Note 9. Leases

 

On December 1, 2021, the Company entered into a Lease Agreement (the “Company’s Lease”) with Trump Tower Commercial LLC, a New York limited liability company. Under the Company’s Lease, the Company rents a portion of the twenty-second floor at 725 Fifth Avenue, New York, New York (the “22nd Floor Premises”). The Company currently uses the 22nd Floor Premises to run its day-to-day operations. The initial term of the Company’s Lease is seven (7) years commencing on July 11, 2022 (“Commencement Date). Under the Company’s Lease, the Company is required to pay monthly rent, commencing on January 11, 2023, equal to $12,874. Effective for the sixth and seventh years of the Company’s Lease, the rent shall increase to $13,502. The Company took possession of the 22nd Floor Premises on the Commencement Date.

 

On September 23, 2022, Dominari Financial entered into a Lease Agreement (“Dominari Financial’s Lease”) with Trump Tower Commercial LLC, a New York limited liability company. Under Dominari Financial’s Lease, Dominari Financial rents a portion of a floor at 725 Fifth Avenue, New York, New York (the “Premises”). Dominari Financial currently uses the Premises to run its day-to-day operations. The initial term of Dominari Financial’s Lease is seven (7) years commencing on the date that possession of the Premises is delivered to Dominari Financial. Under Dominari Financial’s Lease, Dominari Financial is required to pay monthly rent equal to $49,368. Effective for the sixth and seventh years of Dominari Financial’s Lease, the rent shall increase to $51,868 per month. The Company took possession of the Premises in February 2023.

  

On September 2, 2025, the Company entered into a Lease Agreement (the “Company’s Florida Lease”) with Blue Diamond Towers, LLC, a Delaware limited liability company. Under the Company’s Florida Lease, the Company rents a portion of the first floor designated as Suite 103 of the North Building at 3835 PGA Boulevard in Palm Beach Gardens, Florida, (the “Florida Premises”). The Company will use the Florida Premises as Executive Offices. The initial term of the Company’s Florida Lease is two (2) years commencing on October 1, 2025. Under the Company’s Florida Lease, the Company is required to pay monthly rent, commencing on October 1, 2025, equal to $10,000. Effective for the second year of the Company’s Florida Lease, the rent shall increase to $10,300. The Company took possession of Florida Premises in October 2025. 

 

The tables below represent the Company’s lease assets and liabilities as of December 31, 2025 and 2024:

 

   December 31,   December 31, 
   2025   2024 
Assets:        
Operating lease right-of-use-assets  $2,721   $2,944 
Liabilities:          
Current          
Operating  $554   $410 
Long-term          
Operating   2,287    2,629 
   $2,841   $3,039 

 

The following tables summarize quantitative information about the Company’s operating leases, under the adoption of ASC 842:

 

   December 31,   December 31, 
   2025   2024 
Weighted-average remaining lease term - operating leases (in years)   4.3    5.5 
Weighted-average discount rate - operating leases   10.0%   10.0%

 

 

During the years ended December 31, 2025 and 2024, the Company recorded approximately $0.8 million and $0.8 million, respectively, of lease expense to current period operations. 

 

   Year Ended   Year Ended 
  

December 31,

2025

  

December 31,

2024

 
Operating leases        
Operating lease cost  $741   $712 
Short-term lease rent expense   10    119 
Net rent expense  $751   $831 

Supplemental cash flow information related to leases were as follows:

 

   Year Ended   Year Ended 
   December 31,   December 31, 
   2025   2024 
Operating cash flows - operating leases  $715   $391 
           

 

As of December 31, 2025, future minimum payments during the next five years and thereafter are as follows:

 

   Operating 
   Leases 
Year Ended December 31, 2026  $805 
Year Ended December 31, 2027   801 
Year Ended December 31, 2028   766 
Year Ended December 31, 2029   784 
Year Ended December 31, 2030   377 
Thereafter   
 
Total   3,533 
Less present value discount   (692)
Operating lease liabilities  $2,841 

 

The tables below represent the Company’s lease assets and liabilities as of December 31, 2025 and 2024:

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Apr 15, 2025
2023Apr 1, 2024
2022Mar 31, 2023

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.