v3.26.1
Segment Reporting
 12 Months Ended
Dec. 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.

 

The technology development segment currently has two subsidiaries, eXoZymes, and M1. eXoZymes is a research and development stage company synthetic biology company, that is consolidated in the Statement of Operations up to November 14, 2024. M1 research and development stage company that is developing a small molecule senescence platform.

 

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

 

 

The segments are based on the discrete financial information reviewed by the Chief Executive Officer to make resource allocation decisions and to evaluate performance. The reportable segments are each managed separately because they will provide a distinct product or provide services with different processes. All reported segment revenues are derived from external customers.

 

The accounting policies of the Company’s reportable segments are in consideration of ASC 280 and the same as those described in the summary of significant accounting policies (see Note 2).

 

The following sets forth the long-lived assets and total assets by segment at December 31, 2025 (in thousands):

 

ASSETS  Broker
Dealer and
Intellectual
Property
Service		   Technology
Development		   Other   Eliminations   Consolidated 
Long-lived assets  $117   $      -   $547   $     -   $664 
Total assets  $25,128   $3   $38,609   $-   $63,740 

 

 

   Broker
Dealer &
Intellectual
Property
Service		   Technology Development   Other   Eliminations   Consolidated 
Operating income:                         
Unrealized (loss) on investment securities, net from the licensed broker dealer (1)  $(331)  $-   $-   $-   $(331)
Investment securities, at fair value, held by the non-licensed broker dealer (1)   85    -    -    -    85 
Realized gain on investment securities, net from the licensed broker dealer (2)   14    -    -    -    14 
Fee income from the licensed broker dealer (3)   4,282    -    -    -    4,282 
Other operating income (4)   861    -    -    -    861 
Total operating income, net   4,911    -    -    -    4,911 
                          
Operating costs:                         
General and administrative costs:                         
Compensation   2,875    -    12,094    -    14,969 
Operating expense, related party   1,471    -    362    -    1,833 
Professional fees   1,005    64    868    -    1,937 
Information technology   968    -    135    -    1,103 
Clearing and other charges   556    -    -    -    556 
General and administrative-other   742    -    1,497    -    2,239 
General and administrative costs   7,617    64    14,956    -    22,637 
Research and development costs   -    -    -    -    - 
Total operating costs   7,617    64    14,956    -    22,637 
Net operating (loss)   (2,706)   (64)   (14,956)   -    (17,726)
Other income and expense:                         
Miscellaneous income   75    -    -    -    75 
Interest expense   (990)   -    -    990    - 
Interest income   471    -    1,136    (990)   617 
Gain related to dilution events   -    -    61    -    61 
(Loss) before income taxes   (3,150)   (64)   (13,759)   -    (16,973)
Income tax expense   11    -    -    -    11 
Income (loss) before equity method investee   (3,161)   (64)   (13,759)   -    (16,984)
Equity in loss of equity method investee   -    -    (4,282)   -    (4,282)
Net (loss)   (3,161)   (64)   (18,041)   -    (21,266)
Less net loss attributable to non-controlling interests   -    (21)   -    -    (21)
Net loss attributable to MDB Capital Holdings, LLC  $(3,161)  $(43)  $(18,041)  $-   $(21,245)

 

  (1) Includes unrealized losses on securities held by the broker-dealer and non-broker dealer.
     
  (2) Includes realized gains on securities held by the broker-dealer.
     
  (3) Includes fee income generated for the broker-dealer from investment banking activities, including advisory services, capital raising, and other related financial transactions.
     
  (4) 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 (in thousands):

 

 

ASSETS  Broker
Dealer &
Intellectual
Property
Service		   Technology
Development		   Other   Eliminations   Consolidated 
Long-lived assets  $91   $    -   $641   $    -   $732 
Total assets  $21,754   $1   $50,221   $-   $71,976 

 

 

   Broker
Dealer &
Intellectual
Property
Service		   Technology Development   Other   Eliminations   Consolidated 
Operating income:                         
Unrealized (loss) on investment securities, net from the licensed broker dealer (1)  $(275)  $-   $-   $-   $(275)
Fee income from the licensed broker dealer (2)   2,221    -    -    -    2,221 
Impairment loss (3)   (200)                  (200)
Other operating income (4)   411    -    -    -    411 
Total operating income, net   2,157    -    -    -    2,157 
                          
Operating costs:                         
General and administrative costs:                         
Compensation   3,226    2,062    14,769    -    20,057 
Operating expense, related party   1,301    -    185    -    1,486 
Professional fees   820    1,206    1,086    -    3,112 
Information technology   805    34    83    -    922 
Clearing and other charges   1,137    -    -    -    1,137 
General and administrative-other   806    133    1,669    -    2,608 
General and administrative costs   8,095    3,435    17,792    -    29,322 
Research and development costs   -    1,468    -    -    1,468 
Total operating costs   8,095    4,903    17,792    -    30,790 
Net operating (loss)   (5,938)   (4,903)   (17,792)   -    (28,633)
Other income and expense:                         
Miscellaneous income   112    -    -    -    112 
Interest expense   (779)   (92)   -    799    (72)
Interest income   465    3    1,510    (799)   1,179 
Gain related to dilution events   -    -    130    -    130 
Gain on deconsolidation of subsidiary   -    -    39,307    -    39,307 
Income (loss) before income taxes   (6,140)   (4,992)   23,155    -    12,023 
Income tax expense   -    2    -    -    2 
Income (loss) before equity method investee   (6,140)   (4,994)   23,155    -    12,021 
Equity in loss of equity method investee   -    -    (420)   -    (420)
Net income (loss)   (6,140)   (4,994)   22,735    -    11,601 
Less net loss attributable to non-controlling interests   -    (90)   -    -    (90)
Net income and (loss) attributable to MDB Capital Holdings, LLC  $(6,140)  $(4,904)  $22,735   $-   $11,691 

 

(1)Includes unrealized gains and losses on securities held by the broker-dealer.

 

(2)Includes fee income generated for the broker from investment banking activities, including advisory services, capital raising, and other related financial transactions.

 

(3)Includes impairment loss of assets from the reduced fair value of the asset.

 

(4)Includes fees earned from self-clearing activities and professional fees generated by PatentVest services.