v3.25.4
Related Party Transactions
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
Related Party Transactions

Note 8. Related Party Transactions

 

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

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

Receivable

 

 

Payable

 

 

Receivable

 

 

Payable

 

Horizon Common Inc.

 

$

-

 

 

$

6,902

 

 

$

-

 

 

$

6,948

 

Proprietary funds

 

 

5

 

 

 

-

 

 

 

27

 

 

 

-

 

FRMO Corporation

 

 

5

 

 

 

787

 

 

 

-

 

 

 

4,649

 

 

$

10

 

 

$

7,689

 

 

$

27

 

 

$

11,597

 

 

For the years ended December 31, 2025 and 2024, amounts recognized from related party affiliates is summarized as follows:

 

 

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

Revenues

 

 

Expenses

 

 

Revenues

 

 

Expenses

 

Proprietary funds

 

$

762

 

 

$

-

 

 

$

2,012

 

 

$

-

 

FRMO Corporation

 

 

8

 

 

 

3,458

 

 

 

9

 

 

 

3,971

 

Consensus Mining & Seigniorage Corp

 

 

14

 

 

 

-

 

 

 

12

 

 

 

-

 

HM Tech

 

 

-

 

 

 

9

 

 

 

-

 

 

 

14

 

 

$

784

 

 

$

3,467

 

 

$

2,033

 

 

$

3,985

 

 

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 4.4% ownership interest. The Company’s expenses under this agreement are included with Sales, distribution and marketing expenses in the consolidated statement of operations.

 

The Company has waived, or provides discounted management and advisory fees, for assets under management in private 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.