Strategic Initiatives - Siebert Financial Corp. acquired a media and entertainment company as part of its strategic initiatives to diversify and create synergies between its enterprises[17]. - MSCO received approval in May 2022 to expand its clearing services in the U.S., enhancing its core competencies and diversifying its business[22]. - The Company established an Investment Banking and Capital Markets division in Q1 2025, focusing on middle-market clients and hiring experienced professionals for this initiative[41]. - A new advisory committee was established in 2024, including prominent leaders from various industries to provide strategic guidance for growth[51]. - The Company is undertaking a strategic rebranding initiative to enhance its digital presence and offer innovative financial management solutions tailored to diverse clients[53]. - The company is considering strategic acquisitions as part of its growth strategy, which may involve risks related to costs and regulatory approvals[107]. Technology and Innovation - Siebert AdvisorNXT utilizes proprietary robo-advisory technology based on Modern Portfolio Theory to provide automated wealth management solutions[42]. - The Company is developing an enhanced equity management solution to capture new market opportunities amid industry consolidation[31]. - Significant investments in technology include the development of a mobile trading application and upgrades to operational infrastructure[47]. - The company plans to enhance existing products and develop new technologies to meet the evolving needs of clients[106]. - The company is focused on expanding into new markets and demographics through ongoing technology investments[165]. - The company utilizes the NIST Cybersecurity Framework to manage cybersecurity risks and enhance its security posture[139]. Regulatory Compliance - The company is registered as a broker-dealer in 50 states, the District of Columbia, and Puerto Rico, complying with extensive federal and state regulations[55]. - The Dodd-Frank Act has led to significant changes in regulatory expectations, particularly in compliance, risk management, and corporate governance[57]. - Regulation Best Interest requires broker-dealers to act in the best interest of retail customers, impacting the company's sales practices and compliance costs[58][59]. - The company must comply with numerous laws protecting consumer financial information, including the Gramm-Leach-Bliley Act and the California Consumer Protection Act[73]. - The company is subject to extensive government regulation, including compliance with SEC, FINRA, and other regulatory bodies, which could impact operational costs and business conduct[84]. - Regulatory changes may lead to increased costs and limitations on business operations, potentially affecting profitability and capital returns to stockholders[79][82]. Financial Performance - In 2024, earnings per share were $0.33, compared to $0.21 in 2023, reflecting a significant increase[158]. - Net revenues for 2024 were $83.9 million, up from $71.5 million in 2023, indicating a growth of approximately 17%[158]. - Net income rose to $13.3 million in 2024, compared to $7.8 million in 2023, representing an increase of about 70%[158]. - Retail customer net worth increased by 13% to $18.0 billion compared to 2023[162]. - Revenue related to stock borrow/stock loan increased by 19% to $19.2 million compared to 2023[162]. - Revenue from commissions and fees rose by 32% to $9.6 million compared to 2023[162]. Risk Management - The company faces significant competition from various brokerage firms, including zero commission firms, which impacts its market position[54]. - The company faces risks from customer credit defaults, which could lead to significant credit losses[113]. - The brokerage industry is experiencing intense competition, with price wars and lower commission rates impacting revenue[130]. - Economic slowdowns and market volatility could adversely affect Siebert's revenues and operating results[129]. - Interest rate changes are critical to profitability, with lower rates potentially compressing net interest margins[127]. - The company identified risks related to cybersecurity breaches, which could lead to significant remediation costs, legal liabilities, and reputational damage[96]. Operational Insights - The company has 10 branch offices across the U.S. and serves clients globally, with a focus on providing exceptional personal service[19]. - The company reported a material weakness in internal controls over financial reporting, specifically in IT controls and user access, which was remediated by December 31, 2024[105]. - The company relies heavily on information processing and communication systems, and any significant failure could disrupt operations and affect customer obligations[89]. - The company faces risks from third-party platforms for data technology, which are critical for operations and may pose security risks[90]. - The company is subject to net capital requirements that could limit its operational capabilities and growth strategies[88]. Capital and Investments - The company has purchased an additional $50 million in account protection above SIPC coverage, which provides up to $500,000 protection per customer[61]. - The company is subject to minimum net capital requirements under the SEC Uniform Net Capital Rule, ensuring sufficient liquid resources to meet financial obligations[70][71]. - The net capital infusion from Kakaopay was approximately $14.8 million, enhancing the company's regulatory capital[191]. - The company entered into a $20 million revolving credit facility with East West Bank to support strategic initiatives[193]. - Total liabilities decreased to $434,576,000 in 2024, down by $296,515,000 or 40.5% from the previous year[187]. Employee and Culture - As of March 11, 2025, the company had 146 employees, focusing on attracting and retaining skilled professionals across various specialties[75]. - The company emphasizes a culture of service and offers competitive compensation and benefits to attract and retain talent[76]. - Employee compensation and benefits for 2024 were $43,999,000, up by $12,063,000 or 37.9% compared to the prior year[175].

Core Viewpoint - General (Ret.) Laura J. Richardson has joined the Advisory Board of Siebert Financial Corp, enhancing the company's commitment to providing financial services for veterans, military personnel, and underserved communities [1][5]. Company Overview - Siebert Financial Corp is a diversified financial services company that has been a member of the NYSE since 1967, founded by Muriel Siebert, the first woman to own a seat on the NYSE [6][7]. - The company operates through various subsidiaries, offering a full range of brokerage and financial advisory services, including securities brokerage, investment advisory, and insurance offerings [7]. Leadership and Strategic Direction - General Richardson's extensive military background and leadership experience are expected to significantly benefit Siebert, aligning with the company's mission to deliver innovative financial solutions [2][5]. - CEO John J. Gebbia emphasized that Richardson's national security and diplomacy experience will help expand services in military and veteran affairs, international markets, and women's financial initiatives [2][5]. Commitment to Military and Veteran Community - Kaj Larsen, Head of Military Investment at Siebert, highlighted that Richardson's appointment is a strong statement of the company's commitment to serving veterans and active-duty personnel, addressing their unique financial needs [5]. - General Richardson expressed her intention to work with Siebert to enhance financial opportunities for veterans, women, and those seeking financial independence [4]. Advisory Board Composition - General Richardson joins a prestigious Advisory Board that includes notable figures from finance, sports, and entertainment, such as international recording artist Akon and NFL Pro Brandon Marshall [4].

Core Viewpoint - Siebert Financial Corp. has launched Siebert Investment Banking to cater to middle-market clients often overlooked by larger financial institutions, led by experienced professionals Kimberly Boulmetis and Ajay Asija [1][3]. Group 1: Company Expansion - Siebert Investment Banking will focus on tailored solutions for underserved companies in financial services, including FinTech, depository, and specialty finance, with plans to expand into blockchain and digital assets [2]. - The new division will leverage Siebert's extensive retail distribution network in addition to existing institutional channels, aiming to provide certainty of execution in equity and debt financings [2]. Group 2: Leadership and Expertise - Ajay Asija brings over 25 years of investment banking experience, having advised on over $90 billion in transactions at firms like Lehman Brothers and J.P. Morgan, and recently served as CFO of BM Technologies [4]. - Kimberly Boulmetis, with over 25 years in debt capital markets, previously led U.S. Financial Institutions for the DCM Group at MUFG, focusing on innovative strategic and financing solutions for financial institutions [5][6]. Group 3: Strategic Vision - CEO John J. Gebbia Sr. highlighted that investment banking is a natural extension of Siebert's commitment to providing best-in-class financial solutions, with Asija and Boulmetis' expertise crucial for developing a strong platform [3]. - Boulmetis expressed excitement about joining Siebert, emphasizing the firm's commitment to enhancing client value through its current platform and future developments [7].

Core Viewpoint - Siebert Financial Corp. has launched Siebert Investment Banking to cater to middle-market clients often neglected by larger financial institutions, led by experienced professionals Kimberly Boulmetis and Ajay Asija [1][3]. Group 1: Company Expansion - Siebert Investment Banking will focus on tailored solutions for underserved companies in financial services, including FinTech, depository, and specialty finance, with plans to expand into blockchain and digital assets [2]. - The new division will leverage Siebert's extensive retail distribution network in addition to existing institutional channels, aiming to provide certainty of execution in equity and debt financings [2]. Group 2: Leadership and Expertise - Ajay Asija has over 25 years of investment banking experience, having advised on transactions exceeding $90 billion at firms like Lehman Brothers and J.P. Morgan, and recently served as CFO of BM Technologies [4]. - Kimberly Boulmetis, with over 25 years in debt capital markets, previously led U.S. Financial Institutions for the DCM Group at MUFG, focusing on innovative strategic and financing solutions for financial institutions [5][6]. Group 3: Strategic Vision - CEO John J. Gebbia Sr. highlighted that investment banking is a natural extension of Siebert's commitment to providing best-in-class financial solutions, emphasizing the importance of Asija and Boulmetis' expertise in developing a strong platform [3]. - The investment banking division aims to deliver high-quality advisory services to middle-market clients, ensuring they receive the same level of expertise as larger firms [5].

Core Insights - Siebert Stock Plan Services (Siebert.SPS) has strengthened its leadership team with the addition of Daniel Coyle and Hunter Sattich, enhancing its capacity to provide customized equity compensation solutions for businesses of all sizes [1][4]. Company Overview - Siebert.SPS focuses on delivering tailored equity compensation solutions, emphasizing technology-driven platforms and exceptional customer service to streamline stock plan administration and maximize participant engagement [5]. - The company aims to support a diverse range of clients, from emerging firms to established enterprises, with personalized and innovative services that larger providers may not offer [2][4]. Leadership Expertise - Hunter Sattich, a Certified Equity Professional with over 30 years of experience, is recognized for optimizing equity plan processes and enhancing client outcomes [2][3]. - Daniel Coyle brings over 20 years of finance and compensation experience, specializing in creating strategies that align operational efficiencies with clients' strategic goals [3][4]. Strategic Importance - The addition of Coyle and Sattich is seen as a pivotal step in Siebert's mission to redefine equity compensation solutions and expand its market reach [4][5]. - The leadership team emphasizes a client-first mentality, aiming to address gaps in service that many businesses face with larger providers [3][4].

Core Viewpoint - Siebert Financial Corp. has launched a new Capital Markets Group to expand its presence in institutional markets while enhancing retail growth, led by Randy Billhardt, a seasoned executive with over 30 years of experience [1][4]. Company Overview - Siebert Financial Corp. is a diversified financial services company and has been a member of the NYSE since 1967, when Muriel Siebert became the first woman to own a seat on the NYSE [5]. - The company operates through various subsidiaries, providing a full range of brokerage and financial advisory services, including securities brokerage, investment advisory, and insurance offerings [6]. Leadership and Expertise - Randy Billhardt, the new Head of Capital Markets Group, has over 15 years of experience in capital markets and a proven track record in unsecured notes and preferred stock issuance [2]. - Under Billhardt's leadership, the Capital Markets Group aims to leverage Siebert's retail distribution network to deliver innovative financial products and enhance institutional capabilities [3]. Strategic Goals - The launch of the Capital Markets Group aligns with Siebert's commitment to innovation and client success, reflecting a forward-thinking strategy to expand its institutional platform [4]. - The group will focus on enhancing offerings such as IPO underwriting, participation in secondary offerings, and offering baby bonds [4].

Core Perspective - Siebert Financial Corp. has launched Siebert.Valor, a Financial Technology initiative aimed at democratizing wealth-building for Active Duty Military, Veterans, Law Enforcement, and First Responders [1][4] Group 1: Initiative Overview - Siebert.Valor is a result of Siebert's acquisition of Guild Financial, which focuses on providing financial education and investment services to the military community [2][3] - Kaj Larsen, co-founder of Guild Financial, will lead the Siebert.Valor initiative, leveraging his expertise in both military and financial sectors [2][4] Group 2: Mission and Values - The initiative aims to honor and serve military service members, veterans, and their families by providing tailored financial education and investment services [3][4] - Siebert.Valor seeks to extend financial literacy and opportunity across underserved communities, aligning with the legacy of Muriel Siebert, the first woman to own a seat on the New York Stock Exchange [3][6] Group 3: Community Engagement - Siebert.Valor pre-launched by sponsoring events during Fleet Week in Miami, including financial literacy talks and community activities [6] - The initiative embodies values of service, integrity, and commitment, aiming to make the American Dream accessible to clients [4][6] Group 4: Future Directions - In addition to leading Siebert.Valor, Kaj Larsen will also play a significant role in Gebbia Entertainment, focusing on content production for financial education [7] - Gebbia Entertainment will support Siebert Financial with entertainment investments across various projects [7]

Core Viewpoint - Siebert Financial Corp. has launched Siebert.Valor, a Financial Technology initiative aimed at democratizing wealth-building for Active Duty Military, Veterans, Law Enforcement, and First Responders [1][3]. Group 1: Initiative Overview - Siebert.Valor is a continuation of Guild Financial's mission to serve military service members and their families by providing tailored financial education and investment services [3][4]. - The initiative is led by Kaj Larsen, co-founder of Guild Financial, who brings expertise from both military and financial sectors [2][4]. Group 2: Strategic Goals - Siebert.Valor aims to enhance financial literacy and opportunity for underserved communities, aligning with the legacy of Muriel Siebert, the first woman to own a seat on the NYSE [3][5]. - The platform will integrate Siebert's financial expertise with Guild's innovative and community-focused approach to investing and education [4][5]. Group 3: Community Engagement - Siebert.Valor pre-launched by sponsoring events during Fleet Week in Miami, including financial literacy talks and community activities [5]. - The initiative embodies values of service, integrity, and commitment, focusing on empowering those who have served the country [6]. Group 4: Company Background - Guild Financial was founded on Veterans Day 2021, focusing on the financial needs of the military community [7]. - Siebert Financial Corp. has been a diversified financial services company since 1967, providing a full range of brokerage and financial advisory services [8][9].

Financial Performance - Total revenue for Q1 2024 was $20,456,000, an increase of 26.5% compared to $16,170,000 in Q1 2023[19] - Net income available to common stockholders for Q1 2024 was $3,688,000, up from $3,196,000 in Q1 2023, representing a 15.4% increase[19] - Commissions and fees increased to $2,300,000 in Q1 2024, a rise of 24.5% from $1,847,000 in Q1 2023[19] - Interest, marketing, and distribution fees rose to $8,763,000, up 25.6% from $6,973,000 in the same period last year[19] - Net income for the three months ended March 31, 2024, was $3,687,000, an increase of 14.7% compared to $3,215,000 for the same period in 2023[22] - The company reported a basic and diluted net income per share of $0.09 for Q1 2024, compared to $0.10 in Q1 2023[19] - Retail customer net worth increased to $16.6 billion as of March 31, 2024, up from $15.9 billion at the end of 2023, representing a growth of approximately 4.4%[140] Assets and Liabilities - Total current assets decreased to $713,022,000 as of March 31, 2024, down from $773,850,000 at the end of 2023, a decline of 7.8%[18] - Total liabilities decreased to $667,472,000 as of March 31, 2024, compared to $731,091,000 at the end of 2023, a reduction of 8.7%[18] - Stockholders' equity increased to $73,843,000 as of March 31, 2024, up from $69,720,000 at the end of 2023, an increase of 5.1%[18] - Total assets as of March 31, 2024, were $742.303 million, a decrease of $59.497 million or 7.4% from December 31, 2023, primarily due to reduced cash and regulatory securities[159] - Liabilities decreased to $667.472 million as of March 31, 2024, down by $63.619 million or 8.7% from the end of 2023, mainly due to lower payables to customers[160] Cash Flow and Investments - Net cash used in operating activities was $62,041,000 for Q1 2024, compared to $39,014,000 in Q1 2023, indicating a significant increase in cash outflow[22] - Cash and cash equivalents at the end of the period were $2,856,000, down from $3,927,000 a year earlier, reflecting a decrease of 27.3%[22] - Total cash and cash equivalents, and cash and securities segregated for regulatory purposes decreased to $221,029,000 from $259,544,000, a decline of 14.8%[22] - The company reported a net cash used in investing activities of $1,761,000 for Q1 2024, compared to $1,017,000 in Q1 2023, showing an increase in investment expenditures[22] - Cash used in operating activities increased by $23.0 million for the three months ended March 31, 2024, primarily due to changes in receivables and securities transactions[174] - Cash used in investing activities rose by $0.7 million compared to the prior year, driven by the New York office build-out and Retail Platform development[175] Employee Compensation and Benefits - Employee compensation and benefits for Q1 2024 were $10,376,000, a significant increase of 48.5% compared to $6,967,000 in Q1 2023[19] - The Company recognized $394,000 in expenses for employee health claims for the three months ended March 31, 2024, compared to $180,000 for the same period in 2023[107] - The Company granted 50,000 restricted stock units at a price of $1.70, recognizing an equity stock compensation expense of $85,000 for the three months ended March 31, 2024[111] - The Company incurred $135,000 in expenses for 401(k) employee contribution matching for the three months ended March 31, 2024, compared to $0 for the same period in 2023[109] Regulatory and Compliance - The company expects considerable changes to its income tax footnote due to the new accounting standard ASU 2023-09, effective for annual periods beginning after December 15, 2024[42] - The company recorded an uncertain tax position of $1,405,000 related to various tax matters as of March 31, 2024[182] - The Company has suspended the use of its registration statement on Form S-3 due to late filing of its 2023 Form 10-K[126] - The Company is in the process of selecting a new independent registered public accounting firm following the resignation of Baker Tilly US, LLP[127] - Management is implementing measures to remediate material weaknesses in internal controls, expected to be completed by the end of 2024[191] Financing Activities - Draws on bank loans totaled $4,800,000 in Q1 2024, with repayments of long-term debt at $21,000, reflecting a net cash inflow from financing activities of $4,779,000[22] - The net capital infusion from Kakaopay was approximately $14.8 million after issuance costs, enhancing the company's regulatory capital[162] - The Company had an outstanding loan balance of $4.8 million as of March 31, 2024, under a line of credit with BMO Harris Bank[103] - Operating lease commitments total $3,187,000, with significant payments due in 2024 ($669,000) and 2025 ($861,000)[166] - Kakaopay fee obligations amount to $4,500,000, with a $5 million payment scheduled in ten quarterly installments starting March 29, 2024[166] Technology and Development - The Company incurred approximately $1.8 million out of a total budget of $3.3 million for technology vendor development projects related to its Retail Platform as of March 31, 2024[106] - The company has incurred approximately $664,000 of the estimated $800,000 build-out costs for the New York office as of March 31, 2024[168] - The company invested $58,000 in the Miami office building during the three months ended March 31, 2024, compared to $565,000 for the same period in 2023[66] - The company recorded a total rent and occupancy cost of $497,000 for the three months ended March 31, 2024, compared to $478,000 in 2023[73] Securities Transactions - Securities borrowed amounted to $383,670,000 as of March 31, 2024, while securities loaned were $389,474,000, indicating significant activity in securities transactions[40] - Total payables to broker-dealers and clearing organizations increased to $2,003,000 as of March 31, 2024, from $481,000 as of December 31, 2023[49] - Stock borrow/stock loan revenue for the three months ended March 31, 2024, was $4,098,000, compared to $3,442,000 in 2023[86] - Principal transactions and proprietary trading increased to $3.506 million in Q1 2024, a rise of $706,000 or 20.1% from Q1 2023, attributed to improved market conditions[143]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-5703 Siebert Financial Corp. (Exact name of registrant as specified in its charter) New York 11-1796714 (State or other jurisdiction of i ...