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 nine months ended September 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 September 30,				Nine Months Ended September 30,
Revenue Category	2019		2018		2019		2018		Timing of Recognition
Trading Execution and Clearing Services
Commissions and fees	$	1,925,000	$	2,347,000	$	6,030,000	$	7,380,000	Recorded trade date
Principal transactions		2,041,000		2,634,000		5,479,000		7,838,000	Recorded trade date
Advisory fees and additional income		234,000		172,000		626,000		378,000	Recorded as earned

Other Income
Margin interest, marketing and distribution fees
Margin interest		2,151,000		1,943,000		6,254,000		5,454,000	Recorded as earned
12b1 fees		793,000		788,000		2,245,000		2,499,000	Recorded as earned
Total Margin interest, marketing and distribution fees		2,944,000		2,731,000		8,499,000		7,953,000

Total Revenue	$	7,144,000	$	7,884,000	$	20,634,000	$	23,549,000

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

Disaggregation of Revenue – Legacy Siebert vs. StockCross Accounts

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 September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenue from Margin interest, marketing and distribution fees:
Margin interest, marketing and distribution fees – Legacy Siebert	$	2,566,000	$	2,409,000	$	7,451,000	$	7,049,000
Margin interest, marketing and distribution fees – StockCross accounts		378,000		322,000		1,048,000		904,000
Total Revenue from Margin interest, marketing and distribution fees		2,944,000		2,731,000		8,499,000		7,953,000

Revenue from Commissions and fees:
Commissions and fees – Legacy Siebert		1,544,000		1,950,000		5,043,000		5,914,000
Commissions and fees – StockCross accounts		381,000		397,000		987,000		1,466,000
Total Revenue from Commissions and fees		1,925,000		2,347,000		6,030,000		7,380,000

Revenue from Principal transactions:
Principal transactions – Legacy Siebert		582,000		437,000		1,496,000		1,514,000
Principal transactions – StockCross accounts		1,459,000		2,197,000		3,983,000		6,324,000
Total Revenue from Principal transactions		2,041,000		2,634,000		5,479,000		7,838,000

Additional Revenue:
Advisory fees – Legacy Siebert		211,000		138,000		572,000		309,000
Interest – Legacy Siebert		23,000		34,000		54,000		69,000

Total Revenue	$	7,144,000	$	7,884,000	$	20,634,000	$	23,549,000