Siebert Financial Corp. Files Q2 2024 10-Q Report

TL;DR

Siebert Financial Corp. filed its 10-Q for Q2 2024. Check financials.

AI Summary

Siebert Financial Corp. filed its quarterly report on Form 10-Q for the period ended June 30, 2024. The company, incorporated in New York, operates in the security brokers, dealers & flotation companies sector. Its principal executive offices are located at 120 Wall Street, New York, NY 10005.

Why It Matters

This filing provides investors with an update on Siebert Financial Corp.'s financial performance and operational status for the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a standard quarterly filing providing financial information, not indicating immediate significant risks.

Key Players & Entities

• SIEBERT FINANCIAL CORP (company) — Registrant
• 0001213900-24-068836 (other) — Accession Number
• June 30, 2024 (date) — Quarterly period ended
• New York (location) — State of Incorporation
• 120 WALL STREET (address) — Business Address
• 212-644-2400 (phone_number) — Business Phone

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock - $0.01 par value SIEB The Nasdaq Capital Marke

Filing Documents

• ea0211055-10q_siebertfin.htm (10-Q) — 920KB
• ea021105501ex31-1_siebertfin.htm (EX-31.1) — 13KB
• ea021105501ex31-2_siebertfin.htm (EX-31.2) — 14KB
• ea021105501ex32-1_siebertfin.htm (EX-32.1) — 6KB
• ea021105501ex32-2_siebertfin.htm (EX-32.2) — 8KB
• 0001213900-24-068836.txt ( ) — 6055KB
• sieb-20240630.xsd (EX-101.SCH) — 77KB
• sieb-20240630_cal.xml (EX-101.CAL) — 67KB
• sieb-20240630_def.xml (EX-101.DEF) — 292KB
• sieb-20240630_lab.xml (EX-101.LAB) — 563KB
• sieb-20240630_pre.xml (EX-101.PRE) — 293KB
• ea0211055-10q_siebertfin_htm.xml (XML) — 731KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS 1 CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION 1 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 2 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY 3 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 4 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 5

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 19

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 28

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 29

- OTHER INFORMATION

PART II - OTHER INFORMATION 30

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 30

RISK FACTORS

ITEM 1A. RISK FACTORS 30

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 30

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 30

EXHIBITS

ITEM 6. EXHIBITS 31

SIGNATURES

SIGNATURES 32 - i -

Forward-Looking Statements

Forward-Looking Statements For purposes of this Quarterly Report on Form 10-Q ("Report"), the terms "Siebert," "Company," "we," "us" and "our" refer to Siebert Financial Corp., its wholly-owned and majority-owned subsidiaries collectively, unless the context otherwise requires. The "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking and Results of Operations." Forward-looking statements include statements preceded by, followed by or that include the words "may," "could," "would," "should," "believe," "expect," "anticipate," "plan," "estimate," "target," "project," "intend" and similar words or expressions. In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances are

forward-looking statements

forward-looking statements. These forward-looking statements, which reflect our beliefs, objectives, and expectations as of the date hereof, are based on the best judgement of management. All forward-looking statements speak only as of the date on which they are made. Such forward-looking statements are subject to certain risks, uncertainties and assumptions relating to factors that could cause actual results to differ materially from those anticipated in such statements, including the following: economic, social and political conditions, global economic downturns resulting from extraordinary events; securities industry risks; interest rate risks; liquidity risks; credit risk with clients and counterparties; risk of liability for errors in clearing functions; systemic risk; systems failures, delays and capacity constraints; network security risks; competition; reliance on external service providers; new laws and regulations affecting our business; net capital requirements; extensive regulation, regulatory uncertainties and legal matters; failure to maintain relationships with employees, customers, business partners or governmental entities; the inability to achieve synergies or to implement integration plans and other consequences associated with risks and uncertainties detailed in Part I, Item 1A – " Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2023, ("2023 Form 10-K"), and our other filings with the Securities and Exchange Commission ("SEC"). We caution that the foregoing list of factors is not exclusive, and new factors may emerge, or changes to the foregoing factors may occur, that could impact our business. The forward-looking statements are based upon management's beliefs and assumptions and are made as of the date of this Report. You should not place undue reliance on these forward-looking statements. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future e

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS SIEBERT FINANCIAL CORP. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION June 30, 2024 (unaudited) December 31, 2023 ASSETS Current assets Cash and cash equivalents $ 5,200,000 $ 5,735,000 Cash and securities segregated for regulatory purposes; (Cash of $ 128.0 million, securities with a fair value of $ 86.6 million as of June 30, 2024; Cash of $ 158.8 million, securities with a fair value of $ 115.5 million as of December 31, 2023) 214,635,000 274,317,000 Receivables from customers 74,875,000 72,823,000 Receivables from broker-dealers and clearing organizations 8,720,000 3,863,000 Receivables from non-customers 455,000 241,000 Other receivables 4,097,000 2,424,000 Prepaid expenses and other assets 1,693,000 1,700,000 Securities borrowed 253,781,000 394,709,000 Securities owned, at fair value 16,768,000 18,038,000 Total Current assets 580,224,000 773,850,000 Deposits with broker-dealers and clearing organizations 7,279,000 7,885,000 Property, office facilities, and equipment, net 10,195,000 9,404,000 Software, net 3,454,000 1,432,000 Lease right-of-use assets 2,297,000 2,736,000 Deferred tax assets 3,672,000 4,504,000 Goodwill 1,989,000 1,989,000 Total Assets $ 609,110,000 $ 801,800,000 LIABILITIES AND EQUITY Liabilities Current liabilities Payables to customers $ 233,873,000 $ 289,777,000 Payables to non-customers 186,000 713,000 Drafts payable 1,527,000 1,726,000 Payables to broker-dealers and clearing organizations 5,015,000 481,000 Accounts payable and accrued liabilities 4,104,000 3,639,000 Taxes payable 1,581,000 2,313,000 Securities loaned 272,515,000 419,433,000 Securities sold, not yet purchased, at fair value 2,000 2,000 Current portion of lease liabilities 702,000 759,000 Current portion of long-term debt 86,000 84,000 Current portion of deferred contract incentive 758,000

financial statements and related disclosures as of June 30, 2024

financial statements and related disclosures as of June 30, 2024. 3. Transaction with Tigress The Company entered into agreements and subsequent terminations with Tigress Holdings, LLC ("Tigress"). Refer to Note 3 – Transactions with Tigress and Hedge Connection in the Company's 2023 Form 10-K for more detail. Information related to transactions with Tigress that impacted the periods presented is detailed below. During the three months ended June 30, 2024 and 2023, the Company recognized $ 0 and $ 73,000 , respectively, for its equity method investment in Tigress. During the six months ended June 30, 2024 and 2023, the Company recognized $ 0 and $ 111,000 , respectively, for its equity method investment in Tigress. As of both June 30, 2024 and December 31, 2023, the Company had no interest in Tigress. 4. RISE As of both June 30, 2024 and December 31, 2023, the Company's ownership in RISE was 68 % and Siebert consolidated RISE under the voting interest model ("VOE model") . As of both June 30, 2024 and December 31, 2023, RISE reported assets of $ 1.3 million and liabilities of $ 0 . There are no restrictions on RISE's assets. 5. Kakaopay Transaction On April 27, 2023, the Company entered into a Stock Purchase Agreement (the "First Tranche Stock Purchase Agreement") with Kakaopay Corporation ("Kakaopay"), a company established under the Laws of the Republic of Korea and a fintech subsidiary of Korean-based conglomerate Kakao Corp. pursuant to which the Company agreed to issue to Kakaopay 8,075,607 shares of the Company's common stock (the "First Tranche Shares" and, such transaction, the "First Tranche") at a per share price of Two Dollars Fifteen Cents ($ 2.15 ), which represented 19.9 % of the outstanding equity securities of the Company on a fully diluted basis (taking into account the issuance of the First Tranche Shares). The First Tranche closed on May 18, 2023. Refer to Note 5 – Kakaopay Transaction in the Company's 2023 Form 10-K for further detai

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