Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 14, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | SIEBERT FINANCIAL CORP | |
Entity Central Index Key | 0000065596 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 27,157,188 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 | |
Entity Transition Period | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 4,667,000 | $ 7,229,000 |
Receivables from clearing and other brokers | 2,263,000 | 1,975,000 |
Receivable from related party | 1,000,000 | 1,000,000 |
Receivable from lessors | 171,000 | |
Other receivables | 130,000 | 151,000 |
Prepaid expenses and other assets | 748,000 | 470,000 |
Furniture, equipment and leasehold improvements, net | 1,015,000 | 468,000 |
Software, net | 1,498,000 | 1,137,000 |
Lease right-of-use assets | 2,589,000 | |
Equity method investment in related party | 3,720,000 | |
Deferred tax assets | 5,074,000 | 5,576,000 |
Total assets | 22,704,000 | 18,177,000 |
Liabilities: | ||
Accounts payable and accrued liabilities | 620,000 | 699,000 |
Due to clearing brokers and related parties | 17,000 | 133,000 |
Lease incentive obligation | 171,000 | |
Lease liabilities | 2,895,000 | |
Total liabilities | 3,532,000 | 1,003,000 |
Commitments and Contingencies | ||
Stockholders' equity: | ||
Common stock, $.01 par value; 49,000,000 shares authorized, 27,157,188 shares issued and outstanding as of June 30, 2019 and December 31, 2018 | 271,000 | 271,000 |
Additional paid-in capital | 7,641,000 | 7,641,000 |
Retained earnings | 11,260,000 | 9,262,000 |
Total stockholders' equity | 19,172,000 | 17,174,000 |
Total liabilities and stockholders' equity | $ 22,704,000 | $ 18,177,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Stockholder's equity: | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 49,000,000 | 49,000,000 |
Common stock, issued shares | 27,157,188 | 27,157,188 |
Common stock, outstanding shares | 27,157,188 | 27,157,188 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue: | ||||
Margin interest, marketing and distribution fees | $ 2,783,000 | $ 2,687,000 | $ 5,555,000 | $ 5,222,000 |
Commissions and fees | 2,303,000 | 2,376,000 | 4,105,000 | 5,033,000 |
Principal transactions | 1,766,000 | 2,263,000 | 3,438,000 | 5,204,000 |
Advisory fees | 193,000 | 138,000 | 361,000 | 171,000 |
Interest | 16,000 | 24,000 | 31,000 | 35,000 |
Total Revenue | 7,061,000 | 7,488,000 | 13,490,000 | 15,665,000 |
Expenses: | ||||
Employee compensation and benefits | 2,890,000 | 3,289,000 | 5,725,000 | 6,951,000 |
Clearing fees, including execution costs | 578,000 | 679,000 | 1,232,000 | 1,581,000 |
Professional fees | 447,000 | 487,000 | 949,000 | 1,095,000 |
Other general and administrative | 887,000 | 473,000 | 1,272,000 | 859,000 |
Technology and communications | 262,000 | 330,000 | 509,000 | 564,000 |
Rent and occupancy | 320,000 | 247,000 | 615,000 | 489,000 |
Depreciation and amortization | 251,000 | 26,000 | 426,000 | 50,000 |
Advertising and promotion | 21,000 | 34,000 | ||
Total Expenses | 5,635,000 | 5,552,000 | 10,728,000 | 11,623,000 |
Earnings of equity method investment in related party | 15,000 | 54,000 | ||
Income from before provision for income tax | 1,441,000 | 1,936,000 | 2,816,000 | 4,042,000 |
Provision for income tax | 449,000 | 137,000 | 818,000 | 550,000 |
Net Income | $ 992,000 | $ 1,799,000 | $ 1,998,000 | $ 3,492,000 |
Net income per share of common stock - Basic and diluted | $ 0.04 | $ 0.07 | $ 0.07 | $ 0.13 |
Weighted average shares outstanding - Basic and diluted | 27,157,188 | 27,157,188 | 27,157,188 | 27,157,188 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Number of Shares $.01 Par Value [Member] | Additional Paid-In Capital [Member] | Retained Earnings / (Accumulated Deficit) [Member] | Total |
Beginning balance at Dec. 31, 2017 | $ 271,000 | $ 7,641,000 | $ (2,700,000) | $ 5,212,000 |
Beginning balance, shares at Dec. 31, 2017 | 27,157,188 | |||
Net income | 3,492,000 | 3,492,000 | ||
Ending balance at Jun. 30, 2018 | $ 271,000 | 7,641,000 | 793,000 | 8,705,000 |
Ending balance, shares at Jun. 30, 2018 | 27,157,188 | |||
Beginning balance at Dec. 31, 2018 | $ 271,000 | 7,641,000 | 9,262,000 | 17,174,000 |
Beginning balance, shares at Dec. 31, 2018 | 27,157,188 | |||
Net income | 1,998,000 | 1,998,000 | ||
Ending balance at Jun. 30, 2019 | $ 271,000 | $ 7,641,000 | $ 11,260,000 | $ 19,172,000 |
Ending balance, shares at Jun. 30, 2019 | 27,157,188 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 1,998,000 | $ 3,492,000 |
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | ||
Deferred income tax expense | 502,000 | |
Depreciation and amortization | 426,000 | 50,000 |
Earnings of equity method investment in related party | (54,000) | |
Changes in: | ||
Securities owned, at fair value | (329,000) | |
Receivables from clearing and other brokers | (288,000) | (1,061,000) |
Receivable from related party | 283,000 | |
Receivable from lessors | 171,000 | |
Other receivables | 21,000 | |
Prepaid expenses and other assets | (278,000) | (198,000) |
Accounts payable and accrued liabilities | (79,000) | 117,000 |
Due to clearing brokers and related parties | (116,000) | 202,000 |
Income tax payable | 474,000 | |
Net cash provided by operating activities | 2,303,000 | 3,030,000 |
Cash flows from investing activities: | ||
Equity method investment in related party | (3,665,000) | |
Purchase of furniture, equipment, and leasehold improvements | (588,000) | (109,000) |
Purchase of software | (612,000) | |
Net cash used in investing activities | (4,865,000) | (109,000) |
Net (decrease) / increase in cash and cash equivalents | (2,562,000) | 2,921,000 |
Cash and cash equivalents - beginning of period | 7,229,000 | 3,765,000 |
Cash and cash equivalents - end of period | $ 4,667,000 | $ 6,686,000 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation Organization Siebert Financial Corp., a New York corporation incorporated in 1934, is a holding company that conducts its retail discount brokerage business through its wholly-owned subsidiary, Muriel Siebert & Co., Inc. (“MSCO”), a Delaware corporation and registered broker-dealer, its investment advisory business through its wholly-owned subsidiary, Siebert AdvisorNXT, Inc. (“AdvisorNXT”), a New York corporation registered with the U.S. Securities and Exchange Commission (“SEC”) as a Registered Investment Advisor under the Investment Advisers Act of 1940, as amended, and its insurance business through its wholly-owned subsidiary, Park Wilshire Companies, Inc. (“PWC”), a Texas corporation and licensed insurance agency. It also conducts operations through a fourth wholly-owned subsidiary, KCA Technologies, LLC. (“KCAT”), a Nevada limited liability company and developer of robo-advisory technology. For purposes of this Quarterly Report on Form 10-Q, the terms “Siebert,” “Company,” “we,” “us,” and “our” refer to Siebert Financial Corp., MSCO, AdvisorNXT, PWC, and KCAT collectively, unless the context otherwise requires. In addition, as reported in a current report on Form 8-K filed on July 19, 2019, the Company signed a binding letter of intent to purchase the remaining 85% of StockCross Financial Services, Inc. (“StockCross”). After the close of the transaction, which is pending regulatory approval, the Company will own 100% of StockCross. The Company is headquartered in New York, NY, with primary operations in New Jersey and California. The Company has 12 offices throughout the U.S. and clients around the world. The Company’s SEC filings are available through the Company’s website at www.siebertnet.com, where investors can obtain copies of the Company’s public filings free of charge. The Company’s common stock (“Common Stock”), par value $.01 per share, trades on the Nasdaq Capital Market under the symbol “SIEB.” The Company primarily operates in the securities brokerage and asset management industry and has no other reportable segments. All of the Company's revenues for the three months ended and six months ended June 30, 2019 and 2018 were derived from its operations in the U.S. Basis of Presentation Basis of Presentation The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the U.S. (GAAP) for interim financial information with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete annual financial statements. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring entries) necessary to fairly present such interim results. Interim results are not necessarily indicative of the results of operations which may be expected for a full year or any subsequent period. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K”). The condensed consolidated financial statements include the accounts of Siebert and its wholly-owned subsidiaries and upon consolidation, all intercompany balances and transactions are eliminated. The U.S. dollar is the functional currency of the Company. Reclassifications Certain prior period amounts have been reclassified to conform to the current year’s presentation. These reclassifications have no effect on previously reported net income or total assets or total liabilities. Significant Accounting Policies The Company’s significant accounting policies are included in Note 2 in the Company’s 2018 Form 10-K. There have been no significant changes to these accounting policies for the six months ended June 30, 2019 except as described in the sections “Equity Method Investment” and the “Note 2 – New Accounting Standards” below. Equity Method Investments Investments in which the Company has the ability to exercise significant influence, but does not control, are accounted for under the equity method of accounting and are included in the equity method investment in related party asset in the condensed consolidated statements of financial condition. Under this method of accounting, the Company’s share of the net earnings or losses of the investee is presented before the income before provision for income tax on the condensed consolidated statements of operations. The Company evaluates its equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Standards | 2. New Accounting Standards Recently Adopted Accounting Pronouncements ASU 2016-02 The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients,” which permits the Company not to reassess under the new standard the Company’s prior conclusions about lease identification, lease classification and initial direct costs. The Company has not elected the hindsight practical expedient at transition. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company will not recognize lease right-of-use assets or lease liabilities. ASU 2018-15 |
Capital Requirements
Capital Requirements | 6 Months Ended |
Jun. 30, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Capital Requirements | 3. Capital Requirements MSCO is subject to the SEC’s Uniform Net Capital Rule (Rule 15c3-1 or “Uniform Net Capital Rule”), which requires the maintenance of minimum net capital. MSCO has elected to use the alternative method, permitted by the Uniform Net Capital Rule, which requires that MSCO maintain minimum net capital, as defined, equal to the greater of $250,000 or 2% of aggregate debit balances arising from customer transactions, as defined. The Uniform Net Capital Rule also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital would be less than 5% of aggregate debits. As of June 30, 2019, MSCO had net capital of approximately $7.0 million, which was approximately $6.8 million in excess of required net capital of $250,000. As of December 31, 2018, MSCO had net capital of approximately $8.9 million, which was approximately $8.7 million in excess of required net capital of $250,000. MSCO claims exemption from the reserve requirements under the SEC’s Rule 15c 3-3 pursuant to paragraph (k)(2)(ii) as it clears its customer transactions through one unaffiliated and one affiliated clearing firm on a fully disclosed basis. The Company’s cash and cash equivalents are unrestricted and are used to fund working capital needs. The Company’s total assets as of June 30, 2019 were approximately $22.7 million, of which $4.7 million, or approximately 21%, is highly liquid. The Company’s total assets as of December 31, 2018 were approximately $18.2 million, of which $7.2 million, or approximately 40%, is highly liquid. |
Receivables from and Payable to
Receivables from and Payable to Brokers, Dealers and Clearing Organizations | 6 Months Ended |
Jun. 30, 2019 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
Receivables from and Payable to Brokers, Dealers and Clearing Organizations | 4. Receivables from and Payable to Brokers, Dealers and Clearing Organizations The Company evaluates receivables from clearing organizations and other brokers for collectability noting no amount was considered uncollectable as of June 30, 2019 and the year ended December 31, 2018. No valuation allowance is recognized for receivables from clearing and other brokers as the Company does not have a history of losses from these receivables and does not anticipate losses in the future. Amounts receivable from / payable to brokers, dealers and clearing organizations consisted of the following as of the periods indicated: As of June 30, 2019 (unaudited) As of December 31, 2018 Receivables from clearing and other brokers National Financial Services (“NFS”) $ 1,632,000 $ 1,664,000 StockCross 631,000 311,000 Total Receivables from clearing and other brokers $ 2,263,000 $ 1,975,000 Receivable from related party StockCross $ 1,000,000 $ 1,000,000 Total Receivable from related party $ 1,000,000 $ 1,000,000 Due to clearing brokers and related parties PWC $ 15,000 $ — MSCO 2,000 29,000 StockCross — 46,000 NFS — 58,000 Total Due to clearing brokers and related parties $ 17,000 $ 133,000 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | 5. Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) As of June 30, 2019, the Company rents office space under operating leases expiring in 2019 through 2024, and the Company has no financing leases. The leases call for base rent plus escalations as well as other operating expenses. The following table represents the Company’s lease right-of-use assets and lease liabilities on the condensed consolidated statements of financial condition. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the condensed consolidated statements of financial condition. As of June 30, 2019 (unaudited) As of December 31, 2018 Assets Lease right-of-use assets $ 2,589,000 — Liabilities Lease liabilities $ 2,895,000 — The calculated amount of the lease right-of-use assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. As of June 30, 2019, the Company does not believe that any of the renewal options under the existing leases are reasonably certain to be exercised; however, the Company will continue to assess and monitor the lease renewal options on an ongoing basis. The Company also leases some miscellaneous office equipment, but they are immaterial and therefore the Company records the costs associated with this office equipment on the statement of operations rather than capitalizing them as lease right-of-use assets. The Company determined a discount rate of 5.0% would approximate the Company’s cost to obtain financing given its size, growth, and risk profile. Lease Term and Discount Rate Weighted average remaining lease term – operating leases (in years) 3.7 Weighted average discount rate – operating leases 5.0 % The following table represents lease costs and other lease information. The Company elected to separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost $ 182,000 $ 330,000 Short-term lease cost 120,000 240,000 Variable lease cost 18,000 45,000 Sublease income — — Total lease cost $ 320,000 $ 615,000 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 207,000 $ 357,000 Lease right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 535,000 $ 2,215,000 Lease Commitments Future annual minimum payments for operating leases with initial terms of greater than one year as of June 30, 2019 were as follows: Year Amount 2019 $ 501,000 2020 942,000 2021 729,000 2022 489,000 2023 468,000 2024 39,000 Thereafter — Remaining balance of lease payments 3,168,000 Difference between undiscounted cash flows and discounted cash flows 273,000 Lease liabilities $ 2,895,000 Rent and related operating expenses were $320,000 and $247,000 for the three months ended June 30, 2019 and 2018, respectively. Rent and related operating expenses were $615,000 and $489,000 for the six months ended June 30, 2019 and 2018, respectively. |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | 6. Equity Method Investments In January 2019, the Company purchased approximately 15% of StockCross’ outstanding shares. The number of shares purchased by the Company was 922,875 at a per share price of approximately $3.97. The Company’s ownership in StockCross is accounted for under the equity method of accounting. In determining whether the investment in StockCross should be accounted for under the equity method of accounting, the Company considered the guidance under ASC 323, Investments – Equity Method and Joint Venture Under the equity method, the Company recognizes its share of StockCross’ earnings in the earnings of equity method investment in related party line item in the condensed consolidated statements of operations. The Company has elected to classify distributions received from equity method investees using the cumulative earnings approach. For the three months and six months ended June 30, 2019, the earnings recognized from the Company’s investment in StockCross was approximately $15,000 and $54,000, respectively. This investment is reported in the equity method investment in related party asset in the condensed consolidated statements of financial condition. As of June 30, 2019, the carrying amount of the investment in StockCross was approximately $3,720,000. The Company evaluates its equity method investments for impairment when events or changes indicate the carrying value may not be recoverable. If the impairment is determined to be other-than-temporary, the Company will recognize an impairment loss equal to the difference between the expected realizable value and the carrying value of the investment. As of June 30, 2019, the fair value of the investment in StockCross is not estimated because there were no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment and thus, no impairment was recorded. Below is a table showing illustrating the summary from the condensed consolidated statements of operations for StockCross for the period indicated (unaudited): Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Revenue $ 3,781,000 $ 7,795,000 Gross profit $ 273,000 $ 558,000 Net income $ 99,000 $ 345,000 |
Commitments, Contingencies, and
Commitments, Contingencies, and Other | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Other | 7. Commitments, Contingencies, and Other Legal and Regulatory Matters The Company is party to certain claims, suits and complaints arising in the ordinary course of business. In the opinion of the Company, all such matters are without merit, or involve amounts which would not have a significant effect on the financial statements of the Company. General Contingencies In the normal course of its business, the Company indemnifies and guarantees certain service providers against specified potential losses in connection with their acting as an agent of, or providing services to, the Company. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. The Company provides representations and warranties to counterparties in connection with a variety of commercial transactions and occasionally indemnifies them against potential losses caused by the breach of those representations and warranties. The Company may also provide standard indemnifications to some counterparties to protect them in the event additional taxes are owed or payments are withheld, due either to a change in or adverse application of certain tax laws. These indemnifications generally are standard contractual terms and are entered into in the normal course of business. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. The Company is self-insured with respect to employee health claims. The Company maintains stop-loss insurance for certain risks and has a health claim reinsurance limit capped at approximately $50,000 per employee. The estimated liability for self-insurance claims is initially recorded in the year in which the event of loss occurs and may be subsequently adjusted based upon new information and cost estimates. Reserves for losses represent estimates of reported losses and estimates of incurred but not reported losses based on past and current experience. Actual claims paid and settled may differ, perhaps significantly, from the provision for losses. This adds uncertainty to the estimated reserves for losses. Accordingly, it is at least possible that the ultimate settlement of losses may vary significantly from the amounts included in the financial statements. As part of this plan, the Company recognized expenses totaling $169,000 and $260,000 for the three months ended June 30, 2019 and 2018, respectively. The Company recognized expenses totaling $458,000 and $500,000 for the six months ended June 30, 2019 and 2018, respectively. The Company had an accrual of $62,000 as June 30, 2019, which represents the historical estimate of future claims to be recognized for claims incurred prior to the period. The Company believes that its present insurance coverage and reserves are sufficient to cover currently estimated exposures, but there can be no assurance that the Company will not incur liabilities in excess of recorded reserves or in excess of its insurance limits. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 8. Revenue Recognition The primary sources of revenue for the Company are as follows: revenue from contracts with customers which includes commissions and fees, principal transactions, and advisory fees as well as other income which includes margin interest, marketing, and distribution fees. The recognition and measurement of revenue is based on the assessment of individual contract terms. The amount of revenue recognized by the Company is based on the consideration specified in contracts with its clients. The Company recognizes revenue when a performance obligation is satisfied over time as the services are performed or at a point in time depending on the nature of the services provided as further detailed below. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company’s progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. For the three months and six months ended June 30, 2019 and 2018, there were no costs capitalized related to obtaining or fulfilling a contract with a customer, and thus the Company has no balances for contract assets or contract liabilities. Categorization of Revenue by Service The following table presents the major revenue categories and when each category is recognized (unaudited): Three Months Ended Six Months Ended June 30, Revenue Category 2019 2018 2019 2018 Timing of Recognition Trading Execution and Clearing Services Commissions and fees $ 2,303,000 $ 2,376,000 $ 4,105,000 $ 5,033,000 Recorded trade date Principal transactions $ 1,766,000 $ 2,263,000 $ 3,438,000 $ 5,204,000 Recorded trade date Advisory fees and additional income $ 209,000 $ 162,000 $ 392,000 $ 206,000 Recorded as earned Other Income Margin interest, marketing and distribution fees Margin interest $ 2,037,000 $ 1,876,000 $ 4,103,000 $ 3,511,000 Recorded as earned 12b1 fees 746,000 811,000 1,452,000 1,711,000 Recorded as earned Total Margin interest, marketing and distribution fees $ 2,783,000 $ 2,687,000 $ 5,555,000 $ 5,222,000 Total Revenue $ 7,061,000 $ 7,488,000 $ 13,490,000 $ 15,665,000 The following table presents each revenue category and its related performance obligation: Revenue Stream Performance Obligation Commissions and fees, Principal transactions, Advisory fees and additional income Provide security trading services to customer and act as agent Margin interest, marketing and distribution fees n/a The following table presents a breakdown of the Company’s revenue between the amounts attributed to the retail customer accounts that were originally part of Siebert (“Legacy Siebert”) vs. the retail customer accounts acquired from StockCross (“StockCross accounts”) (unaudited): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenue from Margin interest, marketing and distribution fees: Margin interest, marketing and distribution fees – Legacy Siebert $ 2,440,000 $ 2,312,000 $ 4,885,000 $ 4,640,000 Margin interest, marketing and distribution fees – StockCross accounts 343,000 375,000 670,000 582,000 Total Revenue from Margin interest, marketing and distribution fees $ 2,783,000 $ 2,687,000 $ 5,555,000 $ 5,222,000 Revenue from Commissions and fees: Commissions and fees – Legacy Siebert $ 1,981,000 $ 2,026,000 $ 3,499,000 $ 3,964,000 Commissions and fees – StockCross accounts 322,000 350,000 606,000 1,069,000 Total Revenue from Commissions and fees $ 2,303,000 $ 2,376,000 $ 4,105,000 $ 5,033,000 Revenue from Principal transactions: Principal transactions – Legacy Siebert $ 474,000 $ 505,000 $ 915,000 $ 1,077,000 Principal transactions – StockCross accounts 1,292,000 1,758,000 2,523,000 4,127,000 Total Revenue from Principal transactions $ 1,766,000 $ 2,263,000 $ 3,438,000 $ 5,204,000 Additional Revenue: Advisory fees – Legacy Siebert 193,000 138,000 361,000 171,000 Interest – Legacy Siebert 16,000 24,000 31,000 35,000 Total Revenue $ 7,061,000 $ 7,488,000 $ 13,490,000 $ 15,665,000 |
Provision for Income Tax
Provision for Income Tax | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Tax | 9. Provision for Income Tax Provision for income tax consists of the following: Current income tax expense, which represents the amount of federal tax and state and local tax currently payable, including interest and penalties and amounts accrued for unrecognized tax benefits, if any, and; Deferred income tax, which represents the net change in the deferred tax assets balance during the year, including any change in the valuation allowance of the deferred tax assets, if any. There was no change in the valuation allowance of the deferred tax assets for the three and six months ended June 30, 2019 and 2018, respectively. As of June 30, 2019 and December 31, 2018, the Company had $348,000 and $79,000 of income taxes receivable, respectively, which are included in prepaid expenses and other assets on the condensed consolidated statements of financial condition. The following table presents the components of provision for income tax as of the periods indicated (unaudited): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Current income tax expense / (benefit) Federal $ (69,000 ) $ 298,000 $ 134,000 $ 570,000 State 106,000 (161,000 ) 182,000 (20,000 ) 37,000 137,000 316,000 550,000 Deferred income tax Federal 264,000 — 311,000 — State 148,000 — 191,000 — 412,000 — 502,000 — Total Provision for income tax $ 449,000 $ 137,000 $ 818,000 $ 550,000 Effective Tax Rate For interim financial reporting, the Company estimates the effective tax rate for tax jurisdictions which is applied to the year to date income before provision for income tax. For the three months ended June 30, 2019 and 2018, the Company’s effective tax rate was 31% and 7%, respectively. For the six months ended June 30, 2019 and 2018, the Company’s effective tax rate was 29% and 14%, respectively. As of December 31, 2018, the Company recorded an income tax benefit related to the recognition of deferred tax assets of $5,576,000. The increase in the effective tax rate in 2019 was due to an increase in deferred income tax expense corresponding to the decrease in the deferred tax assets. Deferred income tax expense was $194,000 and $502,000 for the three months and six months ended June 30, 2019, respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10. Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted average of the number of outstanding common shares during the period. The Company had net income of $992,000 for the three months ended June 30, 2019 as compared to net income of $1,799,000 for the three months ended June 30, 2018. The Company had net income of $1,998,000 for the six months ended June 30, 2019 as compared to net income of $3,492,000 for the six months ended June 30, 2018. |
Related Party Disclosures
Related Party Disclosures | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Disclosures | 11. Related Party Disclosures StockCross StockCross and the Company are under common ownership and StockCross serves as one of the two clearing brokers for the Company. StockCross has a clearing agreement with MSCO in which StockCross passes through all revenue and charges MSCO for related clearing expenses. Outside of the clearing agreement, MSCO has an expense sharing agreement with StockCross for its Beverly Hills and Jersey City offices and StockCross pays some vendors for miscellaneous expenses which it passes through to MSCO. As of June 30, 2019 and December 31, 2018, MSCO had receivables from StockCross totaling approximately $1.6 million and $1.3 million, respectively, consisting of financing for inventory positions, the net monthly clearing fees StockCross owes MSCO, and a clearing deposit. As of December 31, 2018, MSCO had a payable to StockCross totaling $46,000. In January 2019, the Company purchased approximately 15% of StockCross’ outstanding shares and in July 2019 the Company entered into a binding letter of intent to purchase the remaining 85% of StockCross. For the three months and six months ended June 30, 2019, the earnings recognized from the Company’s 15% investment in StockCross was approximately $15,000 and $54,000, respectively. Please see Item 4. Financial Statements and Supplementary Data – “Note 6 – Equity Method Investments” for additional detail on the transaction with StockCross. KCA KCA is an affiliate of the Company and StockCross. To gain efficiencies and economies of scale with billing and administrative functions, KCA serves as a paymaster for the Company and StockCross for compensation and benefits expenses, the entirety of which KCA passes through to the Company and StockCross proportionally. In addition, KCA has purchased the naming rights for the Company for the Company to use. PWC PWC brokers the insurance policies for related parties. Revenue for PWC from related parties was $35,000 and $64,000 for the three months and six months ended June 30, 2019, respectively. Revenue for PWC from related parties was $45,000 for the six months ended June 30, 2018. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events As reported in a current report on Form 8-K filed on July 19, 2019, the Company signed a binding letter of intent to purchase the remaining 85% of StockCross. As of the date of the filing of this report, the Company has not finalized the terms of the transaction or incurred any acquisition-related expenses. Other than the above, there have been no additional material subsequent events that have occurred during such period that would require disclosure in this report or would be required to be recognized in the financial statements as of June 30, 2019. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Presentation The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the U.S. (GAAP) for interim financial information with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete annual financial statements. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring entries) necessary to fairly present such interim results. Interim results are not necessarily indicative of the results of operations which may be expected for a full year or any subsequent period. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K”). The condensed consolidated financial statements include the accounts of Siebert and its wholly-owned subsidiaries and upon consolidation, all intercompany balances and transactions are eliminated. The U.S. dollar is the functional currency of the Company. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current year’s presentation. These reclassifications have no effect on previously reported net income or total assets or total liabilities. |
Equity Method Investments | Equity Method Investments Investments in which the Company has the ability to exercise significant influence, but does not control, are accounted for under the equity method of accounting and are included in the equity method investment in related party asset in the condensed consolidated statements of financial condition. Under this method of accounting, the Company’s share of the net earnings or losses of the investee is presented before the income before provision for income tax on the condensed consolidated statements of operations. The Company evaluates its equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. |
Receivables from and Payable _2
Receivables from and Payable to Brokers, Dealers and Clearing Organizations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
Schedule of Amounts Receivable | Amounts receivable from / payable to brokers, dealers and clearing organizations consisted of the following as of the periods indicated: As of June 30, 2019 (unaudited) As of December 31, 2018 Receivables from clearing and other brokers National Financial Services (“NFS”) $ 1,632,000 $ 1,664,000 StockCross 631,000 311,000 Total Receivables from clearing and other brokers $ 2,263,000 $ 1,975,000 Receivable from related party StockCross $ 1,000,000 $ 1,000,000 Total Receivable from related party $ 1,000,000 $ 1,000,000 Due to clearing brokers and related parties PWC $ 15,000 $ — MSCO 2,000 29,000 StockCross — 46,000 NFS — 58,000 Total Due to clearing brokers and related parties $ 17,000 $ 133,000 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Leases | The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the condensed consolidated statements of financial condition. As of June 30, 2019 (unaudited) As of December 31, 2018 Assets Lease right-of-use assets $ 2,589,000 — Liabilities Lease liabilities $ 2,895,000 — |
Schedule of Additional Information Related to Leases | The Company determined a discount rate of 5.0% would approximate the Company’s cost to obtain financing given its size, growth, and risk profile. Lease Term and Discount Rate Weighted average remaining lease term – operating leases (in years) 3.7 Weighted average discount rate – operating leases 5.0 % |
Schedule of Lease Costs and Other Lease Information | The following table represents lease costs and other lease information. The Company elected to separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost $ 182,000 $ 330,000 Short-term lease cost 120,000 240,000 Variable lease cost 18,000 45,000 Sublease income — — Total lease cost $ 320,000 $ 615,000 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 207,000 $ 357,000 Lease right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 535,000 $ 2,215,000 |
Schedule of Maturities of Lease Liabilities | Future annual minimum payments for operating leases with initial terms of greater than one year as of June 30, 2019 were as follows: Year Amount 2019 $ 501,000 2020 942,000 2021 729,000 2022 489,000 2023 468,000 2024 39,000 Thereafter — Remaining balance of lease payments 3,168,000 Difference between undiscounted cash flows and discounted cash flows 273,000 Lease liabilities $ 2,895,000 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Supplemental Operations Information | Below is a table showing illustrating the summary from the condensed consolidated statements of operations for StockCross for the period indicated (unaudited): Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Revenue $ 3,781,000 $ 7,795,000 Gross profit $ 273,000 $ 558,000 Net income $ 99,000 $ 345,000 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Major Revenue Categories | The following table presents the major revenue categories and when each category is recognized (unaudited): Three Months Ended Six Months Ended June 30, Revenue Category 2019 2018 2019 2018 Timing of Recognition Trading Execution and Clearing Services Commissions and fees $ 2,303,000 $ 2,376,000 $ 4,105,000 $ 5,033,000 Recorded trade date Principal transactions $ 1,766,000 $ 2,263,000 $ 3,438,000 $ 5,204,000 Recorded trade date Advisory fees and additional income $ 209,000 $ 162,000 $ 392,000 $ 206,000 Recorded as earned Other Income Margin interest, marketing and distribution fees Margin interest $ 2,037,000 $ 1,876,000 $ 4,103,000 $ 3,511,000 Recorded as earned 12b1 fees 746,000 811,000 1,452,000 1,711,000 Recorded as earned Total Margin interest, marketing and distribution fees $ 2,783,000 $ 2,687,000 $ 5,555,000 $ 5,222,000 Total Revenue $ 7,061,000 $ 7,488,000 $ 13,490,000 $ 15,665,000 |
Schedule of Performance Obligation | The following table presents each revenue category and its related performance obligation: Revenue Stream Performance Obligation Commissions and fees, Principal transactions, Advisory fees and additional income Provide security trading services to customer and act as agent Margin interest, marketing and distribution fees n/a |
Disaggregation of revenue | The following table presents a breakdown of the Company’s revenue between the amounts attributed to the retail customer accounts that were originally part of Siebert (“Legacy Siebert”) vs. the retail customer accounts acquired from StockCross (“StockCross accounts”) (unaudited): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenue from Margin interest, marketing and distribution fees: Margin interest, marketing and distribution fees – Legacy Siebert $ 2,440,000 $ 2,312,000 $ 4,885,000 $ 4,640,000 Margin interest, marketing and distribution fees – StockCross accounts 343,000 375,000 670,000 582,000 Total Revenue from Margin interest, marketing and distribution fees $ 2,783,000 $ 2,687,000 $ 5,555,000 $ 5,222,000 Revenue from Commissions and fees: Commissions and fees – Legacy Siebert $ 1,981,000 $ 2,026,000 $ 3,499,000 $ 3,964,000 Commissions and fees – StockCross accounts 322,000 350,000 606,000 1,069,000 Total Revenue from Commissions and fees $ 2,303,000 $ 2,376,000 $ 4,105,000 $ 5,033,000 Revenue from Principal transactions: Principal transactions – Legacy Siebert $ 474,000 $ 505,000 $ 915,000 $ 1,077,000 Principal transactions – StockCross accounts 1,292,000 1,758,000 2,523,000 4,127,000 Total Revenue from Principal transactions $ 1,766,000 $ 2,263,000 $ 3,438,000 $ 5,204,000 Additional Revenue: Advisory fees – Legacy Siebert 193,000 138,000 361,000 171,000 Interest – Legacy Siebert 16,000 24,000 31,000 35,000 Total Revenue $ 7,061,000 $ 7,488,000 $ 13,490,000 $ 15,665,000 |
Provision for Income Tax (Table
Provision for Income Tax (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Taxes | The following table presents the components of provision for income tax as of the periods indicated (unaudited): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Current income tax expense / (benefit) Federal $ (69,000 ) $ 298,000 $ 134,000 $ 570,000 State 106,000 (161,000 ) 182,000 (20,000 ) 37,000 137,000 316,000 550,000 Deferred income tax Federal 264,000 — 311,000 — State 148,000 — 191,000 — 412,000 — 502,000 — Total Provision for income tax $ 449,000 $ 137,000 $ 818,000 $ 550,000 |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Details) - $ / shares | Jul. 19, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Common stock, par value | $ 0.01 | $ 0.01 | |
Subsequent Event [Member] | |||
Percentage of remaining interest in StockCross purchased under binding letter of intent | 85.00% |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Lease right-of-use assets | $ 2,589,000 | |
Lease liabilities | $ 2,895,000 |
Capital Requirements (Details)
Capital Requirements (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | $ 22,704,000 | $ 18,177,000 | ||
Cash and cash equivalents | 4,667,000 | 7,229,000 | $ 6,686,000 | $ 3,765,000 |
MSCO [Member] | ||||
Net capital | 7,000,000 | 8,900,000 | ||
Minimum net capital required | 250,000 | 250,000 | ||
Net capital in excess of minimum requirement | $ 6,800,000 | $ 8,700,000 |
Receivables from and Payable _3
Receivables from and Payable to Brokers, Dealers and Clearing Organizations (Schedule of Amounts Receivable) (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Receivables from clearing and other brokers | ||
National Financial Services ("NFS") | $ 1,632,000 | $ 1,664,000 |
StockCross | 631,000 | 311,000 |
Total Receivables from clearing and other brokers | 2,263,000 | 1,975,000 |
Receivable from related party | ||
StockCross | 1,000,000 | 1,000,000 |
Total Receivable from related party | 1,000,000 | 1,000,000 |
Due to clearing brokers and related parties | ||
PWC | 15,000 | |
MSCO | 2,000 | 29,000 |
StockCross | 46,000 | |
NFS | 58,000 | |
Total Due to clearing brokers and related parties | $ 17,000 | $ 133,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Lessee Disclosure [Abstract] | ||||
Rent and related operating expenses | $ 320,000 | $ 247,000 | $ 615,000 | $ 489,000 |
Leases (Schedule of Supplementa
Leases (Schedule of Supplemental Balance Sheet Information Related to Leases) (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Lease right-of-use assets | $ 2,589,000 | |
Liabilities | ||
Lease liabilities | $ 2,895,000 |
Leases (Schedule of Additional
Leases (Schedule of Additional Information Related to Leases) (Details) | Jun. 30, 2019 |
Lessee Disclosure [Abstract] | |
Weighted average remaining lease term - Operating leases (in years) | 3 years 8 months 12 days |
Weighted average discount rate - Operating leases | 5.00% |
Leases (Schedule of Lease Costs
Leases (Schedule of Lease Costs and Other Lease Information) (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Operating lease | ||
Operating lease cost | $ 182,000 | $ 330,000 |
Short-term lease cost | 120,000 | 240,000 |
Variable lease cost | 18,000 | 45,000 |
Sublease income | ||
Total lease cost | 320,000 | 615,000 |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | 207,000 | 357,000 |
Lease right-of-use assets obtained in exchange for new lease liabilities | ||
Lease right-of-use assets obtained in exchange for new lease liabilities - operating leases | $ 535,000 | $ 2,215,000 |
Leases (Schedule of Future Mini
Leases (Schedule of Future Minimum Base Rental Payment) (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2019 | $ 501,000 | |
2020 | 942,000 | |
2021 | 729,000 | |
2022 | 489,000 | |
2023 | 468,000 | |
2024 | 39,000 | |
Thereafter | ||
Remaining balance of lease payments | 3,168,000 | |
Difference between undiscounted cash flows and discounted cash flows | 273,000 | |
Lease liabilities | $ 2,895,000 |
Equity Method Investments (Narr
Equity Method Investments (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Earnings of equity method investment | $ 15,000 | $ 54,000 | |||
Investment in related party | $ 3,720,000 | $ 3,720,000 | |||
StockCross [Member] | |||||
Percentage of outstanding shares purchased by company | 15.00% | ||||
Shares purchased | 922,875 | ||||
Per share price | $ 3.97 | $ 3.97 | |||
Investment in related party | $ 3,720,000 | $ 3,720,000 |
Equity Method Investments (Sche
Equity Method Investments (Schedule of Supplemental Operations Information) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue | $ 7,061,000 | $ 7,488,000 | $ 13,490,000 | $ 15,665,000 |
Net income | 992,000 | $ 1,799,000 | 1,998,000 | $ 3,492,000 |
StockCross [Member] | ||||
Revenue | 3,781,000 | 7,795,000 | ||
Gross profit | 273,000 | 558,000 | ||
Net income | $ 99,000 | $ 345,000 |
Commitments, Contingencies and
Commitments, Contingencies and Other (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Health claim reinsurance limit per employee | $ 50,000 | $ 50,000 | ||
Expense for self-insurance claims | 169,000 | $ 260,000 | 458,000 | $ 500,000 |
Accrual for self-insurance claims | $ 62,000 | $ 62,000 |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Major Revenue Categories) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Trading Execution and Clearing Services | ||||
Commissions and fees | $ 2,303,000 | $ 2,376,000 | $ 4,105,000 | $ 5,033,000 |
Principal transactions | 1,766,000 | 2,263,000 | 3,438,000 | 5,204,000 |
Advisory fees and additional income | 209,000 | 162,000 | 392,000 | 206,000 |
Margin interest, marketing and distribution fees | ||||
Margin interest | 2,037,000 | 1,876,000 | 4,103,000 | 3,511,000 |
12b1 fees | 746,000 | 811,000 | 1,452,000 | 1,711,000 |
Total Margin interest, marketing and distribution fees | 2,783,000 | 2,687,000 | 5,555,000 | 5,222,000 |
Total Revenue | $ 7,061,000 | $ 7,488,000 | $ 13,490,000 | $ 15,665,000 |
Revenue Recognition (Schedule_2
Revenue Recognition (Schedule of Performance Obligation) (Details) | 6 Months Ended |
Jun. 30, 2019 | |
One [Member] | |
Revenue Stream | Commissions and fees, Principal transactions, Advisory fees and additional income |
Performance Obligation | Provide security trading services to customer and act as agent |
Two [Member] | |
Revenue Stream | Margin interest, marketing and distribution fees |
Performance Obligation | n/a |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of revenue) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from Principal transactions | $ 1,766,000 | $ 2,263,000 | $ 3,438,000 | $ 5,204,000 |
Total Revenue from Commissions and fees | 2,303,000 | 2,376,000 | 4,105,000 | 5,033,000 |
Total Revenue from Margin interest, marketing and distribution fees | 2,783,000 | 2,687,000 | 5,555,000 | 5,222,000 |
Total Revenue from Advisory fees | 193,000 | 138,000 | 361,000 | 171,000 |
Total Revenue from Interest | 16,000 | 24,000 | 31,000 | 35,000 |
Total Revenue | 7,061,000 | 7,488,000 | 13,490,000 | 15,665,000 |
Legacy Siebert [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from Advisory fees | 193,000 | 138,000 | 361,000 | 171,000 |
Total Revenue from Interest | 16,000 | 24,000 | 31,000 | 35,000 |
Margin interest, marketing and distribution fees [Member] | Legacy Siebert [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from Margin interest, marketing and distribution fees | 2,440,000 | 2,312,000 | 4,885,000 | 4,640,000 |
Margin interest, marketing and distribution fees [Member] | StockCross accounts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from Margin interest, marketing and distribution fees | 343,000 | 375,000 | 670,000 | 582,000 |
Commissions and fees [Member] | Legacy Siebert [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from Commissions and fees | 1,981,000 | 2,026,000 | 3,499,000 | 3,964,000 |
Commissions and fees [Member] | StockCross accounts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from Commissions and fees | 322,000 | 350,000 | 606,000 | 1,069,000 |
Principal transactions [Member] | Legacy Siebert [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from Principal transactions | 474,000 | 505,000 | 915,000 | 1,077,000 |
Principal transactions [Member] | StockCross accounts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from Principal transactions | $ 1,292,000 | $ 1,758,000 | $ 2,523,000 | $ 4,127,000 |
Provision for Income Tax (Narra
Provision for Income Tax (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate from continuing operations | 31.00% | 7.00% | 29.00% | 14.00% | |
Deferred tax asset | $ 5,576,000 | ||||
Deferred income tax | $ 412,000 | $ 502,000 | |||
Income tax receivables | $ 348,000 | $ 348,000 | $ 79,000 |
Provision for Income Tax (Sched
Provision for Income Tax (Schedule of Income Taxes) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Current income tax expense/(benefit) | ||||
Federal | $ (69,000) | $ 298,000 | $ 134,000 | $ 570,000 |
State | 106,000 | (161,000) | 182,000 | (20,000) |
Current income tax expense | 37,000 | 137,000 | 316,000 | 550,000 |
Deferred income tax | ||||
Federal | 264,000 | 311,000 | ||
State | 148,000 | 191,000 | ||
Deferred income tax | 412,000 | 502,000 | ||
Total provision for income tax | $ 449,000 | $ 137,000 | $ 818,000 | $ 550,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net Income | $ 992,000 | $ 1,799,000 | $ 1,998,000 | $ 3,492,000 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||||||
Due from Stockcross to MSCO | $ 631,000 | $ 631,000 | $ 311,000 | |||
Percentage of purchase outstanding shares of StockCross | 15.00% | |||||
Earnings of equity method investment | 15,000 | 54,000 | ||||
PWC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party revenues | 35,000 | 64,000 | $ 45,000 | |||
MSCO [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due from Stockcross to MSCO | $ 1,600,000 | $ 1,600,000 | 1,300,000 | |||
Payable to StockCross | $ 46,000 |
Subsequent Events (Details)
Subsequent Events (Details) | Jul. 19, 2019 |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Percentage of remaining interest in StockCross purchased under binding letter of intent | 85.00% |