8. Investment In and Advances to Affiliates:

3 Months Ended

Mar. 31, 2015

Notes to Financial Statements

8. Investment In and Advances to Affiliates:

Siebert, Brandford, Shank Financial., L.L.C. (“SBSF”)

Siebert and two individuals (the “Principals”) formed SBS, a wholly-owned subsidiary of its holding company parent SBSF, to succeed to the tax-exempt underwriting business of the Siebert Brandford Shank division of Siebert see Note 1 for a discussion at the contribution of the SBS equity interests into SBSF in connection with the sale by the Company of its SCM assets in November 2014. The agreement with the principals provide that profits will be shared 51% to the principals and 49% to Siebert. Income or loss from SBS is considered to be integral to Siebert’s operations and material to the results of operations.

Summarized financial data of SBSF and SBS is set forth below.

	SBSF		SBS
	March 31,		March 31,
	2015		2014
Total assets, including secured demand note of $1,200,000 due from Siebert	$	26,480,000
Total liabilities, including subordinated liabilities of $1,200,000 due to Siebert		11,972,000
Total members’ capital		14,508,000
Regulatory minimum net capital requirement		250,000
Total revenues		4,049,000	7,735,000
Net (loss) Income		(1,521,000)	1,481,000

Siebert charged SBS $25,000 during the three months ended March 31, 2015 and 2014, for general and administrative services, which Siebert believes approximates the cost of furnishing such services.

Siebert’s share of SBSF’s consolidated net loss for the three months ended March 31, 2015 amounted to $688,000 net of interest income on the receivable of  $56,000 from the SCM sale to SBS. Siebert’s share of SBS’ net income for the three months ended March 31, 2014 amounted to $726,000.

Siebert made a $14,000 advance, net of collection, to SBS during the three months ended March 31, 2015. Siebert received a $16,000 distribution from SBSF during the three months ended March 31, 2015 and Siebert’s share of undistributed earnings from SBSF amounted to $6.7 million at March 31, 2015. Such amount may not be immediately available for distribution to Siebert for various reasons including the amount of SBSF’s available cash, the provisions of the agreement between Siebert and the principals and SBSF’s continued compliance with its regulatory net capital requirements.

SBS Financial Products Company, LLC (“SBSFPC”)

Pursuant to the terms of an Operating Agreement, the Company and each of the Principals owned a 33.33% interest in SBSFPC which engaged in derivatives transactions related to the municipal underwriting business. The Operating Agreement provides that income/(loss) be shared 66.66% by the Principals and 33.33% by the Company. For the three months ended March 31, 2014, SBSFPC had nominal activity and ceased operations in December 2014.