| Consolidated Investment Products |
Note 3. Consolidated Investment Products Consolidated investment products (“CIPs”) consist primarily of private investment funds which are sponsored by the Company. The Company has no right to the CIPs’ assets, other than its direct equity investments in them and investment management and other fees earned from them. The liabilities of the CIPs have no recourse to the Company’s assets beyond the level of its direct investment, therefore the Company bears no other risks associated with the CIPs’ liabilities. The following supplemental condensed financial information illustrates the consolidating effects of the CIPs on the Company’s financial condition and results of operations as of and for the years ended December 31, 2025 and 2024, respectively:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
Consolidated Company Entities |
|
|
Consolidated Investment Products |
|
|
Eliminations |
|
|
Consolidated |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
36,884 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
36,884 |
|
Fees receivable |
|
|
8,154 |
|
|
|
- |
|
|
|
(1,579 |
) |
|
|
6,575 |
|
Investments, at fair value |
|
|
76,535 |
|
|
|
- |
|
|
|
- |
|
|
|
76,535 |
|
Assets of consolidated investment products |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
- |
|
|
|
45,493 |
|
|
|
- |
|
|
|
45,493 |
|
Investments, at fair value |
|
|
- |
|
|
|
1,708,395 |
|
|
|
- |
|
|
|
1,708,395 |
|
Other assets |
|
|
- |
|
|
|
9,517 |
|
|
|
- |
|
|
|
9,517 |
|
Other investments |
|
|
220,065 |
|
|
|
- |
|
|
|
(199,033 |
) |
|
|
21,032 |
|
Operating lease right-of-use assets |
|
|
6,382 |
|
|
|
|
|
|
|
|
|
6,382 |
|
Property and equipment, net |
|
|
395 |
|
|
|
|
|
|
|
|
|
395 |
|
Prepaid expenses and other assets |
|
|
8,603 |
|
|
|
|
|
|
|
|
|
8,603 |
|
Due from affiliates |
|
|
20 |
|
|
|
|
|
|
(10 |
) |
|
|
10 |
|
Digital assets |
|
|
12,509 |
|
|
|
- |
|
|
|
- |
|
|
|
12,509 |
|
Intangible assets, net |
|
|
41,108 |
|
|
|
- |
|
|
|
- |
|
|
|
41,108 |
|
Goodwill |
|
|
23,373 |
|
|
|
- |
|
|
|
- |
|
|
|
23,373 |
|
Total assets |
|
$ |
434,028 |
|
|
$ |
1,763,405 |
|
|
$ |
(200,622 |
) |
|
$ |
1,996,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities, Noncontrolling Interests, and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable, accrued expenses and other |
|
$ |
12,149 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
12,149 |
|
Accrued third party distribution expenses |
|
|
578 |
|
|
|
- |
|
|
|
- |
|
|
|
578 |
|
Deferred revenue |
|
|
66 |
|
|
|
- |
|
|
|
- |
|
|
|
66 |
|
Liabilities of consolidated investment products |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
|
- |
|
|
|
1,606 |
|
|
|
(10 |
) |
|
|
1,596 |
|
Management fee payable |
|
|
- |
|
|
|
1,580 |
|
|
|
(1,580 |
) |
|
|
- |
|
Other liabilities |
|
|
- |
|
|
|
735 |
|
|
|
- |
|
|
|
735 |
|
Deferred tax liability, net |
|
|
66,345 |
|
|
|
- |
|
|
|
- |
|
|
|
66,345 |
|
Due to affiliates |
|
|
7,689 |
|
|
|
- |
|
|
|
- |
|
|
|
7,689 |
|
Operating lease liability |
|
|
8,248 |
|
|
|
- |
|
|
|
- |
|
|
|
8,248 |
|
Total liabilities |
|
|
95,075 |
|
|
|
3,921 |
|
|
|
(1,590 |
) |
|
|
97,406 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interests |
|
|
- |
|
|
|
1,599,587 |
|
|
|
(39,135 |
) |
|
|
1,560,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity interests |
|
|
338,953 |
|
|
|
159,897 |
|
|
|
(159,897 |
) |
|
|
338,953 |
|
Total liabilities, noncontrolling interests, and shareholders’ equity |
|
$ |
434,028 |
|
|
$ |
1,763,405 |
|
|
$ |
(200,622 |
) |
|
$ |
1,996,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2025 |
|
|
|
Consolidated Company Entities |
|
|
Consolidated Investment Products |
|
|
Eliminations |
|
|
Consolidated |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Management and advisory fees |
|
$ |
79,961 |
|
|
$ |
- |
|
|
$ |
(7,573 |
) |
|
$ |
72,388 |
|
Other income and fees |
|
|
458 |
|
|
|
- |
|
|
|
- |
|
|
|
458 |
|
Total revenue |
|
|
80,419 |
|
|
|
- |
|
|
|
(7,573 |
) |
|
|
72,846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and related employee benefits |
|
|
32,028 |
|
|
|
- |
|
|
|
- |
|
|
|
32,028 |
|
Sales, distribution and marketing |
|
|
15,703 |
|
|
|
- |
|
|
|
- |
|
|
|
15,703 |
|
Depreciation and amortization |
|
|
1,116 |
|
|
|
- |
|
|
|
- |
|
|
|
1,116 |
|
General and administrative expenses |
|
|
10,174 |
|
|
|
- |
|
|
|
- |
|
|
|
10,174 |
|
Expenses of consolidated investment products |
|
|
- |
|
|
|
10,315 |
|
|
|
(7,573 |
) |
|
|
2,742 |
|
Total operating expenses |
|
|
59,021 |
|
|
|
10,315 |
|
|
|
(7,573 |
) |
|
|
61,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
21,398 |
|
|
|
(10,315 |
) |
|
|
- |
|
|
|
11,083 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Equity earnings (losses), net |
|
|
(25,437 |
) |
|
|
- |
|
|
|
20,571 |
|
|
|
(4,866 |
) |
Interest and dividends |
|
|
2,375 |
|
|
|
- |
|
|
|
- |
|
|
|
2,375 |
|
Other income (expense) |
|
|
(1,185 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1,185 |
) |
Investment and other income (losses) of consolidated investment products, net |
|
|
- |
|
|
|
(17,768 |
) |
|
|
- |
|
|
|
(17,768 |
) |
Interest and dividend income of consolidated investment products |
|
|
- |
|
|
|
8,394 |
|
|
|
- |
|
|
|
8,394 |
|
Unrealized (loss) gain on digital assets, net |
|
|
(796 |
) |
|
|
- |
|
|
|
- |
|
|
|
(796 |
) |
Realized gain on investments, net |
|
|
2,398 |
|
|
|
- |
|
|
|
- |
|
|
|
2,398 |
|
Unrealized gain (loss) on investments net |
|
|
(15,554 |
) |
|
|
- |
|
|
|
- |
|
|
|
(15,554 |
) |
Total other income (expense), net |
|
|
(38,199 |
) |
|
|
(9,374 |
) |
|
|
20,571 |
|
|
|
(27,002 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before provision for income taxes |
|
|
(16,801 |
) |
|
|
(19,689 |
) |
|
|
20,571 |
|
|
|
(15,919 |
) |
Income tax (expense) benefit |
|
|
23,219 |
|
|
|
- |
|
|
|
- |
|
|
|
23,219 |
|
Income (loss) from continuing operations, net of tax |
|
|
6,418 |
|
|
|
(19,689 |
) |
|
|
20,571 |
|
|
|
7,300 |
|
Income (loss) from discontinued operations, net of tax |
|
|
(1,300 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1,300 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
5,118 |
|
|
$ |
(19,689 |
) |
|
$ |
20,571 |
|
|
$ |
6,000 |
|
Less: net income attributable to redeemable noncontrolling interests |
|
|
- |
|
|
|
541 |
|
|
|
(1,423 |
) |
|
|
(882 |
) |
Net income (loss) attributable to Horizon Kinetics Holding Corporation |
|
$ |
5,118 |
|
|
$ |
(19,148 |
) |
|
$ |
19,148 |
|
|
$ |
5,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
|
|
Consolidated Company Entities |
|
|
Consolidated Investment Products |
|
|
Eliminations |
|
|
Consolidated |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
14,446 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
14,446 |
|
Fees receivable |
|
|
58,721 |
|
|
|
- |
|
|
|
(50,377 |
) |
|
|
8,344 |
|
Investments, at fair value |
|
|
91,435 |
|
|
|
- |
|
|
|
- |
|
|
|
91,435 |
|
Assets of consolidated investment products |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Cash and cash equivalents |
|
|
- |
|
|
|
44,306 |
|
|
|
- |
|
|
|
44,306 |
|
Investments, at fair value |
|
|
- |
|
|
|
1,746,850 |
|
|
|
- |
|
|
|
1,746,850 |
|
Other assets |
|
|
- |
|
|
|
19,247 |
|
|
|
- |
|
|
|
19,247 |
|
Other investments |
|
|
228,870 |
|
|
|
- |
|
|
|
(215,427 |
) |
|
|
13,443 |
|
Digital assets |
|
|
13,240 |
|
|
|
- |
|
|
|
- |
|
|
|
13,240 |
|
Assets of discontinued operations |
|
|
4,364 |
|
|
|
- |
|
|
|
- |
|
|
|
4,364 |
|
Intangible assets, net |
|
|
42,169 |
|
|
|
- |
|
|
|
- |
|
|
|
42,169 |
|
Goodwill |
|
|
23,373 |
|
|
|
- |
|
|
|
- |
|
|
|
23,373 |
|
Other assets |
|
|
6,967 |
|
|
|
- |
|
|
|
(8 |
) |
|
|
6,959 |
|
Total assets |
|
|
483,585 |
|
|
|
1,810,403 |
|
|
|
(265,812 |
) |
|
|
2,028,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities, Noncontrolling Interests, and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable, accrued expenses and other |
|
$ |
21,547 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
21,547 |
|
Accrued third party distribution expenses |
|
|
6,522 |
|
|
|
- |
|
|
|
- |
|
|
|
6,522 |
|
Deferred revenue |
|
|
222 |
|
|
|
- |
|
|
|
- |
|
|
|
222 |
|
Liabilities of consolidated investment products |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Accounts payable and accrued expenses |
|
|
- |
|
|
|
1,494 |
|
|
|
(8 |
) |
|
|
1,486 |
|
Due to affiliates |
|
|
- |
|
|
|
50,375 |
|
|
|
(50,375 |
) |
|
|
- |
|
Other liabilities |
|
|
- |
|
|
|
2,793 |
|
|
|
- |
|
|
|
2,793 |
|
Deferred tax liability, net |
|
|
95,683 |
|
|
|
- |
|
|
|
- |
|
|
|
95,683 |
|
Due to affiliates |
|
|
11,597 |
|
|
|
- |
|
|
|
- |
|
|
|
11,597 |
|
Liabilities of discontinued operations |
|
|
464 |
|
|
|
- |
|
|
|
- |
|
|
|
464 |
|
Operating lease liability |
|
|
7,379 |
|
|
|
- |
|
|
|
- |
|
|
|
7,379 |
|
Total liabilities |
|
|
143,414 |
|
|
|
54,662 |
|
|
|
(50,383 |
) |
|
|
147,693 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interests |
|
|
- |
|
|
|
1,574,414 |
|
|
|
(34,102 |
) |
|
|
1,540,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity interests |
|
|
340,171 |
|
|
|
181,327 |
|
|
|
(181,327 |
) |
|
|
340,171 |
|
Total liabilities, noncontrolling interests, and shareholders’ equity |
|
$ |
483,585 |
|
|
$ |
1,810,403 |
|
|
$ |
(265,812 |
) |
|
$ |
2,028,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2024 |
|
|
|
Consolidated Company Entities |
|
|
Consolidated Investment Products |
|
|
Eliminations |
|
|
Consolidated |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Management and advisory fees |
|
$ |
111,481 |
|
|
$ |
- |
|
|
$ |
(55,995 |
) |
|
$ |
55,486 |
|
Other income and fees |
|
|
322 |
|
|
|
- |
|
|
|
- |
|
|
|
322 |
|
Total revenue |
|
|
111,803 |
|
|
|
- |
|
|
|
(55,995 |
) |
|
|
55,808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Compensation, related employee benefits, and cost of goods sold |
|
|
37,550 |
|
|
|
- |
|
|
|
- |
|
|
|
37,550 |
|
Sales, distribution and marketing |
|
|
19,093 |
|
|
|
- |
|
|
|
- |
|
|
|
19,093 |
|
Depreciation and amortization |
|
|
1,816 |
|
|
|
- |
|
|
|
- |
|
|
|
1,816 |
|
General and administrative expenses |
|
|
10,197 |
|
|
|
- |
|
|
|
(107 |
) |
|
|
10,090 |
|
Expenses of consolidated investment products |
|
|
- |
|
|
|
10,215 |
|
|
|
(7,896 |
) |
|
|
2,319 |
|
Total operating expenses |
|
|
68,656 |
|
|
|
10,215 |
|
|
|
(8,003 |
) |
|
|
70,868 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
43,147 |
|
|
|
(10,215 |
) |
|
|
(47,992 |
) |
|
|
(15,060 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Equity earnings (losses), net |
|
|
106,603 |
|
|
|
- |
|
|
|
(100,566 |
) |
|
|
6,037 |
|
Interest and dividends |
|
|
1,714 |
|
|
|
- |
|
|
|
- |
|
|
|
1,714 |
|
Other income (expense) |
|
|
(2,985 |
) |
|
|
- |
|
|
|
- |
|
|
|
(2,985 |
) |
Investment and other income (losses) of consolidated investment products, net |
|
|
- |
|
|
|
840,735 |
|
|
|
- |
|
|
|
840,735 |
|
Interest and dividend income of consolidated investment products |
|
|
- |
|
|
|
20,377 |
|
|
|
- |
|
|
|
20,377 |
|
Unrealized (loss) gain on digital assets, net |
|
|
6,984 |
|
|
|
- |
|
|
|
- |
|
|
|
6,984 |
|
Realized gain on investments, net |
|
|
432 |
|
|
|
- |
|
|
|
- |
|
|
|
432 |
|
Unrealized gain (loss) on investments net |
|
|
41,329 |
|
|
|
- |
|
|
|
- |
|
|
|
41,329 |
|
Total other income (expense), net |
|
|
154,077 |
|
|
|
861,112 |
|
|
|
(100,566 |
) |
|
|
914,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before provision for income taxes |
|
|
197,224 |
|
|
|
850,897 |
|
|
|
(148,558 |
) |
|
|
899,563 |
|
Income tax (expense) benefit |
|
|
(104,381 |
) |
|
|
- |
|
|
|
- |
|
|
|
(104,381 |
) |
Income (loss) from continuing operations, net of tax |
|
|
92,843 |
|
|
|
850,897 |
|
|
|
(148,558 |
) |
|
|
795,182 |
|
Income (loss) from discontinued operations, net of tax |
|
|
(371 |
) |
|
|
- |
|
|
|
- |
|
|
|
(371 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
92,472 |
|
|
$ |
850,897 |
|
|
$ |
(148,558 |
) |
|
$ |
794,811 |
|
Less: net income attributable to redeemable noncontrolling interests |
|
|
- |
|
|
|
(762,695 |
) |
|
|
60,356 |
|
|
|
(702,339 |
) |
Net income (loss) attributable to Horizon Kinetics Holding Corporation |
|
$ |
92,472 |
|
|
$ |
88,202 |
|
|
$ |
(88,202 |
) |
|
$ |
92,472 |
|
|