Related Party Transactions

12 Months Ended

Dec. 31, 2021

Related Party Transactions [Abstract]

Related Party Transactions

D. Related Party Transactions

At December 31, 2021 and 2020, the Company had an investment of $2,859,939 and $ 4,724,290, respectively, in The Gabelli U.S. Treasury Money Market Fund advised by Gabelli Funds, LLC, which is an affiliate of the Company. The amount is recorded in cash and cash equivalents in the Consolidated Statements of Financial Condition. Income earned from this investment totaled $232 and $39,713 in 2021 and 2020, respectively, and is included in dividends and interest revenues in the Consolidated Statements of Operations.

In 2021 and 2020, the Company earned $1,243,412 and $2,582,914 or approximately, 55% and 64%, respectively, of its commission revenue from transactions executed on behalf of funds advised by Gabelli Funds, LLC., (“Gabelli Funds”) and private wealth management clients advised by GAMCO Asset Management Inc., (“GAMCO Asset”), each affiliates of the Company.

The Company participated as agent in the secondary offerings of the GAMCO Global Gold, Natural Resources & Income Trust (“GGN”).  Pursuant to sales agreements between the parties, the Company earned sales manager fees related to this offering of $334,825 during 2020. Sales manager fees are separately disclosed in the Consolidated Statements of Operations.

The Company participated in the secondary offerings of the preferred stock of affiliated closed end funds during 2021 and 2020 as participants in the underwriting syndicate and selling groups earning $702,035 and $16,000, respectively.

AC has a sublease agreement with GBL that currently expires on April 1, 2020, which is subject to annual renewal. AC allocates this expense to the Company based on the percentage of square footage occupied by the Company’s employees (including pro rata allocation of common space).  Pursuant to the sublease, AC and the Company shall pay a monthly fixed lease amount for the twelve month contractual period. For the years ended December 31, 2021 and 2020, the Company paid $80,518 and $105,617, respectively, under the sublease agreement. These amounts are included within occupancy and equipment expenses on the Consolidated Statements of Operations. At December 31, 2021 a $500,000 placement fee was due from the Gabelli Equity Trust and included in a receivable in other assets.