Related Party Transactions |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | Note 16. Related Party Transactions
In 2021, the Dominari Holdings engaged the services of Revere Securities, LLC (“Revere”) to assist in the management and building of the Company’s investment processes. Kyle Wool, Chief Executive Officer and one of the Company’s board members, was previously a member of the board of directors of Revere until June 2023 and held approximately 30% of Revere’s outstanding equity until May, 2025. From time to time, the Company participates in offerings of securities as an underwriter in transactions in which Revere also participates as an underwriter. For the three months ended March 31, 2026, there were no such transactions. The Company earned $368,000 in the three months ended March 31, 2025 in transactions, which Revere also participated as an underwriter. As of May 20, 2025, Kyle Wool no longer holds an equity interest in Revere.
During the year December 31, 2024, the Company entered into employee loans with various employees totaling $2.4 million. The terms of the loan agreements range from 3 years to 7 years, with an average annual interest rate of approximately 3.2%. The total interest received for the three months ended March 31, 2026 and 2025 was approximately $17 thousand and $21 thousand, respectively. As of March 31, 2026 and 2025, the total outstanding balance of the employee loans was $1.7 million and $2.0 million, respectively and are included in loans to employees on the accompanying unaudited condensed consolidated balance sheets. Certain of the Company’s investments are made through related party special purpose vehicles (the “Series Funds”). Those Company investments in the Series Funds without readily determinable fair values are accounted for using the measurement alternative and are are classified as long-term equity investments. Approximate carrying values of such related party long-term equity investments was $261 thousand and $150 thousand as of March 31, 2026 and December 31, 2025 respectively. Those Company investments in the Series Funds which have readily determinable fair values are classified as marketable securities with an approximate fair value of $2.3 million as March 31, 2026 and December 31, 2025.
The Company owns 90% of AV Manager and AV Investment Manager, the remaining 10% is owned by non-controlling parties. As such, 10% of any profits earned by these entities are attributable to non-controlling interests and are presented in the unaudited condensed consolidated statements of changes in stockholders’ equity. As of March 31, 2026, the amount attributable to non-controlling interest was $23 thousand. There is $21 thousand payable to non-controlling interests as of March 31, 2026.
The Company earns revenues for managing certain pooled investment vehicles which are related parties. These include the entirety of the management fee revenues totaling $0.3 million and $0.1 million for the three months ended March 31, 2026 and 2025, respectively and are classified as management fees in Note 12 and included in other revenue within the statement of operations. The total amount of contract liabilities disclosed in Note 2 represented amounts received in advance of revenue earned on managing such related party investment vehicles and are listed as contract liabilities in the unaudited condensed statement of financial condition totaling $4.7 million as of March 31, 2026 and $4.5 million as of December 2025.
In the normal course of business, Dominari Securities provides underwriting and brokerage services to the Series Funds. As a result of services provided, the Company recognized approximately $0.4 million in underwriting revenue, $1.1 million in carried interest revenue, and $1.0 million of commission revenue during the three months ended 2026. |