Dominari (DOMH) - 2024 Q2 - Quarterly Report

Financial Performance - Total revenues for the three months ended June 30, 2024, were $6,174,000, compared to$7,541,000 for the same period in 2023, representing a decrease of approximately 18.1%[7] - The net loss for the three months ended June 30, 2024, was $6,120,000, compared to a net loss of$8,663,000 for the same period in 2023, indicating an improvement of approximately 29.0%[7] - The company reported a basic and diluted net loss per share of $1.01 for the three months ended June 30, 2024, compared to$1.79 for the same period in 2023, showing an improvement of approximately 43.4%[7] - For the six months ended June 30, 2024, the net loss was $11,561,000, compared to a net loss of$12,425,000 for the same period in 2023, representing a 7% improvement[12] - The net loss for the six months ended June 30, 2024, was approximately $11.6 million, compared to a net loss of$12.8 million for the same period in 2023, showing a slight improvement[95] Assets and Liabilities - Total current assets increased to $28,765,000 as of June 30, 2024, from$28,142,000 as of December 31, 2023, reflecting a growth of about 2.2%[6] - Total liabilities rose to $6,714,000 as of June 30, 2024, compared to$4,635,000 as of December 31, 2023, marking an increase of approximately 44.8%[6] - The accumulated deficit increased to $220,324,000 as of June 30, 2024, from$208,763,000 as of December 31, 2023, representing a rise of about 5.5%[6] - Cash and cash equivalents increased to $5,802,000 as of June 30, 2024, from$2,833,000 as of December 31, 2023, indicating a significant increase of approximately 104.2%[6] - The total stockholders' equity decreased to $42,359,000 as of June 30, 2024, from$52,923,000 as of December 31, 2023, reflecting a decline of about 20.0%[6] Revenue and Operations - For the three months ended June 30, 2024, the company recognized approximately $6.2 million in revenue from operations, a significant increase from$71,000 in the same period in 2023[93] - For the six months ended June 30, 2024, the company recognized approximately $7.5 million in revenue from operations, up from$71,000 in the same period in 2023[95] - The company incurred a loss from operations of approximately $2.7 million for the three months ended June 30, 2024, compared to a loss of$9.0 million in the same period in 2023[93] Investments and Fair Value - The company reported a change in the fair value of long-term investments of $5,490,000 for the six months ended June 30, 2024, with no comparable figure for the prior year[12] - The investment in Tevva Motors was impaired by approximately$2.8 million, resulting in a valuation of $0 as of June 30, 2024[40] - The investment in Tesspay was valued at$3.4 million as of June 30, 2024, reflecting an unrealized gain of $0.7 million for the first six months of 2024[41] - The Company’s long-term equity investments totaled$24.15 million as of June 30, 2024, compared to $20.92 million as of December 31, 2023[33] Cash Flow and Financing - Cash used in operating activities for the six months ended June 30, 2024, was$7,185,000, a decrease from $13,913,000 in the prior year, indicating a 48$2,969,000 for the six months ended June 30, 2024, compared to a decrease of $29,576,000 in the same period of 2023[12] - Cash provided by investing activities for the six months ended June 30, 2024, was approximately$10.2 million, compared to cash used of $(14.7) million in the same period of 2023, mainly driven by sales of marketable securities totaling approximately$11.6 million[102] Corporate Strategy and Focus - Dominari Holdings Inc. has shifted its primary focus from biotechnology to fintech and financial services, establishing Dominari Financial Inc. and acquiring Dominari Securities LLC[14] - The company is winding down its historical pipeline of biotechnology assets held by Aikido Labs, LLC, focusing on its financial services strategy[90] - The company has entered into a joint venture with Heritage Strategies LLC to offer various insurance products and services, enhancing its market presence[89] Internal Controls and Legal Matters - The company experienced a material weakness in internal controls over financial reporting, affecting the accounting for certain notes receivable and long-term investments[106] - The company is facing legal proceedings related to the hiring of new registered representatives, with potential liabilities that cannot be reasonably estimated at this time[110] - The company plans to enhance controls over accounting issues by consulting with experienced third-party professionals to remediate identified weaknesses[106] Lease Agreements - The Company entered into a lease agreement with Trump Tower Commercial LLC, requiring monthly rent of $12,874, increasing to$13,502 in the sixth and seventh years[59] - Dominari Financial's lease agreement requires monthly rent of $49,368, increasing to$51,868 in the sixth and seventh years[60] - As of June 30, 2024, the company reported operating lease right-of-use assets of $3,146 million and total operating lease liabilities of$3,244 million[61]