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Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases

Note 10. 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 will rent a portion of the twenty-second floor at 725 Fifth Avenue, New York, New York (the “22nd Floor Premises”). The Company plans to use 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 will 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 entered into a Lease Agreement (“Dominari’s Lease”) with Trump Tower Commercial LLC, a New York limited liability company. Under Dominari’s Lease, Dominari will rent a portion of a floor at 725 Fifth Avenue, New York, New York (the “Premises”). Dominari plans to use the Premises to run its day-to-day operations. The initial term of Dominari’s Lease is seven (7) years commencing on the date that possession of the Premises is delivered to Dominari. Under Dominari’s Lease, Dominari will pay monthly rent equal to $49,368. Effective for the sixth and seventh years of Dominari’s Lease, the rent shall increase to $51,868 per month. The Company has taken possession of the Premises in February 2023.

 

The tables below represent the Company’s lease assets and liabilities as of December 31, 2022:

 

   December 31,
2022		 
Assets:    
Operating lease right-of-use-assets  $    919 
      
Liabilities:     
Current     
Operating   82 
Long-term     
Operating   680 
   $762 

 

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

 

   December 31,
2022		 
Weighted-average remaining lease term - operating leases (in years)   7.1 
Weighted-average discount rate - operating leases   10.0%

 

During the year ended December 31, 2022, the Company recorded approximately $0.1 million as lease expense to current period operations.

 

   Year Ended
December 31,
2022		 
Operating leases    
Operating lease cost  $       73 
Variable lease cost   
-
 
Operating lease expense   73 
Short-term lease rent expense   67 
Net rent expense  $140 

 

Supplemental cash flow information related to leases were as follows:

 

   Year Ended
December 31,
2022		 
Operating cash flows - operating leases  $231 
Right-of-use assets obtained in exchange for operating lease liabilities  $960 

 

As of December 31, 2022, future minimum payments during the next five years and thereafter are as follows:

 

   Operating
Leases		 
Remaining Period Ended December 31, 2023  $154 
Year Ended December 31, 2024   154 
Year Ended December 31, 2025   142 
Year Ended December 31, 2026   142 
Year Ended December 31, 2027   142 
Thereafter   337 
Total   1,071 
Less present value discount   (309)
Operating lease liabilities  $762