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Leases
 9 Months Ended
Sep. 30, 2023
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 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.

  

The tables below represent the Company’s lease assets and liabilities as of September 30, 2023:

 

   September 30,
2023		 
Assets:    
Operating lease right-of-use-assets  $3,426 
      
Liabilities:     
Current     
Operating   411 
Long-term     
Operating   3,137 
   $3,548 

 

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

 

  

September 30,
2023

 
Weighted-average remaining lease term – operating leases (in years)   6.7 
Weighted-average discount rate – operating leases   10.0%

 

During the nine months ended September 30, 2023, the Company recorded approximately $0.6 million of lease expense to current period operations.

 

   Three Months
Ended		   Nine Months
Ended		 
   September 30,
2023		   September 30,
2023		 
Operating leases        
Operating lease cost  $179   $490 
Operating lease expense   179    490 
Short-term lease rent expense   33    96 
Net rent expense  $212   $586 

 

Supplemental cash flow information related to leases were as follows:

 

   Nine Months
Ended		 
   September 30,
2023		 
Operating cash flows - operating leases  $209 
Right-of-use assets obtained in exchange for operating lease liabilities  $2,780 

 

As of September 30, 2023, future minimum payments during the next five years and thereafter are as follows:

 

   Operating 
   Leases 
Remaining Period Ended December 31, 2023  $188 
Year Ended December 31, 2024   747 
Year Ended December 31, 2025   685 
Year Ended December 31, 2026   685 
Year Ended December 31, 2027   685 
Year Ended December 31, 2028   766 
Thereafter   1,160 
Total   4,916 
Less present value discount   (1,368)
Operating lease liabilities  $3,548