v3.26.1
Note 17 - Segment Reporting
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 17. Segment Reporting

 

Operating segments are defined as components of an entity for which discrete financial information is available that is regularly reviewed by the Chief Operating Decision Maker (“CODM”), who is the Chief Executive Officer, in deciding how to allocate resources to an individual segment and in assessing performance. The CODM reviews financial information for the purposes of making operating decisions, allocating resources, and evaluating financial performance of the business of the reportable operating segments, based on discrete financial information. The measures of segment profitability that are most relied upon by the CODM are gross revenues and net loss.

 

The Company operates in two reportable business segments: (1) Dominari Financial and (2) Legacy Aikido. The Dominari Financial reportable business segment represents the Company’s broker-dealer business, which is composed of mostly underwriting and transactional service activities. The Legacy Aikido reportable business segment includes Aikido Labs, which manages the investments holdings of the legacy entity. Prior to the FPS Acquisition, the Company operated as a single operating segment comprised of Legacy Aikido.

 

The CODM has access to and regularly reviews internal financial reporting for each business and uses that information to make operational decisions and allocate resources. Accounting policies applied by the reportable segments are the same as those used by the Company and described in the “Summary of Significant Accounting Policies”.

 

The measures of segment profitability that are most relied upon by the CODM are gross revenue and net income (loss), as presented within the table below and reconciled to the unaudited condensed consolidated statement of operations. Additionally, the CODM views the expenses listed below to be significant in their analysis.

 

 

 

Three Months Ended June 30, 2026

 

 

 

Dominari

 

 

Legacy

 

 

 

 

 

 

Financial

 

 

Holding Co.

 

 

Consolidated

 

Revenue

 

$

16,789

 

 

$

-

 

 

$

16,789

 

Operating Costs

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

12,457

 

 

 

1,781

 

 

 

14,238

 

Professional and consulting fees

 

 

-

 

 

 

758

 

 

 

758

 

Other operating expenses

 

 

1,837

 

 

 

1,098

 

 

 

2,935

 

Total operating expenses

 

 

14,294

 

 

 

3,637

 

 

 

17,931

 

Income / (loss) from operations

 

 

2,495

 

 

 

(3,637

)

 

 

(1,142

)

 

 

 

 

 

 

 

 

 

 

Other (expenses) income

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

-

 

 

 

63

 

 

 

63

 

Interest income

 

 

-

 

 

 

49

 

 

 

49

 

Loss on marketable securities

 

 

-

 

 

 

(67

)

 

 

(67

)

Change in fair value of investments

 

 

-

 

 

 

(1,400

)

 

 

(1,400

)

Total other expenses

 

 

-

 

 

 

(1,355

)

 

 

(1,355

)

Net income before income taxes

 

 

2,495

 

 

 

(4,992

)

 

 

(2,497

)

Provision for income taxes

 

 

-

 

 

 

2,354

 

 

 

2,354

 

Net (loss) income before non-controlling interest and deemed dividend

 

$

2,495

 

 

$

(7,346

)

 

$

(4,851

)

Net income attributable to non-controlling interests

 

 

-

 

 

 

(128

)

 

 

(128

)

Common stock deemed dividend - inducement

 

 

-

 

 

 

(425

)

 

 

(425

)

Net income (loss) attributable to stockholders

 

 

2,495

 

 

 

(7,899

)

 

 

(5,404

)

Total assets

 

$

27,418

 

 

$

29,994

 

 

$

57,412

 

 

 

 

Six Months Ended June 30, 2026

 

 

 

Dominari

 

 

Legacy

 

 

 

 

 

 

Financial

 

 

Holding Co.

 

 

Consolidated

 

Revenue

 

$

52,594

 

 

$

-

 

 

$

52,594

 

Operating Costs

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

36,482

 

 

 

45,915

 

 

 

82,397

 

Professional and consulting fees

 

 

1,678

 

 

 

1,477

 

 

 

3,155

 

Other operating expenses

 

 

3,596

 

 

 

2,210

 

 

 

5,806

 

Total operating expenses

 

 

41,756

 

 

 

49,602

 

 

 

91,358

 

Income / (loss) from operations

 

 

10,838

 

 

 

(49,602

)

 

 

(38,764

)

 

 

 

 

 

 

 

 

 

 

Other (expenses) income

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

-

 

 

 

171

 

 

 

171

 

Interest income

 

 

-

 

 

 

110

 

 

 

110

 

Loss on marketable securities

 

 

-

 

 

 

(7,081

)

 

 

(7,081

)

Change in fair value of investments

 

 

-

 

 

 

(1,400

)

 

 

(1,400

)

Total other expenses

 

 

-

 

 

 

(8,200

)

 

 

(8,200

)

Net income (loss) before income taxes

 

 

10,838

 

 

 

(57,802

)

 

 

(46,964

)

Provision for income taxes

 

 

-

 

 

 

15,223

 

 

 

15,223

 

Net (loss) income before non-controlling interest and deemed dividend

 

 

10,838

 

 

 

(73,025

)

 

 

(62,187

)

Non-controlling interests

 

 

-

 

 

 

(150

)

 

 

(150

)

Common stock deemed dividend - inducement

 

 

-

 

 

 

(425

)

 

 

(425

)

Net income (loss) attributable to stockholders

 

$

10,838

 

 

$

(73,600

)

 

$

(62,762

)

Total assets

 

$

27,418

 

 

$

29,994

 

 

$

57,412

 

 

 

 

 

Three Months Ended June 30, 2025

 

 

 

Dominari

 

 

Legacy

 

 

 

 

 

 

Financial

 

 

Holding Co.

 

 

Consolidated

 

Revenue

 

$

38,914

 

 

$

-

 

 

$

38,914

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

29,657

 

 

 

1,117

 

 

$

30,774

 

Professional and consulting fees

 

 

1,684

 

 

 

21,188

 

 

 

22,872

 

Other operating expenses

 

 

339

 

 

 

(215

)

 

 

124

 

Income (loss) from operations

 

 

7,234

 

 

 

(22,090

)

 

 

(14,856

)

 

 

 

 

 

 

 

 

 

 

Other income

 

 

 

 

 

 

 

 

 

Interest income

 

 

-

 

 

 

30

 

 

$

30

 

Gain on marketable securities

 

 

-

 

 

 

806

 

 

 

806

 

Change in carrying value of investments

 

 

-

 

 

 

31,680

 

 

 

31,680

 

Total other income

 

 

-

 

 

 

32,516

 

 

 

32,516

 

Net income before non-controlling interests

 

 

7,234

 

 

 

10,426

 

 

 

17,660

 

Non-controlling interests

 

 

-

 

 

 

(1,050

)

 

 

(1,050

)

Net income attributable to stockholders

 

$

7,234

 

 

$

9,376

 

 

$

16,610

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

46,026

 

 

$

63,312

 

 

$

109,338

 

 

 

 

 

Six Months Ended June 30, 2025

 

 

 

Dominari

 

 

Legacy

 

 

 

 

 

 

Financial

 

 

Holding Co.

 

 

Consolidated

 

Revenue

 

$

46,283

 

 

$

-

 

 

$

46,283

 

Operating Costs

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

37,252

 

 

 

29,923

 

 

 

67,175

 

Professional and consulting fees

 

 

1,738

 

 

 

21,963

 

 

 

23,701

 

Other operating expenses

 

 

2,013

 

 

 

1,133

 

 

 

3,146

 

Income (loss) from operations

 

 

5,280

 

 

 

(53,019

)

 

 

(47,739

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

 

 

 

 

 

 

 

Interest income

 

 

-

 

 

 

51

 

 

 

51

 

Loss on marketable securities

 

 

-

 

 

 

639

 

 

 

639

 

Unrealized gain on note receivable

 

 

-

 

 

 

221

 

 

 

221

 

Change in fair value of investments

 

 

-

 

 

 

32,000

 

 

 

32,000

 

Total other income

 

 

-

 

 

 

32,911

 

 

 

32,911

 

Net income (/loss) before non-controlling interests

 

 

5,280

 

 

 

(20,108

)

 

 

(14,828

)

Non-controlling interests

 

 

-

 

 

 

(1,050

)

 

 

(1,050

)

Net income (loss) attributable to stockholders

 

$

5,280

 

 

$

(21,158

)

 

$

(15,878

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

46,026

 

 

$

63,312

 

 

$

109,338