Financial Performance - Net loss attributable to common shareholders for the three months ended March 31, 2023, was $3,762 thousand, compared to a net loss of $6,544 thousand for the same period in 2022, indicating an improvement of approximately 42.2%[12] - Basic and diluted net loss per share improved from $(1.25) in Q1 2022 to $(0.71) in Q1 2023, reflecting a reduction of 43.2%[12] - The net loss for the three months ended March 31, 2023, was $3.762 million, compared to a net loss of $3.535 million for the same period in 2022[21] - For the three months ended March 31, 2023, the company recorded a realized loss of $56,000 and an unrealized loss of $130,000 on marketable securities, with total losses amounting to $65,000[51] - The company reported a net loss of approximately $3.8 million for the three months ended March 31, 2023[128] Cash and Liquidity - Cash and cash equivalents significantly decreased from $33,174 thousand to $9,533 thousand, representing a decline of about 71.3%[10] - The cash and cash equivalents at the end of the period were $9.533 million, down from $70.639 million at the end of the same period in 2022[21] - The company has adequate cash to fund its operations for at least the next twelve months[27] - As of March 31, 2023, the company's working capital was approximately $43.8 million[127] - For the three months ended March 31, 2023, net cash used in operating activities was approximately $4.0 million, compared to $3.8 million for the same period in 2022[128] Expenses - General and administrative expenses rose to $3,833 thousand in Q1 2023, up from $1,787 thousand in Q1 2022, marking an increase of about 114.0%[12] - The company reported total operating expenses of $3,834 thousand for Q1 2023, slightly up from $3,803 thousand in Q1 2022, an increase of approximately 0.8%[12] - The company incurred approximately $2.0 million in increased general and administrative expenses, driven by professional fees and increased compensation expenses[126] - The company recognized other income of approximately $0.07 million for the three months ended March 31, 2023, compared to $0.3 million in the same period in 2022, primarily due to volatility in investment valuations[125] Assets and Liabilities - Total current assets decreased from $50,656 thousand as of December 31, 2022, to $44,771 thousand as of March 31, 2023, a decline of approximately 11.7%[10] - Total liabilities increased from $2,469 thousand as of December 31, 2022, to $5,083 thousand as of March 31, 2023, an increase of approximately 105.5%[10] - Total stockholders' equity decreased from $73,767 thousand as of December 31, 2022, to $69,071 thousand as of March 31, 2023, a decline of about 6.4%[10] Investments - The investment in Kerna Health Inc. was valued at $4.9 million as of March 31, 2023, with no change in value since December 31, 2022[54] - The investment in Tevva Motors was valued at approximately $2.8 million as of March 31, 2023, reflecting no change in value since December 31, 2022[61] - The total value of long-term investments remained unchanged at $23.103 million as of March 31, 2023[54] - The investment in Epic Games was valued at $3.5 million as of March 31, 2023, with no unrealized gain or loss recorded during the period[68] - The investment in SpaceX was valued at approximately $3.7 million as of March 31, 2023, reflecting an unrealized gain of approximately $0.6 million[71] Acquisitions - The company acquired all assets and liabilities of Fieldpoint Private Securities, LLC (FPS) for approximately $3.4 million, with a net cash paid of $1.149 million[21][44] - The FPS acquisition was completed on March 27, 2023, following the approval of the change of ownership by FINRA[44] - The total assets acquired from FPS amounted to $3.784 million, while total liabilities assumed were $360,000, resulting in total net assets of $3.424 million from the acquisition[49] - The company incurred approximately $0.3 million in transaction costs related to the FPS acquisition, which are included in general and administrative expenses[47] Shareholder Actions - The company repurchased 236,630 shares at a cost of approximately $0.9 million, averaging $3.97 per share, under its Share Buyback Program during the three months ended March 31, 2023[102] - The company retired 644,499 shares of treasury stock with an original cost of approximately $3.8 million on March 6, 2023[103] Strategic Focus - Dominari Holdings Inc. continues to focus on shifting its primary operating focus from biotechnology to fintech and financial services[23] - The company is winding down its historical pipeline of biotechnology assets while exploring opportunities in high-growth industries through its subsidiary Aikido Labs[24] - The company did not provide proforma disclosures for the FPS acquisition as it did not significantly impact financial results[50] Internal Controls - The company has not made any changes to its internal control over financial reporting that materially affected its effectiveness during the quarter ended March 31, 2023[136] - The company concluded that its internal control over financial reporting was effective as of March 31, 2023[142]
Dominari (DOMH) - 2023 Q1 - Quarterly Report