v3.25.3
Related Party Transactions
 9 Months Ended
Sep. 30, 2025
Related Party Transactions [Abstract]  
Related Party Transactions

Note 6. Related Party Transactions

 

As of September 30, 2025 and December 31, 2024, amounts due to or due from the Company to related party affiliates is summarized as follows:

 

 

 

September 30, 2025

 

 

December 31, 2024

 

 

 

Receivable

 

 

Payable

 

 

Receivable

 

 

Payable

 

Horizon Common Inc.

 

$

-

 

 

$

6,902

 

 

$

-

 

 

$

6,948

 

Proprietary funds

 

 

16

 

 

 

-

 

 

 

27

 

 

 

-

 

FRMO Corporation

 

 

12

 

 

 

848

 

 

 

-

 

 

 

4,649

 

Other affiliated entities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

$

28

 

 

$

7,750

 

 

$

27

 

 

$

11,597

 

 

 

For the three and nine months ended September 30, 2025 and 2024, amounts recognized from related party affiliates is summarized as follows:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

Revenues

 

 

Expenses

 

 

Revenues

 

 

Expenses

 

 

Revenues

 

 

Expenses

 

 

Revenues

 

 

Expenses

 

Proprietary funds

 

$

13,720

 

 

$

-

 

 

$

10,194

 

 

$

-

 

 

$

43,258

 

 

$

-

 

 

$

26,997

 

 

$

-

 

FRMO Corporation

 

 

2

 

 

 

849

 

 

 

2

 

 

 

642

 

 

 

8

 

 

 

2,671

 

 

 

9

 

 

 

1,802

 

Consensus Mining & Seigniorage Corp

 

 

3

 

 

 

-

 

 

 

3

 

 

 

-

 

 

 

9

 

 

 

-

 

 

 

9

 

 

 

-

 

HM Tech

 

 

-

 

 

 

1

 

 

 

-

 

 

 

3

 

 

 

-

 

 

 

6

 

 

 

-

 

 

 

10

 

 

$

13,725

 

 

$

850

 

 

$

10,199

 

 

$

645

 

 

$

43,275

 

 

$

2,677

 

 

$

27,015

 

 

$

1,812

 

 

Certain co-founders of the Company 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 4.4% 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 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 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.