Dominari Holdings Inc. Files Q3 2024 10-Q

TL;DR

Dominari Holdings Inc. (formerly AIkido Pharma) filed its Q3 2024 10-Q. Check financials.

AI Summary

Dominari Holdings Inc. filed its 10-Q for the quarterly period ended September 30, 2024. The company, formerly known as AIkido Pharma Inc., is incorporated in Delaware and headquartered in New York. This filing provides an update on its financial performance and operations for the third quarter of 2024.

Why It Matters

This 10-Q filing provides investors with crucial financial and operational details for Dominari Holdings Inc. during the third quarter of 2024, enabling informed investment decisions.

Risk Assessment

Risk Level: low — This filing is a standard quarterly report and does not inherently indicate elevated risk.

Key Numbers

• 001-41845 — Commission File Number (Identifies the company's filing with the SEC)
• 52-0849320 — IRS Employer Identification No. (Company's tax identification number)

Key Players & Entities

• Dominari Holdings Inc. (company) — Registrant
• AIkido Pharma Inc. (company) — Former company name
• September 30, 2024 (date) — Quarterly period end date
• New York (location) — Company headquarters
• Delaware (location) — State of incorporation

FAQ

Key Financial Figures

• $0.0001 — ange on which registered Common Stock ($0.0001 par value per share) DOMH The Nasdaq Ca

Filing Documents

• ea0219844-10q_dominari.htm (10-Q) — 675KB
• ea021984401ex31-1_dominari.htm (EX-31.1) — 11KB
• ea021984401ex31-2_dominari.htm (EX-31.2) — 11KB
• ea021984401ex32-1_dominari.htm (EX-32.1) — 4KB
• ea021984401ex32-2_dominari.htm (EX-32.2) — 4KB
• 0001213900-24-095881.txt ( ) — 5038KB
• domh-20240930.xsd (EX-101.SCH) — 49KB
• domh-20240930_cal.xml (EX-101.CAL) — 41KB
• domh-20240930_def.xml (EX-101.DEF) — 233KB
• domh-20240930_lab.xml (EX-101.LAB) — 422KB
• domh-20240930_pre.xml (EX-101.PRE) — 250KB
• ea0219844-10q_dominari_htm.xml (XML) — 646KB

- Financial Information

Part I - Financial Information Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Condensed Consolidated Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023 1 Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 (Unaudited) 2 Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Equity for the three and nine months ended September 30, 2024 and 2023 (Unaudited) 3 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 (Unaudited) 5 Notes to the Condensed Consolidated Financial Statements (Unaudited) 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3. Quantitative and Qualitative Disclosures About Market Risk 23 Item 4. Controls and Procedures 23 Part II - Other Information Item 1. Legal Proceedings 24 Item 1A. Risk Factors 24 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 24 Item 3. Defaults Upon Senior Securities 24 Item 4. Mine Safety Disclosures 24 Item 5. Other Information 24 Item 6. Exhibits 25

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements DOMINARI HOLDINGS INC. Condensed Consolidated Balance Sheets ($ in thousands except share and per share amounts) (Unaudited) September 30, December 31, 2024 2023 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 3,403 $ 2,833 Marketable securities 3,771 13,547 Deposits with clearing broker 14,181 7,687 Prepaid expenses and other assets 3,121 898 Notes receivable, at fair value - current portion 285 3,177 Total current assets 24,761 28,142 Property and equipment, net 265 344 Notes receivable, at fair value - non-current portion 1,128 1,129 Long Term Equity Investments 13,771 24,150 Right-of-use assets 3,048 3,335 Security deposit 458 458 Total assets $ 43,431 $ 57,558 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $ 1,293 $ 1,036 Accrued salaries and benefits 13 51 Accrued commissions 372 77 Lease liability - current 402 421 Other current liability 336 22 Total current liabilities 2,416 1,607 Lease liability, less current portion 2,748 3,028 Total liabilities 5,164 4,635 Stockholders' equity Preferred stock, $.0001 par value, 50,000,000 authorized Series D: 5,000,000 shares designated; 3,825 shares issued and outstanding as of September 30, 2024 and December 31, 2023; liquidation value of $ 0.0001 per share - - Series D-1: 5,000,000 shares designated; 834 shares issued and outstanding as of September 30, 2024 and December 31, 2023; liquidation value of $ 0.0001 per share - - Common stock, $ 0.0001 par value, 100,000,000 shares authorized; 6,336,286 and 5,995,065 shares issued as of September 30, 2024 and December 31, 2023, respectively; 6,276,138 and 5,934,917 shares outstanding as of September 30, 2024 and December 31, 2023 - - Additional paid-in capital 263,303 262,187 Treasury stock, as of cost, 60,148 shares as of September 30, 2024 and December 31, 2023 (

financial statements

financial statements. 1 DOMINARI HOLDINGS INC. Condensed Consolidated Statements of Operations ($ in thousands except share and per share amounts) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenues $ 4,043 $ 963 $ 11,584 $ 1,034 Operating costs and expenses General and administrative $ 7,239 $ 4,067 $ 20,321 $ 16,980 Research and development - - - 3 Total operating expenses 7,239 4,067 20,321 16,983 Loss from operations ( 3,196 ) ( 3,104 ) ( 8,737 ) ( 15,949 ) Other income (expenses) Interest income 280 208 729 505 Gain (loss) on marketable securities, net 89 ( 150 ) 767 185 Realized and unrealized loss on note receivable, net ( 429 ) - ( 2,086 ) ( 212 ) Change in carrying value of investments ( 955 ) ( 495 ) ( 6,445 ) ( 495 ) Total other expenses ( 1,015 ) ( 437 ) ( 7,035 ) ( 17 ) Net loss $ ( 4,211 ) $ ( 3,541 ) $ ( 15,772 ) $ ( 15,966 ) Net loss per share, basic and diluted Basic and Diluted $ ( 0.67 ) $ ( 0.66 ) $ ( 2.57 ) $ ( 3.09 ) Weighted average number of shares outstanding, basic and diluted Basic and Diluted 6,328,261 5,345,312 6,129,504 5,159,501 See accompanying notes to unaudited condensed consolidated

financial statements

financial statements. 2 DOMINARI HOLDINGS INC. Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Equity ($ in thousands except share and per share amounts) (Unaudited) For the Three Months Ended September 30, 2024 and 2023 Preferred Stock Common Stock Additional Paid-in Treasury Stock Accumulated Total Stockholders' Shares Amount Shares Amount Capital Shares Amount Deficit Equity Balance at June 30, 2024 4,659 $ - 6,304,183 $ - $ 263,184 60,148 $ ( 501 ) $ ( 220,324 ) $ 42,359 Stock-based compensation - - 32,103 - 119 - - - 119 Net loss - - - - - - - ( 4,211 ) ( 4,211 ) Balance at September 30, 2024 4,659 $ - 6,336,286 $ - $ 263,303 60,148 $ ( 501 ) $ ( 224,535 ) $ 38,267 Preferred Stock Common Stock Additional Paid-in Treasury Stock Accumulated Total Stockholders' Shares Amount Shares Amount Capital Shares Amount Deficit Equity Balance at June 30, 2023 4,659 $ - 5,345,312 $ - $ 260,585 60,148 $ ( 501 ) $ ( 198,306 ) $ 61,778 Stock-based compensation - - - 110 - - - 110 Net loss - - - - - - - ( 3,541 ) ( 3,541 ) Balance at September 30, 2023 4,659 $ - 5,345,312 $ - $ 260,695 60,148 $ ( 501 ) $ ( 201,847 ) $ 58,347 See accompanying notes to unaudited condensed consolidated

financial statements

financial statements 3 For the Nine Months Ended September 30, 2024 and 2023 Preferred Stock Common Stock Additional Paid-in Treasury Stock Accumulated Total Stockholders' Shares Amount Shares Amount Capital Shares Amount Deficit Equity Balance at December 31, 2023 4,659 $ - 5,995,065 $ - $ 262,187 60,148 $ ( 501 ) $ ( 208,763 ) $ 52,923 Stock-based compensation - - 341,221 - 1,116 - - - 1,116 Net loss - - - - - - - ( 15,772 ) ( 15,772 ) Balance at September 30, 2024 4,659 $ - 6,336,286 $ - $ 263,303 60,148 $ ( 501 ) $ ( 224,535 ) $ 38,267 Preferred Stock Common Stock Additional Paid-in Treasury Stock Accumulated Total Stockholders' Shares Amount Shares Amount Capital Shares Amount Deficit Equity Balance at December 31, 2022 4,659 $ - 5,485,096 $ - $ 262,970 468,017 $ ( 3,322 ) $ ( 185,881 ) $ 73,767 Stock-based compensation - - 529,715 - 1,485 - - - 1,485 Cancellation of common stock - - ( 25,000 ) - - - - - - Purchase of treasury stock - - - - - 236,630 ( 939 ) - ( 939 ) Retirement of treasury stock - - ( 644,499 ) - ( 3,760 ) ( 644,499 ) 3,760 - - Net loss - - - - - - - ( 15,966 ) ( 15,966 ) Balance at September 30, 2023 4,659 $ - 5,345,312 $ - $ 260,695 60,148 $ ( 501 ) $ ( 201,847 ) $ 58,347 See accompanying notes to unaudited condensed consolidated

financial statements

financial statements. 4 DOMINARI HOLDINGS INC. Condensed Consolidated Statements of Cash Flows ($ in thousands) (Unaudited) Nine Months Ended September 30, 2024 2023 Cash flows from operating activities Net loss $ ( 15,772 ) $ ( 15,966 ) Adjustments to reconcile net loss to net cash used in operating activities: Amortization of right-of-use assets 287 268 Depreciation 79 57 Change in fair value short-term investments - 12 Change in carrying value of long-term investment 6,445 482 Stock-based compensation 1,116 1,485 Realized (gain) loss on marketable securities ( 3,762 ) 1,249 Unrealized (gain) loss on marketable securities 3,361 ( 897 ) Realized and unrealized loss on note receivable 2,086 212 Changes in operating assets and liabilities: Prepaid expenses and other assets 165 ( 229 ) Prepaid acquisition cost - 301 Clearing broker deposits ( 6,494 ) ( 3,622 ) Accounts payable and accrued expenses 257 ( 345 ) Accrued salaries and benefits ( 38 ) ( 628 ) Accrued commissions 295 152 Lease liabilities ( 299 ) 11 Other current liabilities 314 66 Notes receivable, at fair value – net interest accrued 58 ( 96 ) Net cash used in operating activities ( 11,902 ) ( 17,488 ) Cash flows from investing activities Purchase of marketable securities ( 4,007 ) ( 34,068 ) Sale of marketable securities 14,767 24,572 Purchase of fixed assets - ( 419 ) Acquisition of FPS, net of cash acquired and receivable owed from FPS - ( 1,112 ) Collection of principal on note receivable 750 850 Loans to employees ( 2,390 ) ( 107 ) Purchase of short-term and long-term investments ( 150 ) ( 75 ) Redemption of long-term investments 3,500 - Collection of loans to employees 2 - Net cash provided by (used in) investing activities 12,472 ( 10,359 ) Cash flows from financing activities Purchase of treasury stock - ( 939 ) Net cash used in financing activities - ( 93

financial statements

financial statements. 5 DOMINARI HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (Unaudited) Note 1. Organization and Description of Business and Recent Developments Organization and Description of Business Dominari Holdings Inc. (the "Company"), formerly AIkido Pharma, Inc., was founded in 1967 as Spherix Incorporated. Since 2017, the Company operated as a biotechnology company with a diverse portfolio of small-molecule anticancer and antiviral therapeutics and their related patent technology. The Company is in the process of winding down its historical pipeline of biotechnology assets held by Aikido Labs, LLC. In an effort to enhance shareholder value, in June of 2022, the Company formed a wholly owned financial services subsidiary, Dominari Financial Inc. ("Dominari Financial"), with the intent of shifting the Company's primary operating focus away from biotechnology to the fintech and financial services industries. Through Dominari Financial, the Company acquired Dominari Securities LLC ("Dominari Securities"), an introducing broker-dealer, registered with the Financial Industry Regulatory Authority ("FINRA") and an investment adviser registered with the Securities and Exchange Commission ("SEC"). Dominari Securities provides investment advisory services and annuity and insurance products of certain insurance carriers as an insurance agency through independent and affiliated brokers. On September 9, 2022, Dominari Financial entered into a membership interest purchase agreement, as amended and restated on March 27, 2023 (the "FPS Purchase Agreement") with Fieldpoint Private Bank & Trust ("Seller"), a Connecticut bank, for the purchase of its wholly owned subsidiary, Fieldpoint Private Securities, LLC, a Connecticut limited liability company ("FPS"), that is a broker-dealer registered with the Financial Industry Regulatory Authority ("FINRA") and an investment adviser registered with the SEC. Pursuant to the terms of the FPS Purchas

View Full Filing

View this 10-Q filing on SEC EDGAR