v3.25.1
Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting

3. Segment Reporting

 

In its operation of the business, management, including the Company’s chief operating decision maker, who is also the Company’s Chief Executive Officer, reviews certain financial information, including segmented profit and loss and balance sheet statements.

 

The Company currently operates in two reportable segments: a broker dealer & intellectual property service and technology development.

 

The broker dealer & intellectual property service segment currently has two subsidiaries, Public Ventures and PatentVest. Public Ventures is a full-service broker dealer firm focusing on conducting private and public securities offerings. PatentVest offers in-depth patent research used for investment banking due diligence.

 

For the three months ended March 31, 2025, the Company’s technology development segment consisted of a single subsidiary, M1, a research and development stage company focused on developing a small molecule senescence platform started in July 2024. For the three months ended March 31, 2024, the technology segment included one subsidiary, eXoZymes, a research and development stage synthetic biology company. eXoZymes was consolidated in the Company’s Statement of Operations through November 14, 2024, at which point it was deconsolidated and subsequently accounted for as an equity method investment.

 

Non-income generating subsidiaries for management of the business, including MDB CG Management Company, Inc. are reported in the Other column in the table below

 

The following sets forth the long-lived assets and total assets by segment at March 31, 2025:

  

ASSETS   Broker
Dealer &
Intellectual
Property
Service		     Technology
Development		     Other     Eliminations     Consolidated  
Long-lived assets   $ 132,146     $ -     $ 618,388     $  -     $ 750,534  
Total assets   $ 21,595,157     $ 3,311     $ 47,027,950     $ -     $ 68,626,418  

 

 

The following sets forth statements of operations by segment for the three-months March 31, 2025:

  

   Broker
Dealer &
Intellectual
Property
Service		   Technology Development   Other   Eliminations   Consolidated 
Operating income:                         
Unrealized loss on investment securities, net (from our licensed broker dealer) (Notes 1 and 2) (1)  $(1,462,842)  $-   $-   $-   $(1,462,842)
                          
Fee income (from our licensed broker dealer) (2)   2,140,238    -    -    -    2,140,238 
Other operating income (3)   150,702    -    -    -    150,702 
Total operating income, net   828,098    -    -    -    828,098 
                          
Operating costs:                         
General and administrative costs:                         
Compensation   778,067    -    3,557,949    -    4,336,016 
Operating expense, related party   360,546    -    94,812    -    455,358 
Professional fees   272,114    44,789    471,830    -    788,733 
Information technology   229,898    -    20,022    -    249,920 
Clearing and other charges   288,648    -    -    -    288,648 
General and administrative-other   206,188    -    413,139    -    619,327 
General and administrative costs   2,135,461    44,789    4,557,752    -    6,738,002 
Research and development costs   -    -    -    -    - 
Total operating costs   2,135,461    44,789    4,557,752    -    6,738,002 
Net loss   (1,307,363)   (44,789)   (4,557,752)   -    (5,909,904)
Other income and expense:                         
Miscellaneous income                  -      
Interest expense   (247,500)   -    -    247,500    - 
                          
Interest income   115,115    -    313,014    (247,500)   180,629 
Loss before income taxes   (1,439,748)   (44,789)   (4,244,738)   -    (5,729,275)
Income tax expense   -    -    -    -    - 
Loss before equity method investee   (1,439,748)   (44,789)   (4,244,738)   -    (5,729,275)
Equity in loss of equity method investee   -    -    (872,518)   -    (872,518)
Net loss   (1,439,748)   (44,789)   (5,117,256)   -    (6,601,793)
Net loss attributable to non-controlling interests   -    (14,431)   -    -    (14,431)
Net loss attributable to MDB Capital Holdings, LLC  $(1,439,748)  $(30,358)  $(5,117,256)  $-   $(6,587,362)

 

(1) Includes unrealized gains and losses on securities held by the broker-dealer.
   
(2) Includes fee income generated for the broker-dealer from investment banking activities, including advisory services, capital raising, and other related financial transactions.
   
(3) Includes fees earned from self-clearing activities by the broker-dealer and professional fees generated by PatentVest services.

 

 

The following sets forth the long-lived assets and total assets by segment at December 31, 2024:

 

ASSETS  Broker
Dealer &
Intellectual
Property
Service		   Technology
Development		   Other   Eliminations   Consolidated 
Long-lived assets  $90,491   $-   $641,354   $-   $731,845 
Total assets  $21,754,504   $849   $50,221,046   $-   $71,976,399 

 

 

The following sets forth statements of operations by segment for the three-months March 31, 2024:

 

    Broker
Dealer &
Intellectual
Property
Service		     Technology Development     Other     Eliminations     Consolidated  
Operating income:                                        
Unrealized loss on investment securities, net (from our licensed broker dealer) (1)   $ (747,268)     $ -     $ -     $  -     $ (747,268)  
Other operating income (2)     86,879       -       -       -       86,879  
Total operating loss, net     (660,389)       -       -       -       (660,389)  
                                         
Operating costs:                                        
General and administrative costs:                                        
Compensation     679,907       390,043       3,822,725       -       4,892,675  
Operating expense, related party     243,876       -       76,416       -       320,292  
Professional fees     145,907       256,563       516,619       -       919,089  
Information technology     180,914       3,891       21,186       -       205,991  
Clearing and other charges     2,036       -       -       -       2,036  
General and administrative-other     218,936       80,378       369,812       -       669,126  
General and administrative costs     1,471,576       730,875       4,806,758       -       7,009,209  
Research and development costs     -       277,582       -       -       277,582  
Total operating costs     1,471,576       1,008,457       4,806,758       -       7,286,791  
Net operating loss     (2,131,965 )     (1,008,457 )     (4,806,758 )     -       (7,947,180 )
Other income and expense:                                        
Interest expense     (110,625 )     -       -       110,625       -  
Interest income     52,459       -       285,393       -       337,852  
Loss before income taxes     (2,190,131 )     (1,008,457 )     (4,521,365 )     110,625       (7,609,328 )
Income tax expense     -       -       -       -       -  
Net Loss     (2,190,131 )     (1,008,457 )     (4,521,365 )     110,625       (7,609,328 )
Net loss attributable to non-controlling interests     -       (393,903 )     -       -       (393,903 )
Net loss attributable to MDB Capital Holdings, LLC   $ (2,190,131 )   $ (614,554 )   $ (4,521,365 )   $ 110,625     $ (7,215,425 )

 

(1) Includes unrealized gains and losses on securities held by the broker-dealer.
   
(2) Includes fees earned from self-clearing activities by the broker-dealer and professional fees generated by PatentVest services.