Related Party Disclosures

6 Months Ended

Jun. 30, 2023

Related Party Disclosures [Abstract]

Related Party Disclosures

23. Related Party Disclosures

KCA

KCA is an affiliate of the Company and is under common ownership with the Company. To gain efficiencies and economies of scale with billing and administrative functions, KCA serves as a paymaster for the Company for payroll and related functions, the entirety of which KCA passes through to the subsidiaries of the Company proportionally.

KCA owns a license from the Muriel Siebert Estate / Foundation to use the names “Muriel Siebert & Co., Inc.” and “Siebert” within business activities, which expires in 2025. KCA passed through to the Company its cost of $15,000 for the use of these names in both the three ended June 30, 2023 and 2022, respectively, and $30,000 for the use of these names in both the six months ended June 30, 2023 and 2022.

KCA has earned no profit for providing any services to the Company as KCA passes through any revenue or expenses to the Company’s subsidiaries for the three and six months ended June 30, 2023 and 2022. As of June 30, 2023 and December 31, 2022, the Company had a payable to KCA for miscellaneous expenses of $6,000 and $4,000, respectively, which are in the line item “Accounts payable and accrued liabilities” on the statements of financial condition.

PW

PW brokers the insurance policies for related parties. Revenue for PW from related parties was $69,000 and $20,000 for the three months ended June 30, 2023 and 2022, respectively. Revenue for PW from related parties was $91,000 and $95,000 for the six months ended June 30, 2023 and 2022, respectively.

Gloria E. Gebbia, John J. Gebbia, and Gebbia Family Members

On March 31, 2022, Gloria E. Gebbia, a director of the Company, exchanged approximately $2.9 million of her notes payable to the Company for 24% of the outstanding and issued membership interests in RISE.

The Company has entered into various notes payable with Gloria E. Gebbia. The Company had interest expense related to these notes payable of $0 and $31,000 for the three months ended June 30, 2023 and 2022, respectively. The Company had interest expense related to these notes payable of $0 and $101,000 for the six months ended June 30, 2023 and 2022, respectively.

Gloria E. Gebbia had extended loans to certain Company employees for the purchase of the Company’s shares. These transactions have not materially impacted the Company’s financial statements.

The sons of Gloria E. Gebbia and John J. Gebbia hold executive positions within the Company’s subsidiaries and their compensation was in aggregate $606,000 and $631,000 for the three months ended June 30, 2023 and 2022, respectively. The compensation for the sons of Gloria E. Gebbia and John J. Gebbia was in aggregate $1,130,000 and $1,074,000 for the six months ended June 30, 2023 and 2023, respectively. Part of their compensation includes performance-based payments related to key revenue streams.

On May 22, 2023, Gloria E. Gebbia issued a warrant to BCW Securities LLC, a Delaware limited liability company, to purchase 403,780 shares of common stock of the Company held by Gloria E. Gebbia at an exercise price of $2.15 per share.

On May 24, 2023, the Board of Directors of the Company appointed John J. Gebbia as Chairman of the Board and Chief Executive Officer.

Gebbia Sullivan County Land Trust

The Company operates on a month-to-month lease agreement for its branch office in Omaha, Nebraska with the Gebbia Sullivan County Land Trust, the trustee of which is a member of the Gebbia Family. For both the three months ended June 30, 2023 and 2022, rent expense was $15,000 for this branch office. For both the six months ended June 30, 2023 and 2022, rent expense was $30,000 for this branch office.

Tigress and Hedge Connection

The Company entered into various agreements and subsequent terminations with Tigress and Hedge Connection. Refer to Note 3 – Transactions with Tigress and Hedge Connection and Note 12– Equity Method Investment in Related Party for further detail.

RISE

During the year ended December 31, 2022, RISE issued and Siebert sold membership interests of RISE to Siebert employees, directors and affiliates, refer to Note 4 – RISE for further detail. RISE entered into a clearing arrangement with MSCO and deposited a clearing fund escrow deposit of $50,000 to MSCO and had excess cash of approximately $1.3 million in its brokerage account at MSCO as of June 30, 2023.