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MDB Capital Holdings LLC (MDBH-1.50%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing includes financial statements showing a net income of $11,602,222 for the year, a significant improvement from a net loss of $7,711,717 in the previous year. This change is primarily due to a gain of $39,307,217 from the deconsolidation of its subsidiary, eXoZymes Inc.
Operating income for the year was $2,157,273, a decrease from $5,995,027 in the prior year, attributed to reduced investment banking activity.
Total operating costs increased to $30,789,483 from $14,498,171, driven by higher compensation expenses, professional fees, and the implementation of self-clearing operations within the broker-dealer segment.
The company reported a significant increase in cash and cash equivalents to $20,437,492 from $6,109,806, primarily due to proceeds from the sale and maturity of U.S. Treasury Bills.
MDB Capital Holdings LLC operates two segments: a broker-dealer and intellectual property service segment, and a technology development segment. The broker-dealer segment reported a net loss of $6,139,990, while the technology segment reported a net loss of $4,903,081.
The company holds a significant equity investment in eXoZymes, representing a notable portion of its total assets. The investment is accounted for under the equity method following eXoZymes' IPO.
Public Ventures, the broker-dealer subsidiary, began self-clearing operations in January 2024, requiring compliance with additional regulatory capital requirements.
The company has identified a material weakness in its internal control over financial reporting related to the deconsolidation of eXoZymes, which it plans to remediate by the second quarter of 2025.
MDB Capital Holdings LLC's business model involves founding and nurturing early-stage companies, focusing on technology and life sciences sectors, with a strategy to eventually monetize these investments through public offerings or other transactions.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the MDB Capital Holdings LLC annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.