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Related Party Transactions
 9 Months Ended
Sep. 30, 2024
Related Party Transactions [Abstract]  
Related Party Transactions

Note 6. Related Party Transactions

 

As of September 30, 2024 and December 31, 2023, amounts due to or due from the Company to related party affiliates is summarized as follows:

 

 

 

September 30, 2024

 

 

December 31, 2023

 

 

 

Receivable

 

 

Payable

 

 

Receivable

 

 

Payable

 

Horizon Common Inc.

 

$

-

 

 

$

(6,949

)

 

$

17

 

 

$

(6,899

)

Kinetics Common Inc.

 

 

-

 

 

 

-

 

 

 

66

 

 

 

-

 

Kinetics Holding Corporation

 

 

-

 

 

 

-

 

 

 

42

 

 

 

-

 

Proprietary funds

 

 

116

 

 

 

-

 

 

 

120

 

 

 

(7

)

FRMO Corporation

 

 

-

 

 

 

(2,480

)

 

 

-

 

 

 

(3,040

)

HM Tech

 

 

-

 

 

 

-

 

 

 

2,089

 

 

 

-

 

Other affiliated entities

 

 

-

 

 

 

-

 

 

 

326

 

 

 

(20

)

 

$

116

 

 

$

(9,429

)

 

$

2,660

 

 

$

(9,966

)

 

For the three and nine months ended September 30, 2024 and 2023, amounts recognized from related party affiliates is summarized as follows:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

Revenues

 

 

Expenses

 

 

Revenues

 

 

Expenses

 

 

Revenues

 

 

Expenses

 

 

Revenues

 

 

Expenses

 

Proprietary funds

 

$

10,194

 

 

$

-

 

 

$

8,377

 

 

$

-

 

 

$

26,997

 

 

$

-

 

 

$

25,996

 

 

$

-

 

FRMO Corporation

 

 

2

 

 

 

642

 

 

 

-

 

 

 

547

 

 

 

9

 

 

 

1,802

 

 

 

-

 

 

 

1,752

 

Consensus Mining & Seigniorage Corp

 

 

3

 

 

 

-

 

 

 

3

 

 

 

-

 

 

 

9

 

 

 

-

 

 

 

9

 

 

 

-

 

HM Tech

 

 

-

 

 

 

3

 

 

 

-

 

 

 

6

 

 

 

-

 

 

 

10

 

 

 

-

 

 

 

23

 

 

$

10,199

 

 

$

645

 

 

$

8,380

 

 

$

553

 

 

$

27,015

 

 

$

1,812

 

 

$

26,005

 

 

$

1,775

 

 

Certain co-founders of HK LLC are also shareholders of FRMO Corporation (“FRMO”). FRMO has a right to a 4.2% share of the Company’s gross revenue (prior to any commission sharing agreements) and a 4.95% ownership interest. The Company’s expenses under this agreement are included with Sales, distribution and marketing expenses in the condensed consolidated statement of operations.

The Company has waived, or provides discounted management and advisory fees, for assets under management in proprietary funds or separately managed accounts for Shareholders’ and their direct families, FRMO, Horizon Common Inc., Kinetics Holding Corporation and employees of the Company.

The Company owns an equity interest and has advanced funds in exchange for notes receivable to HM Tech, a service provider for digital asset mining operations. The Company has also recently agreed to guarantee a $0.3 million Promissory Note receivable from HM Tech LLC issued to Consensus Mining & Seigniorage Corporation in the event of default.