SIEB Siebert Financial Corporation

Recent Developments

• Implementing Strategic Priorities to Further Position for Growth
• Reducing Operational and Structural Costs
• Expanding the Customer Experience through the Introduction of New Products and Technologies

Second Quarter Financial Highlights

• Q2 Total Revenues $2.7 million, a 9.2% Increase from Q2 2016
• Q2 Total Expenses $2.3 million, a decrease of 27.1% from Q2 2016
• Q2 Net Income $365,000, as compared to a net loss of $728,000 for Q2 2016

First Half Financial Highlights

• Total Revenues for the six months ended June 30, 2017 were $5.1 million, an increase of 2.2% from the same period in 2016
• Total expenses for the six months ended June 30, 2017 were $4.6 million, a decrease of 24.9% from the same period in 2016
• Net income of $424,000 for the six months ended June 30, 2017 as compared to a net loss of $1,229,000 from the same period in 2016
• Stockholder’s Equity $3.8 million at June 30, 2017
• Total Retail Customer Net Worth $7.3 billion at June 30, 2017, an increase of 6.2% as compared to the same period in 2016

Siebert Financial Corp. (NASDAQ:SIEB) today reported financial results for the three and six months ended June 30, 2017.

Gloria E. Gebbia, majority shareholder and board member of Siebert Financial said, “I am very pleased with our financial results for the first half of 2017. We have made significant progress with our core strategy of driving long term shareholder value by improving our technology infrastructure, streamlining operations and introducing new products and services to enhance the customer experience.”

Following the change of ownership in December 2016, Siebert Financial Corp. has continued to serve clients throughout the United States and globally. The firm is dedicated to the core value of integrity and the safety of investments as first established in 1967 by founder Muriel Siebert.

“Our management team including Andrew Reich has worked to realize certain economies of scale and collective benefit with the purpose of increasing revenue and being profitable, and as a result, we have been able to reduce relative costs. We are strongly committed to building a world-class firm dedicated to serving client financial needs, and I am delighted with the activities underway which will position us strongly for the future,” she added.

For additional information, please refer to our Quarterly Report on Form 10-Q for the period ended June 30, 2017 filed with the SEC on August 14, 2017. You may also access the Form 10-Q through our website.

About Siebert Financial Corp.

Siebert Financial is a holding company that conducts its retail discount brokerage business through its wholly-owned subsidiary, Muriel Siebert & Co., Inc. The firm became a member of the NYSE in 1967, when Ms. Siebert became the first woman to own a seat on the Exchange. In addition, in 2014 the Company began business as a registered investment advisor through a wholly-owned subsidiary, Siebert Investment Advisors, Inc. Siebert Financial is based in New York City with additional retail branches in Boca Raton, FL and Jersey City, NJ. www.siebertnet.com

Cautionary note regarding forward-looking statements

Statements in this press release that are not statements of historical or current fact constitute “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements involve risks and uncertainties and known and unknown factors that could cause the actual results of the Siebert Financial Corp. (the “Company”) to be materially different from historical results or from any future results expressed or implied by such forward looking statements, including without limitation: changes in general economic and market conditions; changes and prospects for changes in interest rates; fluctuations in volume and prices of securities; changes in demand for brokerage services; competition within and without the brokerage business, including the offer of broader services; competition from electronic discount brokerage firms offering greater discounts on commissions than the Company; the prevalence of a flat fee environment; limited trading opportunities; the method of placing trades by the Company’s customers; computer and telephone system failures; the level of spending by the Company on advertising and promotion; trading errors and the possibility of losses from customer non-payment of amounts due; other increases in expenses and changes in net capital or other regulatory requirements. As a result of these and other factors, the Company may experience material fluctuations in its operating results on a quarterly or annual basis, which could materially and adversely affect its business, financial condition, operating results, and stock price, as well as other risks detailed in the Company’s filings with the Securities and Exchange Commission (“SEC”). Accordingly, investors are cautioned not to place undue reliance on any such “forward-looking statements. The Company undertakes no obligation to update the information contained herein or to publicly announce the result of any revisions to such “forward-looking statements” to reflect future events or developments. An investment in the Company involves various risks, including those mentioned above and those, which are detailed from time to time in the Company’s SEC filings, copies of which may be obtained from the Company or through the SEC’s website.

Notice to Investors

This communication is provided for informational purposes only and is neither an offer to sell nor a solicitation of an offer to buy any securities in the United States or elsewhere.

  Part I - FINANCIAL INFORMATION   Item 1. Financial Statements. Siebert Financial Corp. & Subsidiaries Condensed Consolidated Statements of Financial Condition        

June 30,2017(unaudited)

   

December 31,2016

ASSETS   Cash and cash equivalents $ 2,264,000 $ 2,730,000 Receivable from brokers 896,000 606,000 Securities owned, at fair value — 92,000 Furniture, equipment and leasehold improvements, net 243,000 46,000 Prepaid expenses 281,000 342,000 Other assets   125,000   —   $ 3,809,000 $ 3,816,000     LIABILITIES AND STOCKHOLDERS’ EQUITY   Liabilities:   Accounts payable and accrued liabilities $ 329,000 $ 738,000 Accrued settlement liability   —   825,000     329,000   1,563,000     Commitments and Contingencies   Stockholders’ equity: Common stock, $.01 par value; 49,000,000 shares authorized, 22,085,126 shares issued

and outstanding as of June 30, 2017 and 22,085,126 shares issued and outstanding

as of December 31, 2016

221,000 221,000 Additional paid-in capital 7,692,000 6,889,000 (Accumulated deficit)   (4,433,000 )   (4,857,000 )   3,480,000   2,253,000   $ 3,809,000 $ 3,816,000    

See notes to condensed consolidated financial statements.

    Siebert Financial Corp. & Subsidiaries Condensed Consolidated Statements of Operations (unaudited)        

Three Months EndedJune 30,

   

Six Months EndedJune 30,

    2017     2016     2017     2016         Revenues: Commissions and fees $ 1,037,000 $ 1,231,000 $ 2,219,000 $ 2,441,000 Margin interest, marketing and distribution fees 1,545,000 957,000 2,626,000 1,825,000 Investment banking 6,000 11,000 12,000 23,000 Trading profits 98,000 125,000 206,000 390,000 Interest and dividends   3,000       138,000         5,000       281,000     2,689,000       2,462,000         5,068,000       4,960,000     Expenses: Employee compensation and benefits 1,000,000 1,200,000 2,038,000 2,487,000 Clearing fees, including floor brokerage 304,000 236,000 568,000 474,000 Professional fees 468,000 915,000 893,000 1,585,000 Advertising and promotion 25,000 67,000 45,000 133,000 Communications 55,000 132,000 135,000 262,000 Occupancy 79,000 197,000 221,000 379,000 Other general and administrative   393,000       443,000         744,000       869,000   2,324,000 3,190,000 4,644,000 6,189,000                     Net income (loss) $ 365,000     $ (728,000 )     $ 424,000     $ (1,229,000 )   Net income (loss) per share of common stock –   Continuing operations $ .02 $ (.03 ) $ .02 $ (.06 ) Basic and diluted $ .02     $ (.03 )     $ .02     $ (.06 )   Weighted average shares outstanding - Basic 22,085,126 22,085,126 22,085,126 22,085,126 Diluted 22,085,126 22,085,126 22,085,126 22,085,126   See notes to condensed consolidated financial statements.     Siebert Financial Corp. & Subsidiaries Condensed Consolidated Statements of Cash Flows (unaudited)        

Six Months EndedJune 30,

2017     2016 Cash Flows From Operating Activities:       Net income (loss) $ 424,000 $ (1,229,000 ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 71,000 136,000   Interest accrued on note receivable from business sold to former affiliate — (274,000 ) Changes in: Securities Sold 92,000 — Securities Purchased — (67,000 ) Advance to former affiliate — (10,000 ) Receivable from brokers (290,000 ) 82,000   Prepaid expenses and other assets 61,000 114,000 Other assets   (125,000 )   —   Accounts payable and accrued liabilities   (431,000 )   (784,000 )   Net cash used in operating activities   (198,000 )   (2,032,000 )   Purchase of furniture, equipment and leasehold improvements   (268,000 )   (30,000 ) Collection of receivable from former affiliate   —     493,000   Net cash (used in) provided by investing activities (268,000 ) 463,000   Net decrease in cash and cash equivalents   (466,000 )   (1,569,000 ) Cash and cash equivalents - beginning of period   2,730,000     9,420,000     Cash and cash equivalents - end of period $ 2,264,000 $ 7,851,000   Supplemental Schedule Of Non-Cash Financing Activities:   Payment by parent of expenses $ 803,000     —     See notes to condensed consolidated financial statements.  

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Investors:Siebert Financial Corp.Yesenia Berdugo, 212-644-2435Office of the AdministratororMedia:LHK Communications LLCLaura Hynes-Keller, 212-758-8602laurahk@lhkcommunications.com