v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting

19. Segment Reporting

 

The Company operates two reportable segments, Financial Services, and Media, Sports and Entertainment. The Financial Services segment includes the Company’s broker-dealer and related financial services operations. The Media, Sports and Entertainment segment includes the Company’s entertainment and sports management and related marketing, advertising, and production activities.

 

The Chief Operating Decision Maker (“CODM”) is the Company’s Chief Executive Officer and evaluates segment performance and allocates resources using operating income, which represents the Company’s measure of segment profit or loss (the “Segment Measure”). The CODM also considers excess net capital as an operational metric in maintaining capital adequacy. Although asset information is provided to the CODM, segment performance is not evaluated based on asset measures; therefore, segment asset disclosures are not presented.

 

In accordance with ASC Topic 280, the Company discloses significant expense categories that are regularly reviewed by the CODM.

 

Three Months Ended June 30, 2026   Financial
Services		     Media, Sports
and Entertainment		     Total  
Stock borrow / stock loan   $10,791,000     $—     $10,791,000  
Interest, marketing and distribution fees     6,185,000       —       6,185,000  
Principal transactions and proprietary trading     6,092,000       —       6,092,000  
Commissions and fees     2,660,000       —       2,660,000  
Investment banking     2,435,000       —       2,435,000  
Other income     1,361,000       —       1,361,000  
Advisory fees     1,035,000       —       1,035,000  
Market making     334,000       —       334,000  
Music and artist services revenue     —       169,000       169,000  
NIL revenue     —       112,000       112,000  
Total Revenue     30,893,000       281,000       31,174,000  
                         
Significant segment expenses:                        
Employee compensation and benefits     18,559,000       676,000       19,235,000  
Clearing fees, including execution costs     860,000       —       860,000  
Technology and communications     1,933,000       1,000       1,934,000  
Other general and administrative     1,762,000       115,000       1,877,000  
Data processing     1,754,000       —       1,754,000  
Rent and occupancy     473,000       56,000       529,000  
Professional fees     1,928,000       132,000       2,060,000  
Depreciation and amortization     658,000       13,000       671,000  
Interest expense     228,000       —       228,000  
Advertising and promotion     594,000       242,000       836,000  
Settlement expense     1,475,000       —       1,475,000  
Music production, manufacturing and distribution     —       187,000       187,000  
Total Expenses     30,224,000       1,422,000       31,646,000  
                         
Operating income (loss)   $ 669,000     $ (1,141,000 )   $ (472,000 )

 

 

Six Months Ended June 30, 2026   Financial
Services		     Media, Sports
and Entertainment		     Total  
Stock borrow / stock loan     17,622,000       —       17,622,000  
Interest, marketing and distribution fees     12,059,000       —       12,059,000  
Principal transactions and proprietary trading     10,020,000       —       10,020,000  
Commissions and fees   $ 4,985,000     $ —     $ 4,985,000  
Investment banking     4,008,000       —       4,008,000  
Other income     2,402,000       —       2,402,000  
Advisory fees     2,045,000       —       2,045,000  
Market making     879,000       —       879,000  
Music and artist services revenue     —       417,000       417,000  
NIL revenue     —       207,000       207,000  
Total Revenue     54,020,000       624,000       54,644,000  
                         
Significant segment expenses:                        
Employee compensation and benefits     34,202,000       1,205,000       35,407,000  
Clearing fees, including execution costs     1,457,000       —       1,457,000  
Technology and communications     3,732,000       7,000       3,739,000  
Other general and administrative     3,157,000       275,000       3,432,000  
Data processing     3,040,000       —       3,040,000  
Rent and occupancy     890,000       93,000       983,000  
Professional fees     3,545,000       213,000       3,758,000  
Depreciation and amortization     1,335,000       26,000       1,361,000  
Interest expense     446,000       —       446,000  
Advertising and promotion     1,174,000       562,000       1,736,000  
Intangible asset impairment     —       454,000       454,000  
Goodwill impairment     —       330,000       330,000  
Settlement expense     1,475,000       —       1,475,000  
Music production, manufacturing and distribution     —       365,000       365,000  
Total Expenses     54,453,000       3,530,000       57,983,000  
                         
Operating loss   $ (433,000 )   $ (2,906,000 )   $ (3,339,000 )

 

Three Months Ended June 30, 2025   Financial Services     Media, Sports and Entertainment     Total  
Stock borrow / stock loan   $ 7,522,000     $ —     $ 7,522,000  
Interest, marketing and distribution fees     6,869,000       —       6,869,000  
Principal transactions and proprietary trading     (3,977,000 )     —       (3,977,000 )
Commissions and fees     2,014,000       —       2,014,000  
Investment banking     206,000       —       206,000  
Other income     839,000       —       839,000  
Advisory fees     791,000       —       791,000  
Market making     497,000       —       497,000  
Music and artist services revenue     —       113,000       113,000  
NIL revenue     —       —       —  
Total Revenue     14,761,000       113,000       14,874,000  
                         
Significant segment expenses:                        
Employee compensation and benefits     13,237,000       151,000       13,388,000  
Clearing fees, including execution costs     448,000       —       448,000  
Technology and communications     1,044,000       1,000       1,045,000  
Other general and administrative     1,546,000       294,000       1,840,000  
Data processing     1,147,000       —       1,147,000  
Rent and occupancy     425,000       17,000       442,000  
Professional fees     1,417,000       34,000       1,451,000  
Depreciation and amortization     629,000       —       629,000  
Interest expense     98,000       —       98,000  
Advertising and promotion     217,000       1,000       218,000  
Music production, manufacturing and distribution     —       —       —  
Total Expenses     20,208,000       498,000       20,706,000  
                         
Operating loss   $ (5,447,000 )   $ (385,000 )   $ (5,832,000 )

 

 

Six Months Ended June 30, 2025   Financial Services     Media, Sports and Entertainment     Total  
Stock borrow / stock loan     12,359,000       —       12,359,000  
Interest, marketing and distribution fees     13,814,000       —       13,814,000  
Principal transactions and proprietary trading     8,984,000       —       8,984,000  
Commissions and fees   $ 4,116,000     $ —     $ 4,116,000  
Investment banking     206,000       —       206,000  
Other income     1,613,000       —       1,613,000  
Advisory fees     1,539,000       —       1,539,000  
Market making     1,049,000       —       1,049,000  
Music and artist services revenue     —       113,000       113,000  
NIL revenue     —       —       —  
Total Revenue     43,680,000       113,000       43,793,000  
                         
Significant segment expenses:                        
Employee compensation and benefits     25,159,000       151,000       25,310,000  
Clearing fees, including execution costs     902,000       —       902,000  
Technology and communications     2,149,000       1,000       2,150,000  
Other general and administrative     3,045,000       304,000       3,349,000  
Data processing     2,096,000       —       2,096,000  
Rent and occupancy     876,000       33,000       909,000  
Professional fees     2,761,000       49,000       2,810,000  
Depreciation and amortization     1,044,000       —       1,044,000  
Interest expense     187,000       —       187,000  
Advertising and promotion     371,000       1,000       372,000  
Music production, manufacturing and distribution     —       —       —  
Total Expenses     38,590,000       539,000       39,129,000  
                         
Operating (loss)   $ 5,090,000     $ (426,000 )   $ 4,664,000