MDB Capital Holdings, LLC reported its financial results for the first quarter of 2025, revealing a net loss of $6.6 million, a decrease of 13.2% compared to a net loss of $7.6 million in the same period last year. The company generated total operating income of $828,098, a significant turnaround from an operating loss of $660,389 in Q1 2024. This improvement was primarily driven by increased fee income from its broker-dealer operations, which amounted to $2.14 million, compared to no fee income reported in the prior year.
The company's total assets decreased by 4.7% to $68.6 million as of March 31, 2025, down from $72.0 million at the end of 2024. This decline was attributed to a reduction in cash and cash equivalents, which fell to $19.6 million from $20.4 million, and a decrease in investment securities at fair value, which dropped to $5.4 million from $5.9 million. The equity method investment in eXoZymes also saw a decline, reflecting the company's share of losses from this entity, which was deconsolidated in November 2024.
Operationally, MDB Capital Holdings has made strategic adjustments, including the deconsolidation of eXoZymes, which has shifted its financial reporting. The company now holds a 47% stake in eXoZymes, accounting for it under the equity method. Additionally, MDB's employee headcount and related party expenses increased, reflecting the outsourcing of support services for its self-clearing operations. The company reported a 42.2% rise in related party operating expenses, totaling $455,358 for the quarter.
Looking ahead, MDB Capital Holdings aims to leverage its recent IPO and the operational efficiencies gained from its broker-dealer segment to enhance profitability. The company is focused on expanding its market presence and improving its financial performance, despite the challenges posed by market conditions and the ongoing need for capital to support its technology development initiatives. The management remains optimistic about future growth opportunities, particularly in the areas of investment banking and intellectual property services.
About MDB Capital Holdings, LLC
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