Dominari Holdings Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company, which transitioned from biotechnology to financial services in June 2022, generated revenues of $4,043,000 for the three months ended September 30, 2024, a substantial increase from $963,000 in the same period of 2023. For the nine months ended September 30, 2024, revenues reached $11,584,000, compared to $1,034,000 in the prior year.

Despite the revenue growth, Dominari Holdings experienced a net loss of $4,211,000 for the third quarter of 2024, up from a loss of $3,541,000 in the same quarter of 2023. For the nine-month period, the net loss was $15,772,000, slightly improved from $15,966,000 in the previous year. The loss from operations for the three months ended September 30, 2024, was $(3,196,000), compared to $(3,104,000) in 2023, while the nine-month loss from operations decreased to $(8,737,000) from $(15,949,000).

The company’s total assets decreased to $43,431,000 as of September 30, 2024, down from $57,558,000 at the end of 2023. Total current assets also fell to $24,761,000 from $28,142,000, while total stockholders’ equity declined to $38,267,000 from $52,923,000. Cash and cash equivalents increased to $3,403,000 from $2,833,000 during the same period.

Strategically, Dominari Holdings has made notable acquisitions, including the purchase of Dominari Securities LLC, a registered broker-dealer and investment adviser, in March 2023. The company also formed a joint venture with Heritage Strategies LLC in May 2024, focusing on insurance products and services. Additionally, Dominari Financial Inc. was established to drive growth in the financial services sector.

The company reported a net cash used in operating activities of $(11,902,000) for the nine months ended September 30, 2024, an improvement from $(17,488,000) in the same period of 2023. Cash provided by investing activities was approximately $12,500,000, primarily from sales of marketable securities, contrasting with net cash used of $(10,400,000) in the previous year.

As of September 30, 2024, Dominari Holdings had a material weakness in its internal controls, particularly in accounting for notes receivable and long-term investments. The company is taking steps to address these issues by enhancing its internal accounting personnel and engaging external specialists.