THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES VANCOUVER, BC / ACCESS Newswire / September 8, 2025 / Forte Group Holdings Inc. (CSE:FGH)(OTC:FGHFF)(FSE:7BC0, WKN:A40L1Z)("Forte Group" or the "Company"), a next-generation beverage and nutraceutical company focused on longevity and human performance, announces that, further to its news release dated August 28, 2025 (the "Initial Disclosure"), which outlined a series of proposed initiatives aimed at s ...

Forte Group Strengthens Balance Sheet With the Conversion of Promissory Notes and Mortgage ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (State or Other Jurisdiction of (IRS Employer Incorporation or Organization) Identification Number) (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13906 FG GROUP HOLDINGS INC ...

Financial Performance - Net revenues for Q2 2023 were $18.0 million, a 97.1% increase from $9.1 million in Q2 2022[126]. - For the six months ended June 30, 2023, net revenues were $28.1 million, a 46.8% increase from $19.2 million in the same period of 2022[126]. - Total net revenues for the first half of 2023 were $28.1 million, a 46.8% increase from $19.2 million in the first half of 2022[147]. - Revenue from Strong Entertainment segment more than doubled to $17.8 million in Q2 2023 from $8.8 million in Q2 2022, driven by a $7.3 million increase in service revenue[129]. - Revenue from Strong Entertainment increased 49.9% to $27.8 million in H1 2023, driven by $1.2 million in product sales and an $8.0 million increase in service revenue[149]. Profitability - Gross profit for Q2 2023 was $7.4 million, representing a 207.7% increase from $2.4 million in Q2 2022, with a gross profit margin of 41.3%[133]. - Gross profit from Strong Entertainment segment was $7.3 million, or 40.7% of revenues, in Q2 2023 compared to $2.1 million, or 23.8%, in Q2 2022[135]. - Gross profit from service revenue was $5.1 million or 54.1% of revenues for Q2 2023, up from $0.2 million or 11.6% in Q2 2022[137]. - Consolidated gross profit for the first half of 2023 was $9.9 million, representing 35.3% of revenue, compared to $4.9 million or 25.7% in the same period of 2022[153]. - Gross profit from product sales was $3.9 million or 25.0% of revenues for H1 2023, slightly down from $3.7 million or 25.7% in H1 2022[156]. Losses and Expenses - The net loss attributable to FG Group Holdings for Q2 2023 was $5.3 million, a 5.8% improvement from a net loss of $5.6 million in Q2 2022[126]. - Net loss attributable to FG Group Holdings was $9.3 million, or $0.48 per share, in the first half of 2023, compared to a net loss of $6.4 million, or $0.33 per share, in the first half of 2022[164]. - Total other expense for H1 2023 was $5.1 million, primarily due to a $4.5 million unrealized loss on equity holdings[162]. - Consolidated loss from operations was $0.8 million in Q2 2023, a slight improvement from a loss of $0.9 million in Q2 2022[139]. Cash Flow and Liquidity - The company ended Q2 2023 with total cash and cash equivalents of $5.0 million, up from $3.8 million at the end of 2022[165]. - Net cash used in operating activities decreased to $2.6 million for the six months ended June 30, 2023, compared to $3.0 million for the same period in 2022, primarily due to improvements in working capital[168]. - Net cash provided by investing activities was $0.2 million during the six months ended June 30, 2023, consisting of proceeds from the sale of equity securities[169]. - Net cash provided by financing activities was $3.9 million during the six months ended June 30, 2023, primarily from net proceeds of $2.4 million from the Strong Global Entertainment IPO[170]. - Cash flows from operating activities improved due to the collection of accounts receivable and customer deposits, despite higher vendor payments[168]. Strategic Plans and Investments - The company plans to manage the Strong Entertainment business segment to grow market share and organic revenue[121]. - The company continues to evaluate capital allocation opportunities for investments in public or private companies and potential acquisitions[123]. - The company expects existing sources of liquidity to meet projected capital needs for at least the next twelve months, but future cash requirements may depend on revenue levels and market conditions[167]. - The company may need additional liquidity in the event of market deterioration or declines in net sales, which could require evaluating available alternatives[167]. Credit and Borrowings - Strong/MDI entered into a 2023 Credit Agreement with CIBC, consisting of a revolving line of credit for up to CAD$5.0 million and a 20-year installment loan for up to CAD$3.1 million[166]. - As of June 30, 2023, total borrowings under the 2023 Credit Agreement amounted to CAD$3.6 million[166]. - The 2023 Credit Agreement requires a liabilities to effective equity ratio not exceeding 2.5 to 1 and a fixed charge coverage ratio of not less than 1.1 times[166]. Accounting and Reporting - No significant changes in critical accounting policies during the six months ended June 30, 2023[184]. - The company is classified as a "smaller reporting company" under Regulation S-K, thus not applicable for certain market risk disclosures[185].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13906 FG GROUP HOLDINGS INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of (IRS Employer I ...

Financial Data and Key Metrics Changes - The company reported a 17% increase in revenue, a 52% increase in gross profit, and an almost 180% increase in adjusted EBITDA compared to the prior year [10][11][40] - The debt balance was approximately $8 million, primarily related to real estate in Atlanta and Quebec [12] Business Line Data and Key Metrics Changes - The Strong Entertainment operating business experienced over 50% growth in annual revenues, with Q4 revenue reaching the highest level since COVID [48] - The Technical Services Group grew by 41% for the quarter, driven by increased demand for services related to laser upgrades [6][10] - Strong Studios launched its first project, generating $900,000 in revenue during the quarter [11][89] Market Data and Key Metrics Changes - Box office revenues increased by over 60% from 2021, trending closer to pre-COVID levels [32] - The cinema industry is expected to see a significant increase in film releases, with major exhibitors like Cinemark and AMC projecting substantial growth in 2023 [5][32] Company Strategy and Development Direction - The company is transitioning to a holding company structure, aiming to create meaningful value for shareholders and capitalize on growth opportunities in the entertainment sector [14][27] - The focus is on expanding service offerings, particularly in screen installation and project management, to enhance customer service and drive growth [16][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the cinema industry, citing strong demand and a robust film release calendar for 2023 [5][32] - The company is well-positioned to benefit from the ongoing upgrade cycle in cinema technology, particularly with laser projection [50][33] Other Important Information - The company signed exclusive arrangements with major exhibitors, solidifying its market position and increasing market share [31] - The company is exploring various options for liquidity, including potential sales of real estate and leveraging credit facilities [63][67] Q&A Session Summary Question: How does the company handle screen installation? - The company has traditionally not provided installation services but is now expanding to offer these services in response to customer demand for a one-stop shop [42][16] Question: What are the levers available for raising cash? - The company has multiple options for accessing capital, including leveraging credit lines and potential sales of real estate [62][67] Question: What was the $900,000 project with Strong Studios? - The project was "Inside the Black Box," a limited series that generated revenue without significant capital risk [89] Question: How does the company view the impact of a potential recession? - Historically, the cinema business has shown resilience during recessions, and management expects this trend to continue [92] Question: What is the company's strategy regarding potential IPOs or mergers? - The company is exploring various strategic options, including IPOs and mergers with larger entertainment companies, to enhance value [87][88]

Revenue Growth - Net revenues increased by 52.6% to $41.2 million in 2022 from $27.0 million in 2021, primarily due to the recovery of the Strong Entertainment business and the commencement of Strong Studios operations [140] - Revenue from Strong Entertainment rose 54.0% to $39.9 million in 2022, driven by a $10.5 million increase in product revenue and a $3.5 million increase in service revenue [141] - Strong Studios generated $0.9 million in revenue related to production services in the fourth quarter of 2022 [143] Profitability - Consolidated gross profit increased by 33.0% to $10.9 million in 2022, but gross profit percentage decreased to 26.5% from 30.4% in 2021 [145] - Strong Entertainment segment gross profit increased to $9.5 million, representing 23.9% of revenues in 2022, compared to $7.3 million or 28.1% in 2021 [147] - Total gross profit rose to $10.9 million in 2022, a 33.0% increase from $8.2 million in 2021 [147] - Operating income for the Strong Entertainment segment increased by 24.9% to $2.8 million in 2022, compared to $2.2 million in 2021 [152] Operational Performance - Consolidated loss from operations improved to $2.4 million in 2022, down from $3.1 million in 2021, reflecting a 24.8% reduction [151] - Net cash used in operating activities from continuing operations was $3.6 million in 2022, primarily due to increases in working capital [164] - Total cash and cash equivalents decreased to $3.8 million as of December 31, 2022, down from $8.9 million in 2021 [160] Investment and Capital Allocation - The company continues to evaluate capital allocation opportunities for investments or acquisitions in public or private companies [130] - The company recorded a gain of approximately $14.8 million from the divestiture of the Convergent business segment in February 2021, with a total enterprise value of approximately $23.2 million [131] - Net cash used in investing activities was $0.6 million in 2022, compared to $13.9 million in 2021 [165] Tax and Losses - Income tax expense decreased to approximately $0.5 million in 2022 from $3.2 million in 2021 [157] - The company recorded a net loss from continuing operations of $7.2 million, or $0.37 per share, in 2022, compared to a net income of $3.4 million, or $0.19 per share, in 2021 [158] - Total other loss was $4.7 million in 2022, primarily due to a $4.5 million loss on equity holdings [155] Customer Concentration - The top ten customers accounted for 49% of consolidated net revenues in 2022, with trade accounts receivable from these customers representing 68% of net consolidated receivables [174] Strategic Initiatives - The company plans to separate the Strong Entertainment operating business and pursue an initial public offering to support growth plans [128] - The company started producing original productions and acquiring rights to films and television programming in March 2022, indicating a strategic expansion into content creation [187] Risk Management - The company performs ongoing credit evaluations to minimize credit concentration risk, indicating a proactive approach to managing financial risk [176] - The primary exposure to foreign currency fluctuations is related to operations in Canada, with the company entering into foreign exchange contracts to manage this risk [177] Economic Factors - The impact of COVID-19 has led to significant disruptions, but there is now pent-up demand for out-of-home entertainment, which is expected to drive favorable trends in the cinema exhibition and theme park industries [135] - Inflation has begun to increase since the second half of 2021, but the company has historically managed to offset inflationary effects through price increases or cost efficiencies [179] Amortization and Impairment - The amortization of film and television programming costs is based on the ratio of current period revenues to estimated ultimate revenues, reflecting management's ongoing revenue estimates [188] - The company has not incurred any impairment write-downs on film costs, suggesting that current revenue estimates remain stable [191] EBITDA - Adjusted EBITDA for 2022 was $(2,979,000), while in 2021 it was $(3,957,000), showing an improvement year-over-year [173]

Business Divestiture and Strategic Initiatives - Ballantyne Strong divested its Convergent business segment for a total enterprise value of approximately $23.2 million, recording a gain of about $14.8 million in 2021[158]. - The company launched Strong Studios to diversify revenue streams and expand into content creation and production of feature films and series[155]. - The company has begun producing original content and acquiring rights to films and television programming since March 2022, indicating a strategic shift towards content creation[233]. Financial Performance - Net revenues for the third quarter of 2022 increased 68.0% to $10.3 million from $6.1 million in the same quarter of 2021[169]. - Revenue from Strong Entertainment increased 70.1% to $9.9 million in Q3 2022 from $5.8 million in Q3 2021, driven by a $3.6 million increase in product revenue and a $0.5 million increase in service revenue[171]. - Consolidated gross profit for Q3 2022 was $2.7 million, an increase of $0.3 million from $2.4 million in Q3 2021, with a gross profit percentage of 26.7% compared to 40.0% in the prior year[174]. - The loss from operations in Q3 2022 was $0.3 million, compared to a loss of $0.1 million in Q3 2021, reflecting increased selling and administrative expenses[181]. - Total other expense in Q3 2022 was $0.9 million, primarily due to a $1.3 million unrealized loss on equity holdings[184]. - Income tax expense decreased to $0.2 million in Q3 2022 from $2.7 million in Q3 2021, mainly due to current and deferred income tax on foreign earnings[185]. - The net loss from continuing operations for Q3 2022 was $2.2 million, or $0.11 per share, compared to a net income of $7.1 million, or $0.38 per share, in Q3 2021[187]. - For the nine months ended September 30, 2022, net revenues increased 73.4% to $29.4 million from $17.0 million in the same period of 2021[189]. - Revenue from Strong Entertainment for the first nine months of 2022 increased 76.5% to $28.4 million from $16.1 million in the same period of 2021[191]. - Consolidated gross profit increased to $7.7 million for the nine months ended September 30, 2022, from $6.1 million for the same period in 2021, representing a 26.3% increase[193]. - The company recorded a net loss from continuing operations of $8.6 million, or $0.45 per share, in the first nine months of 2022, compared to a net income of $3.8 million, or $0.21 per share, in the same period of 2021[207]. - Total cash and cash equivalents decreased to $4.3 million as of September 30, 2022, from $8.9 million as of December 31, 2021[209]. - Net cash used in operating activities from continuing operations was $2.8 million during the nine months ended September 30, 2022, compared to $0.3 million in the same period of 2021[214]. - The Strong Entertainment segment generated income from operations of $1.5 million in the first nine months of 2022, down from $2.2 million in the same period of 2021[200]. - Total other expense was $3.9 million during the first nine months of 2022, primarily due to a $3.8 million unrealized loss on equity holdings[202]. - Consolidated net loss for the quarter ended September 30, 2022, was $2,199, compared to a net income of $7,086 for the same period in 2021[224]. - Adjusted EBITDA for the quarter was $197, a significant decrease from $641 in the same quarter of 2021[224]. - EBITDA for the quarter was $(1,527), compared to $10,134 in the same quarter of 2021, indicating a decline in operating performance[224]. - Interest expense for the quarter was $91, up from $7 in the same quarter of 2021, reflecting increased borrowing costs[224]. - Income tax expense for the quarter was $245, compared to $2,696 in the same quarter of 2021, showing a reduction in tax liabilities[224]. - Depreciation and amortization expenses for the quarter totaled $336, compared to $345 in the same quarter of 2021, indicating stable asset depreciation[224]. Market and Operational Challenges - The COVID-19 pandemic has significantly impacted the company's customers in the entertainment and advertising industries, leading to a decline in operations and revenues[163]. - The company expects continued adverse impacts on revenues due to the COVID-19 pandemic and potential global recession[164]. - The ongoing geopolitical environment, including the military conflict in Ukraine, poses risks to the company's business and financial condition[152]. - The company expects to experience different seasonality patterns as it expands into new markets, which may affect future revenue and earnings[229]. Capital Allocation and Future Outlook - Ballantyne Strong continues to evaluate capital allocation opportunities, including investments in public or private companies and potential acquisitions[157]. - The company expects the upgrades from xenon to laser projection to accelerate in 2023 and continue for several years, driven by increased demand in the cinema industry[172]. - The company expects upgrades from xenon to laser projection to accelerate in 2023 and continue for several years, driven by the recovery in the cinema industry[192]. - Management regularly reviews and adjusts its estimates of Ultimate Revenue for film and television programming, which may impact amortization rates and potential impairments[238].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13906 BALLANTYNE STRONG, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 47-0587703 (State or Other Jurisdictio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13906 BALLANTYNE STRONG, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 47-0587703 (State or Other Jurisdicti ...