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 loss, as presented within the table below and reconciled to the statement of operations. Additionally, the CODM views the expenses listed below to be significant in their analysis.

 

   Year Ended December 31, 2025 
   Dominari Financial   Legacy Holding Co.   Consolidated 
Revenue  $123,104   $
   $123,104 
Operating Costs               
Compensation and benefits   92,601    52,669    145,270 
Professional and consulting fees   3,107    23,881    26,988 
Other operating expenses   4,059    2,513    6,572 
Income / (loss) from operations   23,337    (79,063)   (55,726)
                
Other (expenses) income               
Other income   
    10    10 
Interest income   
    65    65 
Gain on marketable securities   
    42,276    42,276 
Realized gain on note receivable   
    221    221 
Total other income   
    42,572    42,572 
Net income (/loss) before income taxes   23,337    (36,491)   (13,154)
Provision for income taxes   
    7,318    7,318 
Net income (loss)  $23,337   $(43,809)  $(20,472)
Non-controlling interests   1,963    
    1,963 
Net loss attributable to stockholders  $21,374    (43,809)  $(22,435)
Total assets  $47,372   $65,535   $112,907 
   Year Ended December 31, 2024 
   Dominari Financial   Legacy Holding Co   Consolidated 
Revenue  $20,971   $
   $20,971 
Operating Costs               
Compensation and benefits   17,422    4,558    21,980 
Professional and consulting fees   1,358    1,358    2,716 
Other expenses   3,039    1,938    4,977 
Loss from operations   (848)   (7,854)   (8,702)
                
Other (expenses) income               
Other income   
    86    86 
Interest income   
    293    293 
Gain on marketable securities   
    3,085    3,085 
Unrealized loss on note receivable   
    (2,347)   (2,347)
Change in carrying value of investments   
    (7,118)   (7,118)
Total other (expenses) income   
    (6,001)   (6,001)
Net loss  $(848)  $(13,855)  $(14,703)
Total assets  $20,204   $26,921   $47,125 
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Historical Timeline

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

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.