Dominari Holdings Inc
For the period ended Sep 30, 2024. Filed Nov 8, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 8, 2024
DOMH$1.40-3.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-08.
0001213900-24-066676
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-08.
0001213900-24-095881
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 33 previous paragraphs and 33 current paragraphs.
21 unchanged; 11 reworded; 1 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Removed paragraphs (1)
Previous report
The Company is in the process of winding down its historical pipeline of biotechnology assets held by Aikido Labs, LLC. These biotechnology assets consist of patented technology from leading universities and researchers, including prospective treatments for pancreatic cancer, acute myeloid leukemia, SARS-CoV-2 and acute lymphoblastic leukemia.
Reworded paragraphs (11)
Previous wording
During the three months ended June 30, 2024 and 2023, we recognized approximately $6.2 million and $71,000 in revenue from operations, respectively, primarily driven by the commissions and underwriting revenue earned by Dominari Securities and Dominari Manager LLC (“Manager”). During the three months ended June 30, 2024 and 2023, we incurred a loss from operations of approximately $2.7 million and $9.0 million, respectively.
Current wording
During the three months ended September 30, 2024 and 2023, we recognized approximately $4.0 million and $1.0 million in revenue from operations, respectively, primarily driven by the commissions and underwriting revenue earned by Dominari Securities and Dominari Manager LLC (“Manager”). During the three months ended September 30, 2024 and 2023, we incurred a loss from operations of approximately $3.2 million and $3.1 million, respectively.
Previous wording
During the three months ended June 30, 2024 and 2023, other (expenses) income was approximately $(3.4) million and $0.3 million, respectively.
Current wording
During the three months ended September 30, 2024 and 2023, other expenses was approximately $1.0 million and $0.4 million, respectively.
Previous wording
The activity described above for the three months ended June 30, 2024 and 2023, is primarily a result of the Company’s entrance into the financial services industry, overall volatility in investment valuations due to macroeconomic uncertainty impacting marketable securities and the change in fair value of long-term equity investments. Specifically:
Current wording
The activity described above for the three months ended September 30, 2024 and 2023, is primarily a result of the Company’s entrance into the financial services industry, overall volatility in investment valuations due to macroeconomic uncertainty impacting marketable securities and the change in carrying value of long-term equity investments. Specifically:
Previous wording
Six Months Ended June 30, 2024, compared to the Six Months Ended June 30, 2023
Current wording
Nine months ended September 30, 2024, compared to the nine months ended September 30, 2023
Previous wording
During the six months ended June 30, 2024, we recognized approximately $7.5 million and $71,000 in revenue from operations, respectively, primarily driven by the commissions and underwriting revenue earned by Dominari Securities and Dominari Manager. During the six months ended June 30, 2024 and 2023, we incurred a loss from operations of approximately $5.5 million and $12.8 million, respectively.
Current wording
During the nine months ended September 30, 2024, we recognized approximately $11.6 million and $1.0 million in revenue from operations, respectively, primarily driven by the commissions and underwriting revenue earned by Dominari Securities and Manager. During the nine months ended September 30, 2024 and 2023, we incurred a loss from operations of approximately $8.7 million and $16.0 million, respectively.
Previous wording
During the six months ended June 30, 2024 and 2023, other (expenses) income was approximately $(6.0) million and $0.4 million, respectively.
Current wording
During the nine months ended September 30, 2024 and 2023, other expenses was approximately $7.0 million and $17,000, respectively.
Previous wording
The activity described above for the six months ended June 30, 2024 and 2023, is primarily a result of the Company’s entrance into the financial services industry, overall volatility in investment valuations due to macroeconomic uncertainty impacting marketable securities and the change in fair value of long-term equity investments. Specifically:
Current wording
The activity described above for the nine months ended September 30, 2024 and 2023, is primarily a result of the Company’s entrance into the financial services industry, overall volatility in investment valuations due to macroeconomic uncertainty impacting marketable securities and the change in carrying value of long-term equity investments. Specifically:
Previous wording
Our ultimate success is dependent on our ability to generate sufficient cash flow to meet our obligations on a timely basis. Our business may require significant amounts of capital to sustain operations that we need to execute our longer-term business plan to support our transition into the financial services industry. Our working capital amounted to approximately $24.9 million as of June 30, 2024. We believe our cash and cash equivalents and marketable securities, together with the anticipated cash flow from operations will be sufficient to meet our working capital and capital expenditure requirements for at least the next 12 months. In the event that cash flow from operations is not sufficient to fund our operations, as expected, or if our plans or assumptions change, including if inflation begins to have a greater impact on our business or if we decide to move forward with any activities that require more outlays of cash than originally planned, we may need to raise additional capital sooner than expected. We may raise this additional capital by obtaining additional debt or equity financing, especially if we experience downturns in our business that are more severe or longer than anticipated, or if we experience significant increases in expense levels resulting from being a publicly traded company or from continuing operations.
Current wording
Our ultimate success is dependent on our ability to generate sufficient cash flow to meet our obligations on a timely basis. Our business may require significant amounts of capital to sustain operations that we need to execute our longer-term business plan to support our transition into the financial services industry. Our working capital amounted to approximately $22.3 million as of September 30, 2024. We believe our cash and cash equivalents and marketable securities, together with the anticipated cash flow from operations will be sufficient to meet our working capital and capital expenditure requirements for at least the next 12 months. In the event that cash flow from operations is not sufficient to fund our operations, as expected, or if our plans or assumptions change, including if inflation begins to have a greater impact on our business or if we decide to move forward with any activities that require more outlays of cash than originally planned, we may need to raise additional capital sooner than expected. We may raise this additional capital by obtaining additional debt or equity financing, especially if we experience downturns in our business that are more severe or longer than anticipated, or if we experience significant increases in expense levels resulting from being a publicly traded company or from continuing operations.
Previous wording
For the six months ended June 30, 2024 and 2023, net cash used in operations was approximately $7.2 million and $13.9 million, respectively. The cash used in operating activities for the six months ended June 30, 2024, is primarily attributable to a net loss of approximately $11.6 million, $3.3 million realized gain on marketable securities and changes in operating assets and liabilities of $3.5 million, partially offset by approximately $5.5 million of change in fair value of long-term equity investment, $2.9 million unrealized loss on marketable securities and $1.7 million unrealized and realized loss on note receivable. The cash used in operating activities for the six months ended June 30, 2023, is primarily attributable to a net loss of approximately $12.4 million, approximately $0.5 million of realized gain on marketable securities and changes in operating assets and liabilities of $4.6 million, partially offset by $2.7 million stock-based compensation expense and approximately $0.5 million in unrealized losses on marketable securities.
Current wording
For the nine months ended September 30, 2024 and 2023, net cash used in operations was approximately $11.9 million and $17.5 million, respectively. The cash used in operating activities for the nine months ended September 30, 2024, is primarily attributable to a net loss of approximately $15.8 million, $3.8 million realized gain on marketable securities and changes in operating assets and liabilities of $5.7 million, of which $6.5 million is clearing broker deposits, partially offset by approximately $6.4 million of change in carrying value of long-term equity investment, $3.4 million unrealized loss on marketable securities and $2 million unrealized and realized loss on note receivable. The cash used in operating activities for the nine months ended September 30, 2023, is primarily attributable to a net loss of approximately $16 million, approximately $1.2 million of realized loss on marketable securities and changes in operating assets and liabilities of $4.4 million, partially offset by $1.4 million stock-based compensation expense and approximately $0.9 million in unrealized gain on marketable securities.
Previous wording
For the six months ended June 30, 2024 and 2023, net cash provided by (used in) investing activities was approximately $10.2 million and $(14.7) million, respectively. The cash provided by investing activities for the six months ended June 30, 2024, primarily resulted from our sales of marketable securities of approximately $11.6 million and the sale of a long-term investment of $3.5 million, partially offset by purchase of marketable securities of $4.0 million and funds to employee forgivable loan of $1.3 million. The cash used in investing activities for the six months ended June 30, 2023, primarily resulted from our purchase of marketable securities of approximately $34.0 million and the acquisition of FPS of approximately $1.1 million, partially offset by our sale of marketable securities approximately of $20.5 million. The Company also collected approximately $0.5 million in principal related to its short-term notes.
Current wording
For the nine months ended September 30, 2024 and 2023, net cash provided by (used in) investing activities was approximately $12.5 million and $(10.4) million, respectively. The cash provided by investing activities for the nine months ended September 30, 2024, primarily resulted from our sales of marketable securities of approximately $14.8 million and the sale of a short-term investments of $3.5 million, partially offset by purchase of marketable securities of $4.0 million and funds to employee loans of $2.4 million. The cash used in investing activities for the nine months ended September 30, 2023, primarily resulted from our purchase of marketable securities of approximately $34.1 million and the acquisition of FPS of approximately $1.1 million, partially offset by our sale of marketable securities approximately of $24.6 million. The Company also collected approximately $0.8 million in principal related to its short-term notes.
Previous wording
For the six months ended June 30, 2024, there is no cash flows from financing activities. For the six months ended June 30, 2023, cash used in financing activities was approximately $0.9 million, which reflects the cost for purchase of treasury stock of approximately $0.9 million.
Current wording
For the nine months ended September 30, 2024, there are no cash flows from financing activities. For the nine months ended September 30, 2023, cash used in financing activities was approximately $0.9 million, which reflects the cost for purchase of treasury stock of approximately $0.9 million.