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Dominari (DOMH) - 2023 Q4 - Annual Report
DOMHDominari (DOMH)2024-04-01 11:49

Financial Performance - For the fiscal year ended December 31, 2023, the company recognized approximately 2.0millioninrevenuefromoperations,primarilydrivenbyunderwritingrevenuefromDominariSecurities[155].−Thecompanyincurredalossfromoperationsofapproximately2.0 million in revenue from operations, primarily driven by underwriting revenue from Dominari Securities[155]. - The company incurred a loss from operations of approximately 21.8 million in 2023, compared to a loss of 14.3millionin2022,indicatinganincreaseinoperationallosses[155].−Generalandadministrativeexpensesincreasedbyapproximately14.3 million in 2022, indicating an increase in operational losses[155]. - General and administrative expenses increased by approximately 12.2 million, largely due to professional fees and increased compensation expenses related to the establishment of Dominari Financial and Dominari Securities[157]. - Research and development expenses decreased by approximately 2.7million,reflectingthecompany′sstrategicshiftawayfromthebiotechnologyindustrytowardsfinancialservices[157].−NetcashusedinoperationsfortheyearendedDecember31,2023,wasapproximately2.7 million, reflecting the company's strategic shift away from the biotechnology industry towards financial services[157]. - Net cash used in operations for the year ended December 31, 2023, was approximately 22.2 million, compared to 10.6millionin2022,primarilyduetoanetlossofapproximately10.6 million in 2022, primarily due to a net loss of approximately 22.9 million[162]. Working Capital and Cash Flow - As of December 31, 2023, the company's working capital amounted to approximately 26.5million,withexpectationsthatcashandcashequivalentswillmeetcapitalrequirementsforatleastthenext12months[159].−Netcashusedininvestingactivitiesfor2023wasapproximately26.5 million, with expectations that cash and cash equivalents will meet capital requirements for at least the next 12 months[159]. - Net cash used in investing activities for 2023 was approximately 7.2 million, down from 14.6millionin2022[163].−Cashusedininvestingactivitiesin2023includedpurchasesofmarketablesecuritiesofapproximately14.6 million in 2022[163]. - Cash used in investing activities in 2023 included purchases of marketable securities of approximately 34.1 million and acquisition of FPS for approximately 1.1million[163].−Cashusedinfinancingactivitiesfor2023wasapproximately1.1 million[163]. - Cash used in financing activities for 2023 was approximately 0.9 million, reflecting the cost for the purchase of treasury stock[164]. - In 2022, cash used in financing activities was approximately 7.2million,primarilyduetotheredemptionofSeriesOandSeriesPRedeemableConvertiblePreferredStockcostingapproximately7.2 million, primarily due to the redemption of Series O and Series P Redeemable Convertible Preferred Stock costing approximately 22.0 million[164]. - The company sold marketable securities worth approximately 27.6millionin2023,partiallyoffsettingcashusedininvestingactivities[163].−Thecompanycollectedapproximately27.6 million in 2023, partially offsetting cash used in investing activities[163]. - The company collected approximately 1.1 million on note receivable in 2023, contributing to cash flow from investing activities[163]. - In 2022, cash used in investing activities included purchases of marketable securities of approximately 26.8millionandinvestmentsofapproximately26.8 million and investments of approximately 15.0 million[163]. Strategic Initiatives - The company completed the acquisition of 100% of a dually-registered broker-dealer and investment advisor, renamed Dominari Securities, on March 27, 2023, as part of its growth strategy in the financial services industry[141]. - The company is winding down its historical pipeline of biotechnology assets held by Aikido Labs, LLC, which includes prospective treatments for various diseases[142]. Accounting and Compliance - The company is evaluating the impact of new accounting standards, including ASU 2022-03, which clarifies the fair value measurement of equity securities subject to contractual sale restrictions[153]. - The company had no contractual obligations reported[165]. - As a smaller reporting company, the company is not required to provide market risk disclosures[166]. Marketable Securities - The company recognized a gain of approximately $0.6 million on marketable securities for the year ended December 31, 2023, a significant improvement from the previous year's losses[156].