
Commissions and fees
|
$
|
4,679,000
|
$
|
2,273,000
|
$
|
15,149,000
|
$
|
7,132,000
|
||||||||
Margin interest, marketing and distribution fees
|
2,311,000
|
3,912,000
|
7,730,000
|
11,161,000
|
||||||||||||
Principal transactions
|
2,342,000
|
2,327,000
|
8,126,000
|
6,138,000
|
||||||||||||
Interest income
|
915,000
|
1,061,000
|
3,155,000
|
3,417,000
|
||||||||||||
Market making
|
423,000
|
330,000
|
1,508,000
|
1,303,000
|
||||||||||||
Stock borrow / stock loan
|
1,267,000
|
349,000
|
2,482,000
|
1,353,000
|
||||||||||||
Advisory fees
|
305,000
|
211,000
|
810,000
|
572,000
|
||||||||||||
Other income
|
333,000
|
290,000
|
1,035,000
|
633,000
|
||||||||||||
Total Revenue
|
12,575,000
|
10,753,000
|
39,995,000
|
31,709,000
|
||||||||||||
Expenses
|
||||||||||||||||
Employee compensation and benefits
|
6,584,000
|
4,809,000
|
20,489,000
|
13,812,000
|
||||||||||||
Clearing fees, including execution costs
|
1,270,000
|
798,000
|
3,907,000
|
2,325,000
|
||||||||||||
Technology and communications
|
1,322,000
|
441,000
|
3,256,000
|
1,264,000
|
||||||||||||
Other general and administrative
|
455,000
|
868,000
|
1,710,000
|
2,787,000
|
||||||||||||
Data processing
|
784,000
|
527,000
|
2,387,000
|
1,487,000
|
||||||||||||
Rent and occupancy
|
694,000
|
630,000
|
2,119,000
|
1,754,000
|
||||||||||||
Professional fees
|
760,000
|
783,000
|
2,159,000
|
2,568,000
|
||||||||||||
Depreciation and amortization
|
368,000
|
244,000
|
1,193,000
|
689,000
|
||||||||||||
Referral fees
|
154,000
|
—
|
427,000
|
—
|
||||||||||||
Interest expense
|
89,000
|
31,000
|
253,000
|
84,000
|
||||||||||||
Total Expenses
|
12,480,000
|
9,131,000
|
37,900,000
|
26,770,000
|
||||||||||||
Income before provision (benefit) for (from) income taxes
|
95,000
|
1,622,000
|
2,095,000
|
4,939,000
|
||||||||||||
Provision (benefit) for (from) income taxes
|
(486,000
|
)
|
349,000
|
39,000
|
1,365,000
|
|||||||||||
Net income
|
$
|
581,000
|
$
|
1,273,000
|
$
|
2,056,000
|
$
|
3,574,000
|
||||||||
Net income per share of common stock
|
||||||||||||||||
Basic and diluted
|
$
|
0.02
|
$
|
0.04
|
$
|
0.07
|
$
|
0.12
|
||||||||
Weighted average shares outstanding
|
||||||||||||||||
Basic and diluted
|
30,653,710
|
30,455,962
|
30,565,822
|
30,455,962
|
Number of
Shares Issued
|
$.01 Par
Value
|
Additional
Paid-In Capital
|
Retained
Earnings
|
Total
|
||||||||||||||||
Balance – January 1, 2020
|
27,157,188
|
$
|
271,000
|
$
|
7,641,000
|
$
|
12,869,000
|
$
|
20,781,000
|
|||||||||||
Shares issued for StockCross purchase
|
3,302,616
|
33,000
|
12,256,000
|
65,000
|
12,354,000
|
|||||||||||||||
Net income
|
—
|
—
|
—
|
976,000
|
976,000
|
|||||||||||||||
Balance – March 31, 2020
|
30,459,804
|
$
|
304,000
|
$
|
19,897,000
|
$
|
13,910,000
|
$
|
34,111,000
|
|||||||||||
Shares issued for payment of professional services
|
193,906
|
2,000
|
1,125,000
|
—
|
1,127,000
|
|||||||||||||||
Net income
|
—
|
—
|
—
|
499,000
|
499,000
|
|||||||||||||||
Balance – June 30, 2020
|
30,653,710
|
$
|
306,000
|
$
|
21,022,000
|
$
|
14,409,000
|
$
|
35,737,000
|
|||||||||||
Net income
|
—
|
—
|
—
|
581,000
|
581,000
|
|||||||||||||||
Balance – September 30, 2020
|
30,653,710
|
$
|
306,000
|
$
|
21,022,000
|
$
|
14,990,000
|
$
|
36,318,000
|
Number of
Shares Issued
|
$.01 Par
Value
|
Additional
Paid-In Capital
|
Retained
Earnings
|
Total
|
||||||||||||||||
Balance – January 1, 2019
|
27,157,188
|
$
|
271,000
|
$
|
7,641,000
|
$
|
9,262,000
|
$
|
17,174,000
|
|||||||||||
Shares issued for StockCross purchase
|
3,302,616
|
33,000
|
14,037,000
|
—
|
14,070,000
|
|||||||||||||||
Net income
|
—
|
—
|
—
|
1,224,000
|
1,224,000
|
|||||||||||||||
Balance – March 31, 2019
|
30,459,804
|
$
|
304,000
|
$
|
21,678,000
|
$
|
10,486,000
|
$
|
32,468,000
|
|||||||||||
Net income
|
—
|
—
|
—
|
1,079,000
|
1,079,000
|
|||||||||||||||
Balance – June 30, 2019
|
30,459,804
|
$
|
304,000
|
$
|
21,678,000
|
$
|
11,565,000
|
$
|
33,547,000
|
|||||||||||
Return of capital distribution
|
—
|
—
|
(1,600,000
|
)
|
—
|
(1,600,000
|
)
|
|||||||||||||
Net income
|
—
|
—
|
—
|
1,273,000
|
1,273,000
|
|||||||||||||||
Balance – September 30, 2019
|
30,459,804
|
$
|
304,000
|
$
|
20,078,000
|
$
|
12,838,000
|
$
|
33,220,000
|
Nine Months Ended
September 30,
|
||||||||
2020
|
2019
|
|||||||
Cash Flows From Operating Activities
|
||||||||
Net income
|
$
|
2,056,000
|
$
|
3,574,000
|
||||
Adjustments to reconcile net income to net cash provided by / (used in) operating activities:
|
||||||||
Deferred income tax expense
|
148,000
|
672,000
|
||||||
Depreciation and amortization
|
1,193,000
|
689,000
|
||||||
Changes in
|
||||||||
Receivables from customers
|
(5,511,000
|
)
|
(15,339,000
|
)
|
||||
Receivables from non-customers
|
—
|
(103,000
|
)
|
|||||
Receivables from and deposits with broker-dealers and clearing organizations
|
69,000
|
(14,000
|
)
|
|||||
Securities borrowed
|
(90,228,000
|
)
|
43,382,000
|
|||||
Securities owned, at fair value
|
(462,000
|
)
|
1,671,000
|
|||||
Prepaid expenses and other assets
|
(586,000
|
)
|
167,000
|
|||||
Prepaid service contract – non-current
|
(763,000
|
)
|
—
|
|||||
Payables to customers
|
34,065,000
|
(3,541,000
|
)
|
|||||
Payables to non-customers
|
1,283,000
|
(3,847,000
|
)
|
|||||
Drafts payable
|
(1,199,000
|
)
|
234,000
|
|||||
Payables to broker-dealers and clearing organizations
|
(167,000
|
)
|
1,004,000
|
|||||
Accounts payable and accrued liabilities
|
311,000
|
(143,000
|
)
|
|||||
Securities loaned
|
96,334,000
|
(35,905,000
|
)
|
|||||
Securities sold, not yet purchased, at fair value
|
(91,000
|
)
|
(4,000
|
)
|
||||
Interest payable
|
(10,000
|
)
|
—
|
|||||
Lease liabilities
|
(90,000
|
)
|
334,000
|
|||||
Taxes payable
|
—
|
14,000
|
||||||
Other liabilities
|
—
|
91,000
|
||||||
Net cash provided by / (used in) operating activities
|
36,352,000
|
(7,064,000
|
)
|
|||||
Cash Flows From Investing Activities
|
||||||||
Escrow deposit
|
—
|
(2,000,000
|
)
|
|||||
Purchase of furniture, equipment, and leasehold improvements
|
—
|
(783,000
|
)
|
|||||
Purchase of software
|
(334,000
|
)
|
(1,086,000
|
)
|
||||
Net cash used in investing activities
|
(334,000
|
)
|
(3,869,000
|
)
|
||||
Cash Flows From Financing Activities
|
||||||||
Notes payable – related party
|
(2,000,000
|
)
|
2,000,000
|
|||||
Long-term debt
|
4,904,000
|
—
|
||||||
Purchase of StockCross common stock
|
—
|
(3,425,000
|
)
|
|||||
Return of capital distribution - StockCross
|
—
|
(1,600,000
|
)
|
|||||
Treasury stock sales - StockCross
|
—
|
172,000
|
||||||
Net cash provided by / (used in) financing activities
|
2,904,000
|
(2,853,000
|
)
|
|||||
Net increase / (decrease) in cash and cash equivalents, and cash and securities segregated for regulatory purposes
|
38,922,000
|
(13,786,000
|
)
|
|||||
Cash and cash equivalents, and cash and securities segregated for regulatory purposes - beginning of year
|
229,594,000
|
214,038,000
|
||||||
Cash and cash equivalents, and cash and securities segregated for regulatory purposes - end of period
|
$
|
268,516,000
|
$
|
200,252,000
|
||||
Cash and cash equivalents - end of period
|
$
|
4,536,000
|
$
|
5,883,000
|
||||
Cash and securities segregated for regulatory purposes - end of period
|
263,980,000
|
194,369,000
|
||||||
Cash and cash equivalents, and cash and securities segregated for regulatory purposes - end of period
|
$
|
268,516,000
|
$
|
200,252,000
|
||||
Supplemental cash flow information
|
||||||||
Cash paid during the period for income taxes
|
$
|
133,000
|
$
|
635,000
|
||||
Cash paid during the period for interest
|
$
|
263,000
|
$
|
84,000
|
||||
Non-cash investing and financing activities
|
||||||||
Shares issued for payment of professional services
|
$
|
1,127,000
|
$
|
—
|
Historical
Carrying Value
|
||||
Assets acquired
|
||||
Cash and cash equivalents
|
$
|
1,588,000
|
||
Cash and securities segregated for regulatory purposes
|
224,814,000
|
|||
Receivables from customers
|
86,331,000
|
|||
Receivables from broker-dealers and clearing organizations
|
3,105,000
|
|||
Other receivables
|
627,000
|
|||
Prepaid expenses and other assets
|
346,000
|
|||
Securities borrowed
|
193,529,000
|
|||
Securities owned, at fair value
|
3,018,000
|
|||
Furniture, equipment and leasehold improvements, net
|
19,000
|
|||
Lease right-of-use assets
|
1,141,000
|
|||
Deferred tax assets
|
407,000
|
|||
Total Assets acquired
|
514,925,000
|
|||
Liabilities assumed
|
||||
Payables to customers
|
308,091,000
|
|||
Payables to non-customers
|
9,151,000
|
|||
Drafts payable
|
2,834,000
|
|||
Payables to broker-dealers and clearing organizations
|
1,406,000
|
|||
Accounts payable and accrued liabilities
|
963,000
|
|||
Securities loaned
|
170,443,000
|
|||
Securities sold, not yet purchased, at fair value
|
28,000
|
|||
Notes payable – related party
|
5,000,000
|
|||
Lease liabilities
|
1,295,000
|
|||
Total Liabilities assumed
|
499,211,000
|
|||
|
||||
Net Assets acquired
|
$
|
15,714,000
|
Three Months Ended September 30, 2019
|
||||||||||||||||
Siebert
|
StockCross
|
Pro Forma
Adjustments
|
Total Combined
Siebert
|
|||||||||||||
Revenue
|
||||||||||||||||
Commissions and fees
|
$
|
1,925,000
|
$
|
348,000
|
$
|
—
|
$
|
2,273,000
|
||||||||
Margin interest, marketing and distribution fees
|
2,944,000
|
968,000
|
—
|
3,912,000
|
||||||||||||
Principal transactions
|
2,041,000
|
286,000
|
—
|
2,327,000
|
||||||||||||
Interest income
|
23,000
|
1,038,000
|
—
|
1,061,000
|
||||||||||||
Market making
|
—
|
330,000
|
—
|
330,000
|
||||||||||||
Stock borrow / stock loan
|
—
|
349,000
|
—
|
349,000
|
||||||||||||
Advisory fees
|
211,000
|
—
|
—
|
211,000
|
||||||||||||
Other income
|
—
|
351,000
|
(61,000
|
)
|
290,000
|
|||||||||||
Total Revenue
|
7,144,000
|
3,670,000
|
(61,000
|
)
|
10,753,000
|
|||||||||||
Expenses
|
||||||||||||||||
Employee compensation and benefits
|
3,157,000
|
1,652,000
|
—
|
4,809,000
|
||||||||||||
Clearing fees, including execution costs
|
617,000
|
242,000
|
(61,000
|
)
|
798,000
|
|||||||||||
Technology and communications
|
291,000
|
150,000
|
—
|
441,000
|
||||||||||||
Other general and administrative
|
589,000
|
279,000
|
—
|
868,000
|
||||||||||||
Data processing
|
—
|
527,000
|
—
|
527,000
|
||||||||||||
Rent and occupancy
|
380,000
|
250,000
|
—
|
630,000
|
||||||||||||
Professional fees
|
439,000
|
344,000
|
—
|
783,000
|
||||||||||||
Depreciation and amortization
|
244,000
|
—
|
—
|
244,000
|
||||||||||||
Interest expense
|
—
|
31,000
|
—
|
31,000
|
||||||||||||
Total Expenses
|
5,717,000
|
3,475,000
|
(61,000
|
)
|
9,131,000
|
|||||||||||
Earnings of equity method investment in related party
|
30,000
|
—
|
(30,000
|
)
|
—
|
|||||||||||
Income before provision (benefit) for (from) income taxes
|
1,457,000
|
195,000
|
(30,000
|
)
|
1,622,000
|
|||||||||||
Provision (benefit) for (from) income taxes
|
353,000
|
4,000
|
(8,000
|
)
|
349,000
|
|||||||||||
Net income / (loss)
|
$
|
1,104,000
|
$
|
191,000
|
$
|
(22,000
|
)
|
$
|
1,273,000
|
|||||||
Net income per share of common stock
|
||||||||||||||||
Basic and diluted
|
$
|
0.04
|
$
|
0.03
|
$
|
0.04
|
||||||||||
Weighted average shares outstanding
|
||||||||||||||||
Basic and diluted
|
27,157,188
|
6,152,500
|
||||||||||||||
Pro forma shares used to compute net income per share
|
30,455,962
|
Nine Months Ended September 30, 2019
|
||||||||||||||||
Siebert
|
StockCross
|
Pro Forma
Adjustments
|
Total Combined
Siebert
|
|||||||||||||
Revenue
|
||||||||||||||||
Commissions and fees
|
$
|
6,030,000
|
$
|
1,102,000
|
$
|
—
|
$
|
7,132,000
|
||||||||
Margin interest, marketing and distribution fees
|
8,499,000
|
2,662,000
|
—
|
11,161,000
|
||||||||||||
Principal transactions
|
5,479,000
|
659,000
|
—
|
6,138,000
|
||||||||||||
Interest income
|
54,000
|
3,363,000
|
—
|
3,417,000
|
||||||||||||
Market making
|
—
|
1,303,000
|
—
|
1,303,000
|
||||||||||||
Stock borrow / stock loan
|
—
|
1,353,000
|
—
|
1,353,000
|
||||||||||||
Advisory fees
|
572,000
|
—
|
—
|
572,000
|
||||||||||||
Other income
|
—
|
816,000
|
(183,000
|
)
|
633,000
|
|||||||||||
Total Revenue
|
20,634,000
|
11,258,000
|
(183,000
|
)
|
31,709,000
|
|||||||||||
Expenses
|
||||||||||||||||
Employee compensation and benefits
|
8,882,000
|
4,930,000
|
—
|
13,812,000
|
||||||||||||
Clearing fees, including execution costs
|
1,849,000
|
659,000
|
(183,000
|
)
|
2,325,000
|
|||||||||||
Technology and communications
|
800,000
|
464,000
|
—
|
1,264,000
|
||||||||||||
Other general and administrative
|
1,861,000
|
926,000
|
—
|
2,787,000
|
||||||||||||
Data processing
|
—
|
1,487,000
|
—
|
1,487,000
|
||||||||||||
Rent and occupancy
|
995,000
|
759,000
|
—
|
1,754,000
|
||||||||||||
Professional fees
|
1,388,000
|
1,180,000
|
—
|
2,568,000
|
||||||||||||
Depreciation and amortization
|
670,000
|
19,000
|
—
|
689,000
|
||||||||||||
Interest expense
|
—
|
84,000
|
—
|
84,000
|
||||||||||||
Total Expenses
|
16,445,000
|
10,508,000
|
(183,000
|
)
|
26,770,000
|
|||||||||||
Earnings of equity method investment in related party
|
84,000
|
—
|
(84,000
|
)
|
—
|
|||||||||||
Income before provision (benefit) for (from) income taxes
|
4,273,000
|
750,000
|
(84,000
|
)
|
4,939,000
|
|||||||||||
Provision (benefit) for (from) income taxes
|
1,171,000
|
218,000
|
(24,000
|
)
|
1,365,000
|
|||||||||||
Net income / (loss)
|
$
|
3,102,000
|
$
|
532,000
|
$
|
(60,000
|
)
|
$
|
3,574,000
|
|||||||
Net income per share of common stock
|
||||||||||||||||
Basic and diluted
|
$
|
0.11
|
$
|
0.09
|
$
|
0.12
|
||||||||||
Weighted average shares outstanding
|
||||||||||||||||
Basic and diluted
|
27,157,188
|
6,152,500
|
||||||||||||||
Pro forma shares used to compute net income per share
|
30,455,962
|
As of December 31, 2019
|
||||||||||||||||
Siebert
|
StockCross
|
Pro Forma
Adjustments
(unaudited)
|
Total Combined Siebert
(unaudited)
|
|||||||||||||
ASSETS
|
||||||||||||||||
Cash and cash equivalents
|
$
|
3,082,000
|
$
|
1,588,000
|
$
|
—
|
$
|
4,670,000
|
||||||||
Cash and securities segregated for regulatory purposes
|
110,000
|
224,814,000
|
—
|
224,924,000
|
||||||||||||
Receivables from customers
|
—
|
86,331,000
|
—
|
86,331,000
|
||||||||||||
Receivables from broker-dealers and clearing organizations
|
3,067,000
|
1,265,000
|
(808,000
|
)
|
3,524,000
|
|||||||||||
Receivables from related party
|
1,000,000
|
—
|
(1,000,000
|
)
|
—
|
|||||||||||
Other receivables
|
223,000
|
627,000
|
(88,000
|
)
|
762,000
|
|||||||||||
Prepaid expenses and other assets
|
624,000
|
346,000
|
—
|
970,000
|
||||||||||||
Securities borrowed
|
—
|
193,529,000
|
—
|
193,529,000
|
||||||||||||
Securities owned, at fair value
|
—
|
3,018,000
|
—
|
3,018,000
|
||||||||||||
Total Current assets
|
8,106,000
|
511,518,000
|
(1,896,000
|
)
|
517,728,000
|
|||||||||||
Deposits with broker-dealers and clearing organizations
|
3,186,000
|
1,840,000
|
(75,000
|
)
|
4,951,000
|
|||||||||||
Furniture, equipment and leasehold improvements, net
|
1,131,000
|
19,000
|
—
|
1,150,000
|
||||||||||||
Software, net
|
1,888,000
|
—
|
—
|
1,888,000
|
||||||||||||
Lease right-of-use assets
|
2,810,000
|
1,141,000
|
—
|
3,951,000
|
||||||||||||
Equity method investment in related party
|
3,360,000
|
—
|
(3,360,000
|
)
|
—
|
|||||||||||
Deferred tax assets
|
4,981,000
|
407,000
|
—
|
5,388,000
|
||||||||||||
Intangible assets, net
|
1,022,000
|
—
|
—
|
1,022,000
|
||||||||||||
Goodwill
|
1,989,000
|
—
|
—
|
1,989,000
|
||||||||||||
Total Assets
|
$
|
28,473,000
|
$
|
514,925,000
|
$
|
(5,331,000
|
)
|
$
|
538,067,000
|
|||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||||||
Payables to customers
|
$
|
—
|
$
|
308,091,000
|
$
|
—
|
$
|
308,091,000
|
||||||||
Payables to non-customers
|
—
|
9,151,000
|
(1,088,000
|
)
|
8,063,000
|
|||||||||||
Drafts payable
|
—
|
2,834,000
|
—
|
2,834,000
|
||||||||||||
Payables to broker-dealers and clearing organizations
|
—
|
1,406,000
|
(883,000
|
)
|
523,000
|
|||||||||||
Payables to related parties
|
7,000
|
—
|
(7,000
|
)
|
—
|
|||||||||||
Accounts payable and accrued liabilities
|
1,473,000
|
963,000
|
7,000
|
2,443,000
|
||||||||||||
Securities loaned
|
—
|
170,443,000
|
—
|
170,443,000
|
||||||||||||
Securities sold, not yet purchased, at fair value
|
88,000
|
28,000
|
—
|
116,000
|
||||||||||||
Interest payable
|
10,000
|
—
|
—
|
10,000
|
||||||||||||
Current portion of notes payable - related party
|
3,000,000
|
5,000,000
|
—
|
8,000,000
|
||||||||||||
Current portion of lease liabilities
|
1,291,000
|
936,000
|
—
|
2,227,000
|
||||||||||||
Total Current liabilities
|
5,869,000
|
498,852,000
|
(1,971,000
|
)
|
502,750,000
|
|||||||||||
Lease liabilities, less current portion
|
1,823,000
|
359,000
|
—
|
2,182,000
|
||||||||||||
Total Liabilities
|
7,692,000
|
499,211,000
|
(1,971,000
|
)
|
504,932,000
|
|||||||||||
Commitments and Contingencies
|
||||||||||||||||
Stockholders’ equity
|
||||||||||||||||
Common stock, $.01 par value
|
271,000
|
10,000
|
23,000
|
304,000
|
||||||||||||
Additional paid-in capital
|
7,641,000
|
12,436,000
|
(180,000
|
)
|
19,897,000
|
|||||||||||
Retained earnings
|
12,869,000
|
3,268,000
|
(3,203,000
|
)
|
12,934,000
|
|||||||||||
Total Stockholders’ equity
|
20,781,000
|
15,714,000
|
(3,360,000
|
)
|
33,135,000
|
|||||||||||
Total Liabilities and stockholders' equity
|
$
|
28,473,000
|
$
|
514,925,000
|
$
|
(5,331,000
|
)
|
$
|
538,067,000
|
Three Months Ended September 30, 2019
|
Nine Months Ended September 30, 2019
|
|||||||
Revenue
|
$
|
14,372,000
|
$
|
41,191,000
|
||||
Operating income
|
$
|
1,905,000
|
$
|
3,693,000
|
||||
Net income
|
$
|
1,577,000
|
$
|
2,407,000
|
As of
September 30, 2020
|
As of
December 31, 2019
|
|||||||
Receivables from and deposits with broker-dealers and clearing organizations
|
||||||||
DTCC / OCC / NSCC
|
$
|
3,678,000
|
$
|
3,059,000
|
||||
Goldman Sachs
|
2,105,000
|
2,841,000
|
||||||
Pershing Capital
|
1,279,000
|
1,192,000
|
||||||
NFS
|
1,113,000
|
1,328,000
|
||||||
Securities fail-to-deliver
|
207,000
|
43,000
|
||||||
Globalshares
|
24,000
|
2,000
|
||||||
ICBC
|
—
|
10,000
|
||||||
Total Receivables from and deposits with broker-dealers and clearing organizations
|
$
|
8,406,000
|
$
|
8,475,000
|
||||
Payables to broker-dealers and clearing organizations
|
||||||||
Securities fail-to-receive
|
$
|
356,000
|
$
|
523,000
|
||||
Total Payables to broker-dealers and clearing organizations
|
$
|
356,000
|
$
|
523,000
|
As of September 30, 2020
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
||||||||||||||||
Certificates of deposit
|
$
|
—
|
$
|
142,000
|
$
|
—
|
$
|
142,000
|
||||||||
Securities owned, at fair value
|
||||||||||||||||
U.S. government securities*
|
$
|
2,028,000
|
$
|
—
|
$
|
—
|
$
|
2,028,000
|
||||||||
Certificates of deposit
|
—
|
91,000
|
—
|
91,000
|
||||||||||||
Corporate bonds
|
—
|
120,000
|
—
|
120,000
|
||||||||||||
Equity securities
|
765,000
|
343,000
|
—
|
1,108,000
|
||||||||||||
Mutual funds
|
133,000
|
—
|
—
|
133,000
|
||||||||||||
Total Securities owned, at fair value
|
$
|
2,926,000
|
$
|
554,000
|
$
|
—
|
$
|
3,480,000
|
||||||||
Liabilities
|
||||||||||||||||
Securities sold, not yet purchased, at fair value
|
||||||||||||||||
Equity securities
|
$
|
—
|
$
|
25,000
|
$
|
—
|
$
|
25,000
|
||||||||
Total Securities sold, not yet purchased, at fair value
|
$
|
—
|
$
|
25,000
|
$
|
—
|
$
|
25,000
|
As of December 31, 2019
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
||||||||||||||||
Certificates of deposit
|
$
|
—
|
$
|
142,000
|
$
|
—
|
$
|
142,000
|
||||||||
Segregated securities
|
||||||||||||||||
U.S. government securities
|
$
|
1,311,000
|
—
|
—
|
$
|
1,311,000
|
||||||||||
Securities owned, at fair value
|
||||||||||||||||
U.S. government securities
|
$
|
2,007,000
|
$
|
—
|
$
|
—
|
$
|
2,007,000
|
||||||||
Corporate bonds
|
—
|
25,000
|
—
|
25,000
|
||||||||||||
Equity securities
|
453,000
|
245,000
|
288,000
|
986,000
|
||||||||||||
Total Securities owned, at fair value
|
$
|
2,460,000
|
$
|
270,000
|
$
|
288,000
|
$
|
3,018,000
|
||||||||
Liabilities
|
||||||||||||||||
Securities sold, not yet purchased, at fair value
|
||||||||||||||||
Equity securities
|
$
|
88,000
|
$
|
28,000
|
$
|
—
|
$
|
116,000
|
||||||||
Total Securities sold, not yet purchased, at fair value
|
$
|
88,000
|
$
|
28,000
|
$
|
—
|
$
|
116,000
|
Changes in Level 3 Equity Assets | ||||||
Nine Months Ended September 30, 2020 | ||||||
Amount
|
Valuation Technique
|
Reason for Change
|
||||
Balance – January 1, 2020
|
$
|
288,000
|
Liquidation value based on valuation report
|
|||
Transfers out of level 3
|
(288,000
|
)
|
Sale of equity security
|
|||
Balance – September 30, 2020
|
$
|
—
|
As of
September 30, 2020
|
As of
December 31, 2019
|
|||||||
Assets
|
||||||||
Lease right-of-use assets
|
$
|
2,813,000
|
$
|
3,951,000
|
||||
Liabilities
|
||||||||
Lease liabilities
|
$
|
3,181,000
|
$
|
4,409,000
|
Lease Term and Discount Rate
|
As of
September 30, 2020
|
|||
Weighted average remaining lease term – operating leases (in years)
|
2.3
|
|||
Weighted average discount rate – operating leases
|
5.0
|
%
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Operating lease cost
|
$
|
609,000
|
$
|
509,000
|
$
|
1,755,000
|
$
|
1,268,000
|
||||||||
Short-term lease cost
|
20,000
|
81,000
|
83,000
|
321,000
|
||||||||||||
Variable lease cost
|
65,000
|
40,000
|
281,000
|
165,000
|
||||||||||||
Sublease income
|
—
|
—
|
—
|
—
|
||||||||||||
Total Rent and occupancy
|
$
|
694,000
|
$
|
630,000
|
$
|
2,119,000
|
$
|
1,754,000
|
||||||||
Cash paid for amounts included in the measurement of lease liabilities
|
||||||||||||||||
Operating cash flows from operating leases
|
$
|
614,000
|
$
|
512,000
|
$
|
1,845,000
|
$
|
1,338,000
|
||||||||
Lease right-of-use assets obtained in exchange for new lease liabilities
|
||||||||||||||||
Operating leases
|
$
|
278,000
|
$
|
—
|
$
|
2,353,000
|
$
|
4,943,000
|
Year
|
Amount
|
|||
2020
|
$
|
606,000
|
||
2021
|
1,403,000
|
|||
2022
|
755,000
|
|||
2023
|
543,000
|
|||
2024
|
56,000
|
|||
Remaining balance of lease payments
|
3,363,000
|
|||
Difference between undiscounted cash flows and
discounted cash flows
|
182,000
|
|||
Lease liabilities
|
$
|
3,181,000
|
Description
|
Issuance Date
|
Face Amount
|
|||
4% due December 2, 2020
|
December 2, 2019
|
$
|
3,000,000
|
||
Subordinated to MSCO*
|
|||||
4% due November 30, 2021**
|
November 30, 2018
|
$
|
3,000,000
|
||
Total Notes payable – related party
|
$
|
6,000,000
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||||
Revenue Category
|
2020
|
2019
|
2020
|
2019
|
Timing of Recognition
|
||||||||||||
Trading Execution and Clearing Services
|
|||||||||||||||||
Commissions and fees
|
$
|
4,679,000
|
$
|
2,273,000
|
$
|
15,149,000
|
$
|
7,132,000
|
Recorded on trade date
|
||||||||
Principal transactions
|
2,342,000
|
2,327,000
|
8,126,000
|
6,138,000
|
Recorded on trade date
|
||||||||||||
Market making
|
423,000
|
330,000
|
1,508,000
|
1,303,000
|
Recorded on trade date
|
||||||||||||
Stock borrow / stock loan
|
1,267,000
|
349,000
|
2,482,000
|
1,353,000
|
Recorded as earned
|
||||||||||||
Advisory fees
|
305,000
|
211,000
|
810,000
|
572,000
|
Recorded as earned
|
||||||||||||
Total Trading Execution and Clearing Services
|
9,016,000
|
5,490,000
|
28,075,000
|
16,498,000
|
|||||||||||||
Other Income
|
|||||||||||||||||
Margin interest, marketing and distribution fees
|
|||||||||||||||||
Margin interest
|
2,130,000
|
3,068,000
|
6,465,000
|
8,755,000
|
Recorded as earned
|
||||||||||||
12b1 fees
|
181,000
|
844,000
|
1,265,000
|
2,406,000
|
Recorded as earned
|
||||||||||||
Total Margin interest, marketing and
distribution fees
|
2,311,000
|
3,912,000
|
7,730,000
|
11,161,000
|
|||||||||||||
Interest income
|
915,000
|
1,061,000
|
3,155,000
|
3,417,000
|
Recorded as earned
|
||||||||||||
Other income
|
333,000
|
290,000
|
1,035,000
|
633,000
|
Recorded as earned
|
||||||||||||
Total Other Income
|
3,559,000
|
5,263,000
|
11,920,000
|
15,211,000
|
|||||||||||||
Total Revenue
|
$
|
12,575,000
|
$
|
10,753,000
|
$
|
39,995,000
|
$
|
31,709,000
|
Revenue Stream
|
Performance Obligation
|
Commissions and fees, Principal transactions, Market making, Stock borrow /
stock loan, Advisory fees
|
Provide financial services to customers and counterparties
|
Margin interest, marketing and distribution fees, Interest income, Other income
|
n / a
|
As of September 30,
|
||||||||
2020
|
2019
|
|||||||
Total assets under management (in billions)
|
$
|
14.5
|
$
|
12.5
|
As of September 30,
|
||||||||
2020
|
2019
|
|||||||
Retail customer net worth (in billions)
|
$
|
13.1
|
$
|
12.5
|
||||
Retail customer margin debit balances (in billions)
|
$
|
0.4
|
$
|
0.4
|
||||
Retail customer credit balances (in billions)
|
$
|
0.6
|
$
|
0.6
|
||||
Retail customer money market fund value (in billions)
|
$
|
0.7
|
$
|
0.6
|
||||
Retail customer accounts
|
110,044
|
105,470
|
•
|
Retail customer net worth represents the total value of securities and cash in the retail customer accounts after deducting margin debits
|
•
|
Retail customer margin debit balances represents credit extended to our customers to finance their purchases against current positions
|
•
|
Retail customer credit balances represents client cash held in brokerage accounts
|
•
|
Retail customer money market fund value represents all retail customers accounts invested in money market funds
|
•
|
Retail customer accounts represents the number of retail customers
|
As of
September 30, 2020
|
||||
Institutional customer net worth (in billions)
|
$
|
1.4
|
•
|
Institutional customer net worth represents the total value of securities and cash in the institutional customer accounts after deducting margin debits and short positions. We did not have institutional
customers until our purchase of WP in December 2019.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Total retail trades
|
112,264
|
75,969
|
353,580
|
230,267
|
||||||||||||
Average commission per retail trade
|
$
|
15.55
|
$
|
17.38
|
$
|
15.32
|
$
|
18.35
|
•
|
Total retail trades represents retail trades that generate commissions
|
•
|
Average commission per retail trade represents the average commission generated for all types of retail customer trades
|
Year
|
Amount
|
|||
2020
|
$
|
606,000
|
||
2021
|
1,403,000
|
|||
2022
|
755,000
|
|||
2023
|
543,000
|
|||
2024
|
56,000
|
|||
Total
|
$
|
3,363,000
|
Exhibit
No.
|
|
Description of Document
|
|
|
|
|
||
|
|
|
|
||
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
SIEBERT FINANCIAL CORP.
|
|
|
|
|
|
By:
|
/s/ Andrew H. Reich
|
|
|
Andrew H. Reich
|
|
|
Executive Vice President, Chief Operating Officer,
Chief Financial Officer, and Secretary
|
|
|
(Principal executive, financial and accounting officer)
|
|
|
|
|
Dated: November 16, 2020
|
1 Year Siebert Financial Chart |
1 Month Siebert Financial Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions