Financial Data and Key Metrics Changes - Consolidated operating income for Q4 2023 was $4.6 million, up from $3.1 million in Q4 2022, while adjusted EBITDA increased to $4.9 million from $3.4 million year-over-year [13][19] - Full year 2023 operating income reached $14.3 million, indicating strong performance across the business [19] - Net income for Q4 2023 was $4.9 million or $0.13 per diluted share, down from $10 million or $0.27 per diluted share in Q4 2022, primarily due to reduced income tax valuation allowance [22] Business Line Data and Key Metrics Changes - Specialty Lending segment reported a gross investment balance in notes receivable of $38.4 million, an increase of $16.3 million compared to the prior year [9] - Financial Assets division's operating income increased by 90% to $8.9 million, driven by an expanded client base and higher volumes of charged-off loans [20][42] - Core Auction and Resale segments saw growth in transaction volumes, with operating income of $7.8 million, down from $9.2 million in 2022 due to the absence of earnings from real estate joint ventures [10] Market Data and Key Metrics Changes - The addressable market has significantly increased due to the highest-ever consumer debt levels, which is expected to drive growth in the coming years [11][30] - The auction business is anticipated to maintain strong momentum into 2024, supported by high consumer debt and increased volumes of charged-off credit cards [42] Company Strategy and Development Direction - The company aims to leverage the growing addressable market and is focused on managing risk in its loan portfolio while redeploying principal remittances for higher quality collateral [47][59] - There is a strategic emphasis on synergistic growth through acquisitions, such as American Lab trading, which enhances the auction business [61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a solid and profitable year in 2024, despite the challenges of comparing against record performance in previous years [26][28] - The company is optimistic about the stability of profits over the next two to three years, given the current supply dynamics in the market [30] Other Important Information - The balance sheet remains strong, with stockholders' equity increasing to $61.1 million as of December 31, 2023, up from $48.3 million a year earlier [45] Q&A Session All Questions and Answers Question: How does the company view growth in 2024 given the macro environment? - Management indicated that while it is challenging to predict growth after a record year, the addressable market is larger than last year, suggesting potential for increased profitability [26][49] Question: What is the status of the loan book and reserves? - Management confirmed that no significant changes were made to the credit loss reserve in Q4, and they feel comfortable with the current position based on thorough analysis and borrower performance [50] Question: How sustainable is the growth at NLEX? - Management noted that the growth is supported by both macro dynamics and an increasing number of customers, indicating a favorable environment for continued growth [51]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 001-39471 HERITAGE GLOBAL INC. (Exact Name of Registrant as Specified in Its Charter) Florida 59-2291344 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ 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: 001-39471 HERITAGE GLOBAL INC. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporation or Org ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 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: 001-39471 HERITAGE GLOBAL INC. 12625 High Bluff Drive, Suite 305, San Diego, CA 92130 (Address of Principal Executive Offices) (858) 847-0659 ( ...

Heritage Global Inc. (NASDAQ:HGBL) Q1 2023 Earnings Conference Call May 11, 2023 5:00 PM ET Company Participants John Nesbett - IR Ross Dove - CEO Brian Cobb - CFO Conference Call Participants Mark Argento - Lake Street Operator Welcome to the Heritage Global Inc. First Quarter 2023 Earnings Call. [Operator Instructions] I will now turn the call over to your host, John Nesbett, IMS Investor Relations. You may begin. John Nesbett Thank you, and good afternoon, everyone. Before we begin, I'd like to remind ev ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION 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: 001-39471 HERITAGE GLOBAL INC. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporation or Organization) WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT O ...

Financial Performance - Total revenues increased to $46.9 million in 2022, up from $25.8 million in 2021, representing an increase of approximately 82%[115] - Gross profit rose to $26.0 million in 2022, compared to $18.4 million in 2021, an increase of approximately $7.6 million or 42%[120] - Operating income for 2022 was $11.1 million, compared to $3.0 million in 2021, marking a significant increase[115] - Net income rose significantly from $3,053 thousand in 2021 to $15,493 thousand in 2022, marking an increase of 408%[127] - EBITDA increased from $3,474 thousand in 2021 to $11,656 thousand in 2022, representing a growth of 236%[127] - Adjusted EBITDA also saw a substantial rise from $4,082 thousand in 2021 to $12,196 thousand in 2022, an increase of 199%[127] Expenses - Selling, general and administrative expenses increased to $21.3 million in 2022, up from $14.8 million in 2021, reflecting a 44% increase[121] - Total selling, general and administrative expense increased by 44% from $14,811 thousand in 2021 to $21,326 thousand in 2022[123] - The total depreciation and amortization expense for both 2022 and 2021 was $0.5 million, primarily related to intangible assets[123] Cash Flow and Assets - Cash provided by operating activities was $6.5 million in 2022, a turnaround from cash used of $2.6 million in 2021, indicating a change of approximately $9.1 million[105] - Current assets increased to $23.9 million at December 31, 2022, compared to $23.3 million at December 31, 2021, primarily due to a $2.3 million increase in notes receivable[95] - Cash and cash equivalents decreased to $12.7 million at December 31, 2022, from $13.6 million at December 31, 2021[104] Liabilities and Equity - Current liabilities rose to $16.2 million at December 31, 2022, up from $14.2 million at December 31, 2021, an increase of $2.0 million[96] - The company had stockholders' equity of $48.3 million at December 31, 2022, compared to $32.6 million at December 31, 2021[101] Future Expectations - The company expects future net cash flows from operating activities to continue as the primary source of cash for ongoing operations[100] - The company expects an adjustment to retained earnings between $0.3 million and $0.4 million due to the adoption of ASU 2016-13 effective January 1, 2023[128] Acquisitions and Credits - The acquisition of American Laboratory Trading in August 2021 was for approximately $5.6 million, with fair value assessments conducted for purchase price allocation[146] - The company recorded a $0.6 million receivable related to the Employee Retention Credit as of December 31, 2022[144] Other Financial Information - The deferred revenue balance as of December 31, 2022, was $0.4 million, primarily related to customer deposits on asset sales[132] - Goodwill is tested for impairment annually on October 1, with a qualitative approach followed by a quantitative analysis if necessary[148] - The company recorded a net deferred tax asset balance of approximately $9.4 million in Q4 2022, indicating a belief that a significant portion of net operating loss carryforwards will be utilized[150] - Stock-based compensation is primarily in the form of options, with fair value calculated using the Black-Scholes model and expensed over the vesting period[151] - As of December 31, 2022, the company had not recorded an allowance for credit losses related to notes receivable outstanding[141]

Heritage Global Inc. (NASDAQ:HGBL) Q4 2022 Earnings Conference Call March 9, 2023 5:00 PM ET Company Participants John Nesbett - IR Ross Dove - CEO Brian Cobb - CFO Conference Call Participants Mark Argento - Lake Street Michael Diana - Maxim Group Operator Thank you for standing by. This is the conference operator. Welcome to the Heritage Global Inc. Fourth Quarter and Year-end 2022 Conference Call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. [Operator Ins ...

Heritage Global Inc. (NASDAQ:HGBL) Q3 2022 Earnings Conference Call November 10, 2022 5:00 PM ET Company Participants John Nesbett – Investor Relations Ross Dove – Chief Executive Officer Brian Cobb – Chief Financial Officer Conference Call Participants Mark Argento – Lake Street Michael Diana – Maxim Group Operator Good afternoon, ladies and gentlemen, and welcome to the Heritage Global Third Quarter 2022 Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, th ...

Financial Performance - Total revenues for the nine months ended September 30, 2022, were $33.1 million, up 81.5% from $18.3 million in the same period in 2021[143]. - Revenues for the three months ended September 30, 2022, were $12.7 million, a 111.7% increase from $6.0 million in the same period in 2021[140]. - Gross profit for the nine months ended September 30, 2022, was $17.3 million, an increase of approximately $4.2 million or 32% compared to $13.2 million in the same period in 2021[143]. - Gross profit for the three months ended September 30, 2022, was $7.6 million, reflecting an increase of approximately $3.4 million or 80% compared to $4.2 million in the same period in 2021[140]. - Net income for the nine months ended September 30, 2022, was $5.5 million, a 164% increase from $2.1 million in the same period in 2021[136]. - Net income for the three months ended September 30, 2022, was $2.3 million, compared to $474,000 in the same period in 2021[149]. - Adjusted EBITDA for the nine months ended September 30, 2022, was $8.757 million, significantly higher than $2.459 million in the same period in 2021[149]. Assets and Capital - As of September 30, 2022, the company reported working capital of $13.0 million, an increase from $9.1 million as of December 31, 2021[115]. - As of September 30, 2022, current assets increased to $26.5 million from $23.3 million as of December 31, 2021, primarily due to cash generated from operating activities[117]. - Cash and cash equivalents rose to $17.5 million as of September 30, 2022, compared to $13.6 million as of December 31, 2021, marking an increase of approximately $3.9 million[124]. - Stockholders' equity increased to $38.3 million from $32.6 million as of December 31, 2021[122]. Operational Highlights - The company has issued a total of $63.2 million in loans to investors through Heritage Global Capital LLC since its inception in 2019, with the company's portion being $21.5 million[104]. - The acquisition of American Laboratory Trading in 2021 has strengthened the company's service offerings in the biotech and pharma sectors[106]. - The company anticipates increased activity in its Financial Assets Division due to rising delinquency and charge-off rates, as well as expanding volumes of nonperforming consumer loans[93]. - The company plans to expand NLEX's services into the FinTech lenders, peer-to-peer lending, and Buy Now Pay Later sectors, indicating potential for significant growth[103]. - The company has multiple revenue streams across its brokerage, auction services, advisory services, and secured lending services, which are expected to drive growth[97]. - The company aims to leverage its competitive advantages to grow within each service line and across platforms, maintaining high incremental margins and improving earnings predictability[94]. Expenses - Selling, general and administrative expenses for the nine months ended September 30, 2022, were $14.9 million, a 34% increase from $11.1 million in the same period in 2021[144]. - Selling, general and administrative expenses for the three months ended September 30, 2022, were $5.7 million, a 63% increase from $3.5 million in the same period in 2021[141]. - The increase in selling, general and administrative expenses was primarily due to increased compensation and operational expenses related to the acquisition of ALT[144]. - Travel and entertainment expenses increased due to the lift in travel restrictions related to the COVID-19 pandemic[142]. Cash Flow - Cash provided by operating activities was $2.6 million during the nine months ended September 30, 2022, a significant improvement from cash used in operating activities of $4.1 million during the same period in 2021, reflecting a change of approximately $6.7 million[125]. - Cash used in financing activities was approximately $2.6 million during the nine months ended September 30, 2022, compared to cash provided by financing activities of $1.2 million for the same period in 2021[131]. - The company expects to fund operations and debt service obligations for at least 12 months from the date of filing through cash flows from ongoing asset liquidation operations and proceeds from the 2020 Public Offering[119]. Management and Expertise - The company has a strong management team with deep domain expertise, including its President and CEO, who has over thirty years of experience in the auction business[100].