SIEBERT FINANCIAL CORP
For the period ended Mar 31, 2025. Filed May 13, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 13, 2025
SIEB$1.78-2.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0001213900-24-096271
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-13.
0001213900-25-042693
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 123 previous paragraphs and 100 current paragraphs.
57 unchanged; 29 reworded; 13 added; 28 removed; 9 previous and 1 current paragraphs rearranged.
Tables are not compared: 17 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
Investment in Equity Security
Current report
During the three months ended March 31, 2025, Siebert acquired the Investment in Equity Security in connection with a private placement from a private U.S company that subsequently completed an initial public offering. These shares are subject to resale restrictions until they are registered with the SEC or an exemption from such registration requirements becomes available. The date of the registration of such resale is uncertain as of the date of this Report.
Current report
Siebert valued the restricted shares of the Investment in Equity Security using a Finnerty option-pricing model including a discount of approximately 40% which included the lack of marketability and other factors. Refer to Note 4 – Fair Value Measurements for additional details.
Current report
For the three months ended March 31, 2025, Siebert recorded an unrealized gain of approximately $9.2 million in relation to the Investment in Equity Security. However, due to the volatility of the price of the shares, which has declined significantly since March 31, 2025, we are uncertain as to the total unrealized or realized gain or loss that will be recognized from the Investment in Equity Security. Solely for illustrative purposes, on May 7, 2025, the closing share price of the Investment in Equity Security fell to $25.24 per share, compared with $83.51 per share ($50.11 per share after the 40% discount) as of March 31, 2025. Had the Company sold its shares on May 7, 2025, the total gain would have been approximately $3.9 million, instead of the $9.2 million unrealized gain recognized during the three months ended March 31, 2025. Because the decline reflects conditions arising after March 31, 2025, no adjustment has been made to the accompanying financial statements. The potential change in the market value of the Investment in Equity Security may materially impact the results of future periods.
Current report
Interest Rates
Current report
Client Account Metrics– Retail Customers
Current report
Interest, marketing and distribution fees for the three months ended March 31, 2025 were $6,945,000 and decreased by $1,818,000 from the corresponding period in the prior year primarily due to a decline in interest rates and change in customer asset mix.
Current report
The increase in realized and unrealized gain on primarily riskless principal transactions was primarily due to the Company’s Investment in Equity Security. The income related to this investment is included in the “Unrealized gain on investment in equity security” line in the securities table below. Refer to Note 4 – Fair Value Measurement for additional detail.
Current report
Professional fees for the three months ended March 31, 2025 were $1,359,000 and increased by $322,000 from the corresponding period in the prior year primarily due to the establishment of the investment advisory committee.
Current report
BMO Credit Agreement
Current report
On November 22, 2024, MSCO entered into a Credit Agreement (the “BMO Credit Agreement”) with BMO Harris Bank (“BMO Harris”). The BMO Credit Agreement provides for a revolving credit facility of up to $20,000,000. We may use any borrowings under the BMO Credit Agreement to finance NSCC Deposit Requirements (other than an Adequate Assurance Deposit) and withdrawals from a Reserve Account. As part of the agreement, we entered into a Parent Guaranty agreement guaranteeing repayment of any debt issued to MSCO.
Current report
Borrowings under the BMO Credit Agreement bears interest on the outstanding daily balance at a rate of interest per annum equal 2.5% plus the greater of: (a) Term SOFR for such day plus 0.11448% and (b) Federal Funds Target Range – Upper Limit and (c) 0.25%. The annual commitment fee is equal to one half of one percent (0.50%) of the average daily unused portion of the commitment of $20,000,000. The BMO Credit Agreement contains customary affirmative covenants and negative covenants and requires MSCO maintain minimum total regulatory capital of $45,000,000, excess net capital of 20,000,000, assets to total regulatory capital ratio of not more than 5.0 to 1.0, and a minimum liquidity ratio of not less than 1.0.
Current report
Recent Accounting Pronouncements
Removed paragraphs (28)
Previous report
Interest Rate Risk
Previous report
Client Account Metrics
Previous report
Interest, marketing and distribution fees for the three months ended September 30, 2024 were $8,350,000 and increased by $1,156,000 from the corresponding period in the prior year primarily due to an increase in interest income received on U.S. government securities and bank deposits.
Previous report
The increase in realized and unrealized gain on primarily riskless principal transactions was primarily due to strong market conditions. The increase in unrealized gain on our portfolio of U.S. government securities was due to the following. We invested in 1-year treasury bills and 2-year treasury notes in order to enhance our yield on excess 15c3-3 deposits. During 2022, there was an increase in U.S. government securities yields, which created an unrealized loss on our U.S. government securities portfolio. In 2023, we began to record substantially all of the reversal of the unrealized loss resulting in an unrealized gain due to the securities coming closer to maturity. We continually invest in US government securities based on market yields and cash needs.
Previous report
Professional fees for the three months ended September 30, 2024 were $1,464,000 and increased by $485,000 from the corresponding period in the prior year primarily due to an increase in legal and accounting fees offset by an decrease in consulting services.
Previous report
Interest expense for the three months ended September 30, 2024 was $72,000 and increased by $32,000 from the corresponding period in the prior year, primarily due to the interest related to an agreement with Kakaopay in 2024.
Previous report
Revenue
Previous report
Commissions and fees for the nine months ended September 30, 2024 were $7,173,000 and increased by $1,566,000 from the corresponding period in the prior year, primarily due to strong market conditions.
Previous report
Interest, marketing and distribution fees for the nine months ended September 30, 2024 were $24,948,000 and increased by $3,365,000 from the corresponding period in the prior year primarily due to an increase in interest income received on U.S. government securities and bank deposits.
Previous report
Principal transactions and proprietary trading for the nine months ended September 30, 2024 were $11,277,000 and increased by $2,070,000 from the corresponding period in the prior year, primarily due to the factors discussed below.
Previous report
The increase in realized and unrealized gain on primarily riskless principal transactions was primarily due to strong market conditions. The increase in unrealized gain on our portfolio of U.S. government securities was due to the following. We invested in 1-year treasury bills and 2-year treasury notes in order to enhance our yield on excess 15c3-3 deposits. During 2022, there was an increase in U.S. government securities yields, which created an unrealized loss on our U.S. government securities portfolio. In 2023, we began to record substantially all of the reversal of the unrealized loss resulting in an unrealized gain due to the securities coming closer to maturity. We continually invest in US government securities based on market yields and cash needs.
Previous report
Market making for the nine months ended September 30, 2024 was $1,706,000 and increased by $870,000 from the corresponding period in the prior year, primarily due to strong equity markets.
Previous report
Stock borrow / stock loan for the nine months ended September 30, 2024 was $14,578,000 and increased by $2,615,000 from the corresponding period in the prior year, primarily due to a growth in stock locate services.
Previous report
Advisory fees for the nine months ended September 30, 2024 were $1,670,000 and increased by $249,000 from the corresponding period in the prior year, primarily due to growth in platform assets.
Previous report
Operating Expenses
Previous report
Clearing fees, including execution costs for the nine months ended September 30, 2024 were $1,011,000 and decreased by $254,000 from the corresponding period in the prior year, primarily due to a reduction in volume.
Previous report
Other general and administrative expenses for the nine months ended September 30, 2024 were $3,169,000 and decreased by $151,000 from the corresponding period in the prior year, primarily due to a decrease in office expenses.
Previous report
Data processing expenses for the nine months ended September 30, 2024 were $2,377,000 and increased by $60,000 from the corresponding period in the prior year, primarily due to increased market activities.
Previous report
Rent and occupancy expenses for the nine months ended September 30, 2024 were $1,240,000 and decreased by $196,000 from the corresponding period in the prior year, primarily due to a discontinued rent expense related to the temporary Miami office.
Previous report
Professional fees for the nine months ended September 30, 2024 were $3,741,000 and increased by $681,000 from the corresponding period in the prior year primarily due to an increase in legal and accounting fees offset by an decrease in consulting services.
Previous report
Interest expense for the nine months ended September 30, 2024 was $183,000 and decreased by $39,000 from the corresponding period in the prior year, primarily due to the repayment of a loan with East West Bank in the second quarter of 2023.
Previous report
Advertising and promotion expense for the nine months ended September 30, 2024 was $225,000 and increased by $173,000 from the corresponding period in the prior year, primarily due to a reversal related to advertising expenses in 2023 as well as an increase in marketing initiatives in 2024.
Previous report
Non-Operating Income (Loss)
Previous report
The earnings of equity method investment in related party for the nine months ended September 30,2024 was $0 and decreased by $111,000 from the corresponding period in the prior year, primarily due to the exit of our investment in Tigress in the third quarter of 2023.
Previous report
The impairment of investment for the nine months ended September 30,2024 was $0 and decreased by $1,035,000 from the corresponding period in the prior year, primarily due to the impairment of our investment in a trading technology provider and the impairment of our investment in Tigress occurring in 2023.
Previous report
Shelf Registration Statement
Previous report
On February 18, 2022, we filed a shelf registration statement on Form S-3 that was declared effective on March 2, 2022 by the SEC for the potential offering, issuance and sale by Siebert of up to $100.0 million of our common stock, preferred stock, warrants to purchase our common stock and/or preferred stock, units consisting of all or some of these securities and subscription rights to purchase all or some of these securities. However, since we filed the 2023 Form 10-K after its scheduled due date, we no longer satisfy the eligibility requirements for use of registration statements on Form S-3, which requires that we file in a timely manner all reports required to be filed during the prior twelve calendar months. As a result, we have suspended use of the shelf registration statement.
Previous report
In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. This ASU is effective for all entities for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating this ASU to determine its impact on the Company’s disclosures.
Reworded paragraphs (29)
Previous wording
Earnings per share were $0.10 for the current quarter, compared to earnings per share of $0.07 for the prior-year quarter. For the current quarter, our net revenues were $22.6 million and operating income before taxes was $4.8 million, compared to net revenues of $18.1 million and operating income before taxes of $4.3 million in the prior-year quarter.
Current wording
In the first quarter of 2025, earnings per share were $0.22, compared to earnings per share of $0.09 in the first quarter of 2024. In the first quarter of 2025, our net revenues were $28.9 million and operating income before taxes was $10.5 million, compared to net revenues of $20.5 million and operating income before taxes of $5.1 million in the first quarter of 2024.
Previous wording
The following table presents simulated changes to net interest revenue over the next 12 months beginning September 30, 2024 and December 31, 2023 of a gradual increase or decrease in market interest rates relative to prevailing market rates at the end of each reporting period:
Current wording
The following table presents simulated changes to net interest revenue over the next 12 months beginning as of March 31, 2025 and December 31, 2024, of a gradual increase or decrease in market interest rates relative to prevailing market rates at the end of each reporting period:
Previous wording
Commissions and fees for the three months ended September 30, 2024 were $2,270,000 and increased by $367,000 from the corresponding period in the prior year, primarily due to strong market conditions.
Current wording
Commissions and fees for the three months ended March 31, 2025 were $2,102,000 and decreased by $198,000 from the corresponding period in the prior year, primarily due to market conditions.
Previous wording
Principal transactions and proprietary trading for the three months ended September 30, 2024 were $4,197,000 and increased by $444,000 from the corresponding period in the prior year, primarily due to the factors discussed below.
Current wording
Principal transactions and proprietary trading for the three months ended March 31, 2025 were $12,961,000 and increased by $9,455,000 from the corresponding period in the prior year, primarily due to the factors discussed below.
Previous wording
Market making for the three months ended September 30, 2024 was $597,000 and increased by $374,000 from the corresponding period in the prior year, primarily due to strong equity markets.
Current wording
Market making for the three months ended March 31, 2025 was $552,000 and decreased by $120,000 from the corresponding period in the prior year, primarily due to market conditions.
Previous wording
Stock borrow / stock loan for the three months ended September 30, 2024 was $5,784,000 and increased by $1,776,000 from the corresponding period in the prior year, primarily due to growth in stock locate services.
Current wording
Stock borrow / stock loan for the three months ended March 31, 2025 was $4,837,000 and increased by $739,000 from the corresponding period in the prior year, primarily due to growth in stock locate services and securities lending businesses.
Previous wording
Advisory fees for the three months ended September 30, 2024 were $629,000 and increased by $123,000 from the corresponding period in the prior year, primarily due to growth in platform assets.
Current wording
Advisory fees for the three months ended March 31, 2025 were $748,000 and increased by $258,000 from the corresponding period in the prior year, primarily due to growth in platform assets.
Previous wording
Other income for the three months ended September 30, 2024 was 733,000 and increased by $270,000 from the corresponding period in the prior year, primarily due to fees related to administrative services.
Current wording
Other income for the three months ended March 31, 2025 was 774,000 and increased by $147,000 from the corresponding period in the prior year, primarily due to fees related to administrative services.
Previous wording
Employee compensation and benefits for the three months ended September 30, 2024 were $11,886,000 and increased by $3,163,000 from the corresponding period in the prior year, primarily due toan increase in commission payouts, executive compensation, as well as additional personnel related to technology initiatives.
Current wording
Employee compensation and benefits for the three months ended March 31, 2025 were $11,992,000 and increased by $1,546,000 from the corresponding period in the prior year, primarily due toan increase in commission payouts and equity compensation, as well as additional personnel related to technology initiatives, and new business lines including our investment banking division.
Previous wording
Clearing fees, including execution costs for the three months ended September 30, 2024 were $345,000 and decreased by $236,000 from the corresponding period in the prior year, primarily due to a reduction in volume.
Current wording
Clearing fees, including execution costs for the three months ended March 31, 2025 were $454,000 and increased by $26,000 from the corresponding period in the prior year.
Previous wording
Technology and communications expenses for the three months ended September 30, 2024 were $1,147,000 and increased by $320,000 from the corresponding period in the prior year, primarily due to an expansion of technological infrastructure.
Current wording
Technology and communications expenses for the three months ended March 31, 2025 were $1,105,000 and increased by $229,000 from the corresponding period in the prior year, primarily due to an expansion of technological infrastructure.
Previous wording
Other income for the nine months ended September 30, 2024 was $2,527,000 and increased by $1,332,000 from the corresponding period in the prior year, primarily due to fees related to administrative services.
Current wording
Other general and administrative expenses for the three months ended March 31, 2025 were $1,509,000 and increased by $480,000 from the corresponding period in the prior year primarily due to fees related to expansion into new businesses.
Previous wording
Data processing expenses for the three months ended September 30, 2024 were $894,000 and increased by $169,000 from the corresponding period in the prior year, primarily due to increased market activities.
Current wording
Data processing expenses for the three months ended March 31, 2025 were $949,000 and increased by $198,000 from the corresponding period in the prior year, primarily due to increased market activities.
Previous wording
Rent and occupancy expenses for the three months ended September 30, 2024 were $365,000 and decreased by $102,000 from the corresponding period in the prior year, primarily due to the expiration of short term leases.
Current wording
Rent and occupancy expenses for the three months ended March 31, 2025 were $467,000 and decreased by $30,000 from the corresponding period in the prior year.
Previous wording
Depreciation and amortization expenses for the three months ended September 30, 2024 were $350,000 and increased by $85,000 from the corresponding period in the prior year, primarilydue to an increase in depreciation related to office facilities in 2024.
Current wording
Depreciation and amortization expenses for the three months ended March 31, 2025 were $415,000 and increased by $160,000 from the corresponding period in the prior year, primarilydue to an increase in depreciation related to the expansion of the technology infrastructure.
Previous wording
Other general and administrative expenses for the three months ended September 30, 2024 were $1,070,000 and decreased by $38,000 from the corresponding period in the prior year.
Current wording
Interest expense for the three months ended March 31, 2025 was $89,000 and increased by $38,000 from the corresponding period in the prior year.
Previous wording
Advertising and promotion expense for the three months ended September 30, 2024 was $128,000 and increased by $66,000 from the corresponding period in the prior year, primarily due to a reversal related to advertising expenses in 2023 as well as an increase in marketing initiatives in 2024.
Current wording
Advertising and promotion expense for the three months ended March 31, 2025 was $154,000 and increased by $100,000 from the corresponding period in the prior year, primarily due to an increase in marketing initiatives.
Previous wording
The provision from income taxes for the nine months ended September 30, 2024 was $3,952,000 and increased by $331,000 from the corresponding period in the prior year. The change from the corresponding period in the prior year is primarily due to increased pre-tax earnings in the nine months ending September 30, 2024. Refer to Note 16 – Income Taxes for additional detail.
Current wording
The provision from income taxes for the three months ended March 31, 2025 was $1,835,000 and increased by $420,000 from the corresponding period in the prior year. The change from the corresponding period in the prior year is primarily due to an increase in pre-tax earnings in the first quarter of 2025. Refer to Note 12 – Income Taxes for additional detail.
Previous wording
As further discussed in Note 1 – Organization and Basis of Presentation, we consolidate RISE’s financial results into our financial statements and reflect the portion of RISE not held by Siebert as a noncontrolling interest in our financial statements. The net income attributable to noncontrolling interests for the three months ended September 30, 2024 was $8,000, and increased by $12,000 from the corresponding period in the prior year.
Current wording
As further discussed in Note 1 – Organization and Basis of Presentation, we consolidate RISE’s financial results into our financial statements and reflect the portion of RISE not held by Siebert as a noncontrolling interest in our financial statements. The net loss attributable to noncontrolling interests for the three months ended March 31, 2025 was $3,000 and increased by $2,000 from the corresponding period in the prior year.
Previous wording
Assets as of September 30, 2024 were $579,156,000 and decreased by $222,644,000 from December 31, 2023, primarily due to a decrease in cash and securities segregated for regulatory purposes and securities borrowed.
Current wording
Assets as of March 31, 2025 were $534,187,000 and decreased by $14,519,000 from December 31, 2024, primarily due to a decrease in securities borrowed.
Previous wording
Liabilities as of September 30, 2024 were $495,833,000 and decreased by $235,258,000 from December 31, 2023, primarily due to a decrease in payables to customers and securities loaned.
Current wording
Liabilities as of March 31, 2025 were $439,915,000 and increased by $5,339,000 from December 31, 2024, primarily due to an increase in securities loaned partially offset by a decrease in payables to customers.
Previous wording
Our cash and cash equivalents were $4.4 million and $5.7 million as of September 30, 2024 and December 31, 2023, respectively.
Current wording
Our cash and cash equivalents were $25.7 million and $32.6 million as of March 31, 2025 and December 31, 2024, respectively.
Previous wording
MSCO can transfer funds to Siebert as long as MSCO maintains its liquidity and regulatory capital requirements. RISE can transfer funds to its shareholders, of which Siebert is entitled to its proportional ownership interest, as long as RISE maintains its liquidity and regulatory capital requirements. For the three and nine months ended September 30, 2024 and 2023, MSCO and RISE had sufficient net capital to meet their respective liquidity and regulatory capital requirements. Refer to Note 17 – Capital Requirements for more detail about our capital requirements.
Current wording
MSCO can transfer funds to Siebert as long as MSCO maintains its liquidity and regulatory capital requirements. RISE can transfer funds to its shareholders, of which Siebert is entitled to its proportional ownership interest, as long as RISE maintains its liquidity and regulatory capital requirements. For the three ended March 31, 2025 and 2024, MSCO and RISE had sufficient net capital to meet their respective liquidity and regulatory capital requirements. Refer to Note 13 – Capital Requirements for more detail about our capital requirements.
Previous wording
For the nine months ended September 30, 2024, cash used in operating activities decreased by $15.9 million compared to the prior year period, which was primarily driven by the net change in securities borrowed and securities loaned, receivables from broker-dealers and clearing organizations, receivables from customers, payables to non-customers and securities owned, at fair value.
Current wording
For the three months ended March 31, 2025, cash used in operating activities decreased by $12.5 million compared to the prior year period, which was primarily driven by net change in securities loaned, securities borrowed and payables to customers.
Previous wording
For the nine months ended September 30, 2024, cash used in investing activities increased by $3.4 million compared to the prior year period, which was primarily driven by the purchase of software related to the Retail Platform as well as the acquisition of GE in 2024.
Current wording
For the three months ended March 31, 2025, cash used in investing activities decreased by $0.6 million compared to the prior year period, which was primarily driven by the New York office build out occurring in the prior year period.
Previous wording
For the nine months ended September 30, 2024, cash flows used in financing activities decreased by $13.1 million compared to 2023, which was primarily driven by the issuance of shares related to the transaction with Kakaopay in 2023.
Current wording
For the three months ended March 31, 2025, cash flows used in financing activities decreased by $4.8 million compared to 2024, which was primarily driven by the draws on the bank loan occurring in the prior year period.
Previous wording
We enter into various transactions to meet the needs of customers, conduct trading activities, and manage market risks and are, therefore, subject to varying degrees of market and credit risk. In the normal course of business, our customer activities involve the execution, settlement, and financing of various customer securities transactions. These activities may expose us to off-balance sheet risk in the event the customer or other broker is unable to fulfill their contracted obligations and we are forced to purchase or sell the financial instrument underlying the contract at a loss. There were no material losses for unsettled customer transactions for the three and nine months ended September 30, 2024 and 2023. Refer to Note 18 – Financial Instruments with Off-Balance Sheet Risk for additional detail.
Current wording
We enter into various transactions to meet the needs of customers, conduct trading activities, and manage market risks and are, therefore, subject to varying degrees of market and credit risk. In the normal course of business, our customer activities involve the execution, settlement, and financing of various customer securities transactions. These activities may expose us to off-balance sheet risk in the event the customer or other broker is unable to fulfill their contracted obligations and we are forced to purchase or sell the financial instrument underlying the contract at a loss. There were no material losses for unsettled customer transactions for the three months ended March 31, 2025 and 2024. Refer to Note 14 – Financial Instruments with Off-Balance Sheet Risk for additional detail.
Previous wording
As of both September 30, 2024 and December 31, 2023, the Company recorded an uncertain tax position of $1,405,000 related to various tax matters, which is included in the line item “Taxes payable” in the statements of financial condition.
Current wording
As of both March 31, 2025 and December 31, 2024, the Company recorded an uncertain tax position of $1,354,000 related to various tax matters, which is included in the line item “Taxes payable” in the statements of financial condition.
Previous wording
Refer to Note 2 – New Accounting Standards for additional information regarding new ASUs issued by the FASB.
Current wording
Refer to Note 2 – Summary of Significant Accounting Policies for information regarding new Accounting Standards Updates (“ASU”s) issued by the FASB.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
In November 2024, the FASB issued ASU “2024-03”, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures” (“ASU 2024-03”). The ASU is intended to enhance the transparency and decision usefulness of income statement expense disclosures by requiring greater disaggregation of certain expense categories. ASU 2024-03 will be effective for us for annual periods beginning after December 15, 2025, though early adoption is permitted. We are currently evaluating the impact that ASU 2024-03 will have on our consolidated financial statements and we anticipate the amendments will require significant changes to our expense disclosures.
Rearranged previous paragraphs (9)
Previous report — wording carried elsewhere
The provision from income taxes for the three months ended September 30, 2024 was $1,005,000 and decreased by $511,000 from the corresponding period in the prior year. The change from the corresponding period in the prior year is primarily due to the impact of finalizing the prior year tax filings in the third quarter of 2024. Refer to Note 16 – Income Taxes for additional detail.
Previous report — wording carried elsewhere
Statements of Operations for the Nine Months Ended September 30, 2024 and 2023
Previous report — wording carried elsewhere
Below is a summary of the change in the principal transactions and proprietary trading line item for the periods presented.
Previous report — wording carried elsewhere
Employee compensation and benefits for the nine months ended September 30, 2024 were $32,569,000 and increased by $8,799,000 from the corresponding period in the prior year, primarily due toan increase in commission payouts, executive compensation, as well as additional personnel related to technology initiatives.
Previous report — wording carried elsewhere
Technology and communications expenses for the nine months ended September 30, 2024 were $2,903,000 and increased by $494,000 from the corresponding period in the prior year, primarily due to an expansion of technological infrastructure.
Previous report — wording carried elsewhere
Depreciation and amortization expenses for the nine months ended September 30, 2024 were $941,000 and increased by $225,000 from the corresponding period in the prior year, primarilydue to an increase in depreciation related to office facilities in 2024.
Previous report — wording carried elsewhere
Provision For (Benefit From) Income Taxes
Previous report — wording carried elsewhere
Net Income (Loss) Attributable to Noncontrolling Interests
Previous report — wording carried elsewhere
As further discussed in Note 1 – Organization and Basis of Presentation, we consolidate RISE’s financial results into our financial statements and reflect the portion of RISE not held by Siebert as a noncontrolling interest in our financial statements. The net income attributable to noncontrolling interests for the nine months ended September 30, 2024 was $14,000, and decreased by $26,000 from the corresponding period in the prior year,.