Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - SIEBERT FINANCIAL CORP | ex99_2.htm |
| EX-99.1 - EXHIBIT 99.1 - SIEBERT FINANCIAL CORP | ex99_1.htm |
| 8-K/A - FORM 8-K/A - SIEBERT FINANCIAL CORP | siebert_8ka.htm |
Exhibit 99.3
SIEBERT FINANCIAL CORP. & SUBSIDIARIES
PRO-FORMA CONSOLIDATING BALANCE SHEETS
SEPTEMBER 30, 2017
| Siebert Financial | Target | Pro-Forma | Pro-Forma | |||||||||||||
| Corp. | Business | Adjustments | Balance | |||||||||||||
| Cash and cash equivalents | $ | 3,215,000 | 3,215,000 | |||||||||||||
| Receivable from brokers | 1,100,000 | 1,100,000 | ||||||||||||||
| Furniture, equipment & leasehold Improvements, net | 306,000 | 306,000 | ||||||||||||||
| Prepaid Expenses & Other Assets | 354,000 | 157,000 | 511,000 | |||||||||||||
| $ | 4,975,000 | 157,000 | 5,132,000 | |||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
| Liabilities: | ||||||||||||||||
| Accounts payable and accrued liabilities | $ | 494,000 | 874,000 | 1,368,000 | ||||||||||||
| 494,000 | 874,000 | 1,368,000 | ||||||||||||||
| Commitments and contingent liabilities | ||||||||||||||||
| Stockholders’ equity | ||||||||||||||||
|
Common stock $.01 par value; 49,000,000 shares authorized and 22,085,126 issued and 22,085,126 shares outstanding at September 30, 2017 |
||||||||||||||||
| 221,000 | 51,000 | 272,000 | ||||||||||||||
| Additional paid-in capital | 7,692,000 | 19,933,000 | 27,625,000 | |||||||||||||
| Distribution | (20,701,000 | ) | (20,701,000 | ) | ||||||||||||
| Deficit | (3,432,000 | ) | (717,000 | ) | 717,000 | (3,432,000 | ) | |||||||||
| 4,481,000 | (717,000 | ) | 3,764,000 | |||||||||||||
| $ | 4,975,000 | $ | 157,000 | 5,132,000 | ||||||||||||
| D-1 |
SIEBERT FINANCIAL CORP. & SUBSIDIARIES
PRO-FORMA CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2016
| Siebert Financial | Target | Pro-Forma | Pro-Forma | |||||||||||||
| Corp. | Business | Adjustments | Balance | |||||||||||||
| Cash and cash equivalents | $ | 2,730,000 | 2,730,000 | |||||||||||||
| Receivable from brokers | 606,000 | 606,000 | ||||||||||||||
| Securities owned, at fair value | 92,000 | 92,000 | ||||||||||||||
| Furniture, equipment & leasehold Improvements, net | 46,000 | 46,000 | ||||||||||||||
| Prepaid Expenses & Other Assets | 342,000 | 130,000 | 472,000 | |||||||||||||
| $ | 3,816,000 | 130,000 | $ | 3,946,000 | ||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
| Liabilities: | ||||||||||||||||
| Accounts payable and accrued liabilities | $ | 738,000 | 810,000 | 1,548,000 | ||||||||||||
| Accrued settlement liabilities | 825,000 | 0 | 825,000 | |||||||||||||
| 1,563,000 | 810,000 | 2,373,000 | ||||||||||||||
| Commitments and contingent liabilities | ||||||||||||||||
| Stockholders’ equity | ||||||||||||||||
| Common stock $.01 par value; 49,000,000 shares authorized and 22,085,126 issued and 22,085,126 shares outstanding at September 30, 2017 | ||||||||||||||||
| 221,000 | 51,000 | 272,000 | ||||||||||||||
| Additional paid-in capital | 6,889,000 | 19,933,000 | 26,822,000 | |||||||||||||
| Distribution | (20,664,000 | ) | (20,664,000 | ) | ||||||||||||
| Deficit | (4,857,000 | ) | (680,000 | ) | 680,000 | (4,857,000 | ) | |||||||||
| 2,253,000 | (680,000 | ) | 1,573,000 | |||||||||||||
| $ | 3,816,000 | $ | 130,000 | 3,496,000 | ||||||||||||
| D-2 |
SIEBERT FINANCIAL CORP. & SUBSIDIARIES
PRO-FORMA CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDING SEPTEMBER 30, 2017
| Siebert Financial | Target | Pro-Forma | Pro-Forma | |||||||||||||
| Corp. | Business | Adjustments | Balance | |||||||||||||
| Revenues: | ||||||||||||||||
| Commissions and fees | $ | 7,772,000 | 2,814,000 | 10,586,000 | ||||||||||||
| Investment banking | 16,000 | 0 | 16,000 | |||||||||||||
| Trading profits | 360,000 | 7,441,000 | 7,801,000 | |||||||||||||
| Interest and dividends | 9,000 | 1,302,000 | 1,311,000 | |||||||||||||
| Other income | 0 | 456,000 | 456,000 | |||||||||||||
| 8,157,000 | 12,013,000 | 20,170,000 | ||||||||||||||
| Expenses: | ||||||||||||||||
| Employee compensation and benefits | 3,069,000 | 6,317,000 | 9,386,000 | |||||||||||||
| Clearing fees, including floor brokerage | 819,000 | 511,000 | 1,330,000 | |||||||||||||
| Professional fees | 1,265,000 | 0 | 1,265,000 | |||||||||||||
| Advertising and promotion | 61,000 | 0 | 61,000 | |||||||||||||
| Interest expense | 0 | 129,000 | 129,000 | |||||||||||||
| Communications | 192,000 | 1,127,000 | 1,319,000 | |||||||||||||
| Occupancy | 306,000 | 845,000 | 1,151,000 | |||||||||||||
| Other general and administrative | 1,020,000 | 2,221,000 | 3,241,000 | |||||||||||||
| 6,732,000 | 11,150,000 | 17,882,000 | ||||||||||||||
| Net Income | 1,425,000 | 863,000 | 2,288,000 | |||||||||||||
| Basic and diluted | $ | .06 | $ | .09 | ||||||||||||
| Basic and diluted | 22,085,126 | 27,157,188 | ||||||||||||||
| D-3 |
SIEBERT FINANCIAL CORP. & SUBSIDIARIES
PRO-FORMA CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDING DECEMBER 31, 2016
| Siebert Financial | Target | Pro-Forma | Pro-Forma | |||||||||||||
| Corp. | Business | Adjustments | Balance | |||||||||||||
| Revenues: | ||||||||||||||||
| Commissions and fees | $ | 8,294,000 | 3,886,000 | 12,180,000 | ||||||||||||
| Investment banking | 46,000 | 0 | 46,000 | |||||||||||||
| Trading profits | 921,000 | 9,241,000 | 10,162,000 | |||||||||||||
| Interest and dividends | 551,000 | 1,444,000 | 1,995,000 | |||||||||||||
| Other income | 0 | 620,000 | 620,000 | |||||||||||||
| 9,812,000 | 15,191,000 | 25,003,000 | ||||||||||||||
| Expenses: | ||||||||||||||||
| Employee compensation and benefits | 4,883,000 | 8,859,000 | 13,742,000 | |||||||||||||
| Clearing fees, including floor brokerage | 866,000 | 632,000 | 1,498,000 | |||||||||||||
| Professional fees | 3,458,000 | 0 | 3,458,000 | |||||||||||||
| Professional fees and other expenses | ||||||||||||||||
| Related to change in control | 2,206,000 | 0 | 2,206,000 | |||||||||||||
| Loss related to arbitration settlement | 825,000 | 0 | 825,000 | |||||||||||||
| Advertising and promotion | 258,000 | 0 | 258,000 | |||||||||||||
| Interest | 0 | 145,000 | 145,000 | |||||||||||||
| Communications | 462,000 | 1,238,000 | 1,700,000 | |||||||||||||
| Occupancy | 746,000 | 1,005,000 | 1,751,000 | |||||||||||||
| Other general and administrative | 1,686,000 | 2,696,000 | 4,382,000 | |||||||||||||
| 15,390,000 | 14,575,000 | 29,965,000 | ||||||||||||||
| Net Income (loss) | (5,578,000 | ) | 616,000 | (4,962,000 | ) | |||||||||||
| Basic and diluted | $ | (.25 | ) | $ | (.18 | ) | ||||||||||
| Basic and diluted | 22,085,126 | 27,157,188 | ||||||||||||||
| D-4 |
FOOTNOTES TO PROFORMA FINANCIAL STATEMENTS
| 1. | Basis of Presentation |
The pro forma consolidated balance sheet as of September 30, 2017 and December 31, 2016 and the consolidated statement of operations for the nine month ended September 30, 2017 and year ended December 31, 2016 were derived from and should be read in conjunction with the Annual Report on Form 10-K of Siebert Financial Corp. (“Siebert”) for the year ended December 31, 2016 and the Quarterly Report on Form 10-Q of Siebert for the nine months ended September 30, 2017. The audited financial statements for the assets (the “Assets”) acquired from StockCross Financial Services Inc. (“StockCross”) for the year end December 31, 2017 and the Balance Sheet as of December 31, 2016. The interim financial statements for the Assets acquired from StockCross for the nine months ended September 30, 2017 and the Balance Sheet as of September 30, 2017 are unaudited.
The unaudited pro forma financial information included herein is for informational purposes only and does not purport to present what our results would have been had these transaction actually occurred on the dates presented or to project our results of operation or financial position for any future period.
Pursuant to the Asset Purchase Agreement dated June 26, 2017 by and among Siebert, Muriel Siebert & Co., Inc., Siebert’s ’s wholly-owned subsidiary (“MSCO”) and StockCross, the purchase price for the Assets acquired (the “Acquisition”) was $19,983,924 paid by Siebert issuing and delivering to StockCross 5,072,062 shares of its restricted common stock with such shares valued at $3.94 per share (the weighted average closing price of Siebert’s shares as reported on the NASDAQ market for the fifteen day period prior to the Letter of Intent between the parties dated May 3, 2017). The 5,072,062 shares bear a two year restrictive legend. The acquisition of the Assets closed in the fourth quarter of 2017.
| D-5 |