Employee Benefit Plans

3 Months Ended

Mar. 31, 2025

18. Employee Benefit Plans

The Company sponsors a defined-contribution retirement plan under Section 401(k) of the Internal Revenue Code that covers substantially all employees (“401(k) plan”). Participant contributions to the 401(k) plan are voluntary and are subject to certain limitations. The Company may also make discretionary contributions to the plan. For 401(k) employee contribution matching, the Company incurred expense of $152,000 and $135,000 for the three months ended March 31, 2025 and 2024, respectively.

On September 17, 2021, the Company’s shareholders approved the Siebert Financial Corp. 2021 Equity Incentive Plan (the “Plan”). The Plan provides for the grant of stock options, restricted stock, and other equity awards of the Company’s common stock to employees, officers, consultants, directors, affiliates and other service providers of the Company. There were 3 million shares reserved under the Plan and 1,152,000 and 2,214,000 and shares remained as of March 31, 2025 and December 31, 2024, respectively.

The table below presents the Plan awards granted and the related fair values for the three months ended March 31, 2025.

	Shares			Weighted- Average Grant Date Fair Value
Nonvested as of December 31, 2024		150,000		$	1.65
Forfeited		(50,000	)		1.65
Granted		1,112,000			2.69
Vested		(237,000	)		2.27
Nonvested as of March, 2025		975,000		$	2.69

As of March 31, 2025, there was $2,483,000 of total unrecognized compensation cost related to nonvested shares granted. The cost is expected to be recognized over a weighted average period of 2.1 years.

The Company recognized stock-based compensation expense of $554,000 and $85,000 for the three months ended March 31, 2025 and 2024, respectively. $554,000 and $62,000 of this expense is included in the line item “Employee compensation and benefits” for the three months ended March 31, 2025 and 2024, respectively. $0 and $23,000 of this expense is fully capitalized within the line item “Software, net” in the consolidated statements of financial condition.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

SIEBERT FINANCIAL CORP 10-Q