MORGAN GROUP HOLDING CO. Unless indicated otherwise, or the context otherwise requires, references in
this report to the "Company," "
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Our disclosure and analysis in this Form 10-Q contains some forward-looking statements. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements because they do not relate strictly to historical or current facts. They use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "will," "should," "may," and other words and terms of similar meaning. They also appear in any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance of our products, expenses, the outcome of any legal proceedings, and financial results. Although we believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know about our business and operations, there can be no assurance that our actual results will not differ materially from what we expect or believe. We are providing these statements as permitted by the Private Litigation Reform Act of 1995. We do not undertake to update publicly any forward-looking statements if we subsequently learn that we are unlikely to achieve our expectations or if we receive any additional information relating to the subject matters of our forward-looking statements.
OVERVIEW
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included in Part I, Item 1 of this Form 10-Q. This discussion contains forward-looking statements and involves numerous risks and uncertainties. Our actual results could differ materially from those anticipated by such forward-looking statements as discussed under "Cautionary Statement Regarding Forward-Looking Statements" appearing elsewhere in this Form 10-Q.
In light of the dynamics created by COVID-19, its impact on the global supply
chain and economy, including government imposed restrictions on travel and the
temporary closure of businesses deemed non-essential across
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RESULTS OF OPERATIONS
The following table (in thousands, except per share data) and discussion of our results of operations are based upon data derived from the Condensed Consolidated Statements of Income contained in our condensed consolidated financial statements and should be read in conjunction with those statements included in Part I, Item 1 of this Form 10-Q:
Three Months Ended March 31,
2020 2019
Revenues
Commissions$ 1,039 $ 1,535 Fees earned from affiliated entities pursuant to research services agreements - 378 Principal transactions (1 ) (0 ) Dividends and interest 36 64 Underwriting fees 30 - Sales manager fees 335 - Other revenues 3 6 Total revenues 1,443 1,982 Expenses Compensation and related costs 1,143 2,479 Clearing charges 303 290 General and administrative 311 325 Occupancy and equipment 104 196 Total expenses 1,862 3,290 Loss before income tax benefit (419 ) (1,308 ) Income tax benefit (137 ) (267 ) Net loss$ (282 ) $ (1,041 ) Net loss per share Basic and diluted$ (0.00 ) $ (0.02 )
Three Months Ended
Revenues
Institutional research service revenues were
Three Months Ended March 31, Increase (Decrease)
2020 2019 $ %
Commissions $ 937 $ 1,426 $ (489 ) -34.3 %
Hard dollar payments 102 109 (7 ) -6.4 %
1,039 1,535 $ (496 ) -32.3 %
Research services - 378 (378 ) -100.0 %
Underwriting fees 30 - 30 n/a
Sales manager fees 335 - 335 n/a
Total $ 1,404 $ 1,913 $ (509 ) -26.6 %
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Commissions and hard dollar payments in the 2020 period were
The agreements between G.research and
The Company participated as agent in the secondary offerings of the GAMCO Global
Gold, Natural Resources & Income Trust ("GGN"). Pursuant to sales agreements
between the parties, the Company earned sales manager fees related to this
offering of
Principal Transactions
During the three months ended
Interest and dividend income declined
Expenses
Total expenses were
Compensation costs, which includes salaries, bonuses, and benefits, were
Income Tax Benefit
We recorded income tax benefits of
Net Loss
Net loss for the three months ended
LIQUIDITY AND CAPITAL RESOURCES
Our principal assets are highly liquid in nature and consist of cash and cash
equivalents, comprised primarily of a 100%
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