ERITAGE An Asset Services company specializing in financial and industrial asset transactions Investor Presentation September 2021 FORWARD LOOKING STATEMENTS This communication includes forward-looking statements based on our current expectations and projections about future events. All statements contained in this communication other than statements of historical fact, including any statements regarding our future operating results and financial position, our business strategy and plans, potential acquisit ...

Heritage Global Inc. (NASDAQ:HGBL) Q2 2021 Earnings Conference Call August 12, 2021 5:00 PM ET Company Participants John Nesbett – IMS Investor Relations Ross Dove – Chief Executive Officer Brian Cobb – Vice President-Finance and Controller Conference Call Participants Mark Argento – Lake Street Michael Diana – Maxim Group Operator Good day ladies and gentlemen and welcome to the Heritage Global Inc. Second Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder this conference is being ...

Financial Data and Key Metrics Changes - The company achieved operating income of $1 million for Q1 2021, a significant improvement from $100,000 in Q1 2020 [19] - Net income increased to $1 million or $0.03 diluted earnings per share in Q1 2021, compared to $38,000 or breakeven diluted earnings per share in Q1 2020 [20] - Adjusted EBITDA was $1.5 million in Q1 2021, up from $300,000 in Q1 2020, indicating improved earnings power [22] Business Line Data and Key Metrics Changes - The industrial assets division saw strong performance due to increased demand for liquidation of surplus industrial equipment as companies adapt to a more asset-light model [7][8] - The financial assets division showed improvement but faced challenges due to pandemic-related waivers and loan forgiveness, with expectations for increased non-performing assets later in the year [12][15] Market Data and Key Metrics Changes - The company noted a growing emphasis on sustainability in the industrial assets sector, with clients seeking to repurpose surplus machinery rather than disposing of it [9][11] - There is a strong demand for non-performing assets, with larger players paying higher prices due to limited availability in the market [12][17] Company Strategy and Development Direction - The company aims to capitalize on the growing demand for industrial and financial asset services as the economy reopens [16][18] - There is a focus on supporting corporate sustainability practices, which is expected to drive growth in the industrial assets business [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2021, anticipating increased spending and a rise in the release of non-performing assets as the economy stabilizes [31][55] - The company is well-positioned to benefit from rising demand for capital by debt buyers as conventional lenders offload underperforming assets [17] Other Important Information - The company's balance sheet remains strong with net cash of $15.9 million and stockholder's equity of $30.9 million as of March 31, 2021 [23] Q&A Session Summary Question: Can you talk about the environment on the industrial side? - Management noted significant activity from large global clients in the pharma and oil and gas sectors, with a focus on lifecycle management and releasing surplus assets [26] Question: What gives you confidence that financial assets will pick up later this year? - Management highlighted strong demand from buyers and record prices due to limited supply, indicating an inevitable increase in supply as the economy normalizes [29][32] Question: Are there going to be any more bigger non-healthcare related auctions going forward? - Management indicated ongoing sales in the pharma sector and anticipated increases in M&A activity, which could lead to more surplus assets for auction [50]

Heritage Global, Inc. (NASDAQ:HGBL) Q4 2020 Earnings Conference Call March 8, 2021 5:00 PM ET Company Participants John Nesbett - IMS Investor Relations Ross Dove - Chief Executive Officer Scott West - Chief Financial Officer Conference Call Participants Mike Shlisky - Colliers Securities Mark Argento - Lake Street Capital Markets Michael Diana - Maxim Group Operator Thank you for standing by. This is the conference operator. Welcome to the Heritage Global Inc. Fourth Quarter 2020 Earnings Call. As a remind ...

Part I [Business](index=4&type=section&id=Item%201.%20Business.) Heritage Global Inc. is an asset services company specializing in financial and industrial asset transactions, growing through strategic acquisitions and anticipating increased distressed asset supply - The company operates as an asset services firm, advising and acting as principal in acquiring and monetizing assets across 28 global sectors[13](index=13&type=chunk) - The business is structured into two main divisions: Industrial Assets and Financial Assets[36](index=36&type=chunk)[39](index=39&type=chunk)[123](index=123&type=chunk) - Growth strategy includes acquisitions like HGP and NLEX, and the formation of Heritage Global Capital (HGC) for specialty financing[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) - Despite a minor negative impact in 2020, the COVID-19 pandemic is expected to increase distressed asset supply and demand for online services[22](index=22&type=chunk)[23](index=23&type=chunk) - As of December 31, 2020, the company had **46 full-time employees**[26](index=26&type=chunk) [Risk Factors](index=8&type=section&id=Item%201A.%20Risk%20Factors.) The company faces significant competition, operational dependencies, regulatory compliance, and financial vulnerabilities including goodwill impairment and stock price volatility - The company faces significant competition, assumes inventory risk in principal transactions, and experiences fluctuating operating results due to unpredictable asset liquidation deals[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) - Operations are dependent on key executives, vulnerable to cybersecurity breaches, and subject to costly government regulations including export controls[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - Capitalization and market risks include potential need for additional financing, anti-takeover provisions, stock price volatility, and Nasdaq delisting risk[61](index=61&type=chunk)[62](index=62&type=chunk)[69](index=69&type=chunk)[77](index=77&type=chunk) - As of December 31, 2020, goodwill represented approximately **14% of total assets**, with impairment potentially reducing net income[71](index=71&type=chunk) - As of March 1, 2021, executive officers, directors, and affiliates beneficially own **28.5% of common stock**, providing significant influence over stockholder matters[74](index=74&type=chunk) [Unresolved Staff Comments](index=15&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments.) The company reports no unresolved staff comments from the SEC - None [Properties](index=15&type=section&id=Item%202.%20Properties.) The company leases principal office and warehouse spaces in San Diego, Burlingame (to be replaced by Hayward), and Edwardsville, IL, with one leased from a related party - The company leases principal office spaces in San Diego, Burlingame (to be replaced by Hayward, CA in May 2021), and Edwardsville, IL[84](index=84&type=chunk) [Legal Proceedings](index=15&type=section&id=Item%203.%20Legal%20Proceedings.) The company is involved in routine legal matters, none of which are expected to be materially adverse to its business or financial results - The company is involved in routine legal matters, none of which are expected to be materially adverse[85](index=85&type=chunk) [Mine Safety Disclosures](index=15&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company's operations - Not Applicable Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=16&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities.) The company's common stock trades on Nasdaq under "HGBL" with approximately 346 holders of record as of March 2021, and no dividends are anticipated - The company's common stock is listed on the Nasdaq Stock Market under the symbol **"HGBL"**[89](index=89&type=chunk) - As of March 1, 2021, there were approximately **346 holders of common stock** of record[90](index=90&type=chunk) - No dividends have been paid on common stock, and none are anticipated in the foreseeable future[91](index=91&type=chunk) [Selected Financial Data](index=17&type=section&id=Item%206.%20Selected%20Financial%20Data.) As a Smaller Reporting Company, Heritage Global Inc. is not required to provide this information - The company is not required to provide this information as it qualifies as a Smaller Reporting Company[96](index=96&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) The discussion covers 2020 financial performance, highlighting improved liquidity from a public offering, stable revenues, doubled operating income, and increased net income driven by lower SG&A and a tax benefit [Equity Partners Separation](index=17&type=section&id=Equity%20Partners%20Separation) The company completed its separation from Equity Partners on December 31, 2019, resulting in a **$0.6 million** non-cash goodwill impairment charge - The separation from Kenneth Mann and Equity Partners was effective December 31, 2019[99](index=99&type=chunk) - A non-cash goodwill impairment charge of **$0.6 million** was recorded on December 31, 2019, due to the separation[103](index=103&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity significantly improved in 2020, with working capital increasing by **$15.4 million** and cash by **$20.7 million**, primarily due to an **$8.7 million** public stock offering and strong operating cash flow - Working capital increased by **$15.4 million**, from a deficit of **$2.4 million** in 2019 to a surplus of **$13.0 million** in 2020[105](index=105&type=chunk) - A public offering of common stock in October 2020 generated net proceeds of approximately **$8.7 million**[106](index=106&type=chunk) - Cash Position Change (2019 vs 2020) | Metric | 2020 ($) | 2019 ($) | | :--- | :--- | :--- | | Cash and cash equivalents | 23.4 million | 2.7 million | | Cash provided by operating activities | 9.1 million | 0.8 million | - As of December 31, 2020, the company had a **zero outstanding balance** on its **$5.0 million** revolving line of credit[110](index=110&type=chunk) [Results of Operations](index=19&type=section&id=Results%20of%20Operations) Total revenues remained flat at **$26.2 million** in 2020, while operating income more than doubled to **$6.1 million** and net income increased to **$9.7 million**, driven by lower SG&A and a tax benefit - Consolidated Results of Operations (in thousands) | Metric | 2020 (in thousands $) | 2019 (in thousands $) | | :--- | :--- | :--- | | Total Revenues | 26,183 | 26,168 | | Operating Income | 6,059 | 3,050 | | Net Income | 9,658 | 3,899 | - Net Operating Income by Segment (in thousands) | Segment | 2020 (in thousands $) | 2019 (in thousands $) | | :--- | :--- | :--- | | Industrial Assets Division | 5,764 | 2,834 | | Financial Assets Division | 2,637 | 3,337 | | Corporate and Other | (2,342) | (3,121) | - Selling, general and administrative (SG&A) expenses decreased by **$1.4 million (9%)** in 2020, primarily due to the elimination of compensation costs from the Equity Partners separation[127](index=127&type=chunk) [Key Performance Indicators](index=22&type=section&id=Key%20Performance%20Indicators) The company uses non-GAAP measures EBITDA and Adjusted EBITDA, with Adjusted EBITDA increasing **61%** to **$6.8 million** in 2020, reflecting improved underlying profitability - EBITDA and Adjusted EBITDA Reconciliation (in thousands) | Metric | 2020 (in thousands $) | 2019 (in thousands $) | | :--- | :--- | :--- | | Net Income | 9,658 | 3,899 | | EBITDA | 6,421 | 3,355 | | Adjusted EBITDA | 6,774 | 4,211 | [Critical Accounting Policies](index=23&type=section&id=Critical%20Accounting%20Policies) Critical accounting policies involve significant estimates for revenue recognition, goodwill and intangible asset valuation, and deferred tax assets, notably the 2020 reduction of the deferred tax asset valuation allowance - Significant estimates are required for valuing accounts receivable, inventory, goodwill, intangible assets, and deferred tax assets[139](index=139&type=chunk) - Revenue is recognized under ASC 606, typically when performance obligations are satisfied, with fee-based transactions reported on a net basis as an agent[141](index=141&type=chunk)[143](index=143&type=chunk) - Goodwill is tested for impairment annually on October 1, with a **$0.6 million** impairment charge recorded in 2019 related to the Equity Partners separation[156](index=156&type=chunk)[157](index=157&type=chunk) - The company reduced its valuation allowance against deferred tax assets in 2020, resulting in a net deferred tax asset balance of **$4.4 million**, based on expected future profitability[159](index=159&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) As a Smaller Reporting Company, Heritage Global Inc. is not required to provide this information - The company is not required to provide this information as it qualifies as a Smaller Reporting Company[162](index=162&type=chunk) [Financial Statements and Supplementary Data](index=26&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data.) The company's consolidated financial statements are included with the report, beginning on page F-1 - The company's consolidated financial statements required by this item are included starting on page F-1 of the report[163](index=163&type=chunk) [Changes In and Disagreements With Accountants on Accounting and Financial Disclosure](index=26&type=section&id=Item%209.%20Changes%20In%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure.) The company reported no disagreements with its auditors on accounting principles, financial disclosure, or auditing scope during 2020 and 2019 - During 2020 and 2019, the company had no disagreements with its auditors and no reportable events[164](index=164&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%209A.%20Controls%20and%20Procedures.) Management, including the CEO and CFO, concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2020 - Management, including Certifying Officers, concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[166](index=166&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2020[170](index=170&type=chunk) [Other Information](index=27&type=section&id=Item%209B.%20Other%20Information.) The company reported no other information for this item - None Part III [Directors, Executive Officers and Corporate Governance](index=28&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance.) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2021 Proxy Statement, with the Code of Conduct available online - Information required by this item is incorporated by reference from the definitive proxy materials for the 2021 Annual Meeting of Stockholders[175](index=175&type=chunk) - The company has adopted a Code of Conduct, which is available on its website[178](index=178&type=chunk) [Executive Compensation](index=28&type=section&id=Item%2011.%20Executive%20Compensation.) Information regarding executive compensation is incorporated by reference from the 2021 Annual Meeting of Stockholders proxy materials - Information regarding executive compensation is incorporated by reference from the 2021 Annual Meeting of Stockholders proxy materials[179](index=179&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=28&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters.) Information regarding security ownership of certain beneficial owners and management is incorporated by reference from the 2021 Annual Meeting of Stockholders proxy materials - Information regarding security ownership is incorporated by reference from the 2021 Annual Meeting of Stockholders proxy materials[180](index=180&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=29&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence.) Information regarding certain relationships, related party transactions, and director independence is incorporated by reference from the 2021 Annual Meeting of Stockholders proxy materials - Information regarding related party transactions and director independence is incorporated by reference from the 2021 Annual Meeting of Stockholders proxy materials[182](index=182&type=chunk) [Principal Accountant Fees and Services](index=29&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services.) Information regarding principal accountant fees and services is incorporated by reference from the 2021 Annual Meeting of Stockholders proxy materials - Information regarding principal accountant fees and services is incorporated by reference from the 2021 Annual Meeting of Stockholders proxy materials[183](index=183&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=30&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules.) This section lists financial statements and exhibits filed with the Form 10-K, with financial statement schedules omitted as not required or applicable - This item lists the financial statements and exhibits filed with the report, with financial statement schedules omitted as not required or applicable[186](index=186&type=chunk) [Form 10-K Summary](index=33&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company did not provide a summary for this item - None Financial Statements [Consolidated Financial Statements](index=38&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements for 2020 and 2019 show significant increases in cash, total assets, and stockholders' equity, driven by a public offering and strong net income - Consolidated Balance Sheet Highlights (in thousands) | Metric | Dec 31, 2020 (in thousands $) | Dec 31, 2019 (in thousands $) | | :--- | :--- | :--- | | Cash and cash equivalents | 23,385 | 2,728 | | Total Assets | 44,555 | 21,917 | | Total Liabilities | 14,612 | 10,070 | | Total Stockholders' Equity | 29,943 | 11,847 | - Consolidated Income Statement Highlights (in thousands, except per share data) | Metric | 2020 (in thousands $) | 2019 (in thousands $) | | :--- | :--- | :--- | | Total Revenues | 26,183 | 26,168 | | Operating Income | 6,059 | 3,050 | | Net Income | 9,658 | 3,899 | | Net income per share – diluted ($) | 0.30 | 0.13 | - Consolidated Cash Flow Highlights (in thousands) | Metric | 2020 (in thousands $) | 2019 (in thousands $) | | :--- | :--- | :--- | | Net cash provided by operating activities | 9,148 | 794 | | Net cash provided by (used in) investing activities | 4,508 | (1,156) | | Net cash provided by (used in) financing activities | 7,001 | (1,178) | [Notes to Consolidated Financial Statements](index=42&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed information on the October 2020 public offering, accounting policies, notes receivable, equity method investments, debt facilities, income taxes, and stock-based compensation plans - On October 6, 2020, the company completed a public offering of **5,462,500 shares**, receiving approximately **$8.7 million** in net proceeds[228](index=228&type=chunk) - Goodwill balance was **$5.585 million** at both December 31, 2020 and 2019, with no impairment charges determined in Q4 2020[290](index=290&type=chunk)[291](index=291&type=chunk) - The company has a **$5.0 million** revolving line of credit with a **zero balance** at year-end 2020, and its maturity was extended to April 5, 2021[297](index=297&type=chunk)[346](index=346&type=chunk) - At December 31, 2020, the company had tax net operating loss carryforwards of approximately **$77.6 million**, and management reduced the valuation allowance expecting realization of deferred tax assets[303](index=303&type=chunk)[304](index=304&type=chunk)

Heritage Global, Inc. (NASDAQ:HGBL) Q3 2020 Earnings Conference Call November 9, 2020 5:00 PM ET Company Participants Michael Kim - Investor Relations Ross Dove - Chief Executive Officer Scott West - Chief Financial Officer Conference Call Participants Mark Argento - Lake Street Capital Markets Michael Diana - Maxim Group Mike Shlisky - Colliers Securities John Fichthorn - Dialectic Capital Operator Good afternoon, ladies and gentlemen. And welcome to the Heritage Global Inc Third Quarter 2020 Earnings Conf ...

Impact of COVID-19 - Heritage Global Inc. reported a minor negative impact on performance due to COVID-19, with delays in asset sales[90] - The company expects increased demand for online auctions and valuation services as a result of ongoing social distancing measures[91] Business Performance and Financials - Total revenues for the nine months ended September 30, 2020, were $17.9 million, a decrease of $2.67 million or 13% compared to $20.6 million in 2019[133] - Revenues for the nine months ended September 30, 2020, were $17.9 million, a decrease of approximately 13.1% from $20.6 million in the same period in 2019[139] - Gross profit for the nine months ended September 30, 2020, was $13.2 million, down approximately 6% from $14.0 million in 2019[139] - Net income for the nine months ended September 30, 2020, was $3.34 million, a slight increase of $19, or 1%, from $3.32 million in 2019[133] - Net income for the nine months ended September 30, 2020, was $3.341 million, slightly up from $3.322 million in 2019[145] - Adjusted EBITDA for the nine months ended September 30, 2020, was $3.260 million, down from $3.932 million in 2019, reflecting a decrease of approximately 17%[145] Revenue Streams and Business Model - Heritage Global Inc. has a diversified business model with multiple revenue streams across brokerage, advisory, and secured lending services[103] - The Industrial Assets division charges fees ranging from 15% to 50% depending on the role in the transaction, highlighting revenue potential[111] - The company anticipates growth in auction services through higher-contribution principal deals and increased mergers and acquisitions in manufacturing[112] - The company plans to expand into the FinTech, student loans, and peer-to-peer lending sectors, indicating strategic growth initiatives[108] Cash Flow and Working Capital - As of September 30, 2020, the company had working capital of $0.9 million, an improvement from a working capital deficit of $2.3 million at December 31, 2019[119] - Current assets increased to $11.0 million at September 30, 2020, compared to $6.8 million at December 31, 2019, primarily due to cash flow from operations[119] - Cash and cash equivalents rose to $5.8 million at September 30, 2020, up from $2.7 million at December 31, 2019, an increase of approximately $3.1 million[125] - Cash provided by operating activities was $2.8 million during the nine months ended September 30, 2020, compared to $1.0 million in the same period in 2019, reflecting a $1.8 million increase[126] - The company expects to finance future operations through cash flows from asset liquidation, proceeds from the recent stock offering, and draws on the line of credit as needed[129] Expenses and Cost Management - Selling, general and administrative expenses decreased to $10.5 million in 2020 from $11.6 million in 2019, a reduction of about 9%[140] - The decrease in total selling, general and administrative expenses was largely due to the elimination of Equity Partners compensation costs after their separation from the company[140] - Travel and entertainment expenses saw a substantial decline of 60%, dropping to $234,000 in 2020 from $588,000 in 2019[141] - The depreciation and amortization expense increased to $0.3 million in 2020 from $0.2 million in 2019[142] Strategic Initiatives and Compliance - Management believes that tightening underwriting standards will create more funding opportunities for Heritage Global Capital LLC[93] - The company aims to leverage its Capital Asset Redeployment Enterprise (CARE) software for growth in auction services[112] - Management emphasizes the importance of compliance with consumer protection laws, which may incur substantial costs[113] - The company completed an offering of 5,462,500 shares of common stock in October 2020, resulting in net proceeds of approximately $9.1 million[129] Key Performance Indicators - The company emphasizes EBITDA and Adjusted EBITDA as key performance indicators for assessing operational performance[144] - The company reported a significant increase in HGC compensation, rising 994% to $339,000 in 2020 from $31,000 in 2019[141]

IERITAGE Asset services company specializing in financial and capital asset transactions Investor Presentation August 2020 Forward-Looking Statements This communication includes forward-looking statements based on our current expectations and projections about future events. For these statements, Heritage Global Inc. (the "Company") claims the protection of the safe harbor for forwardlooking statements contained in the Private Securities Litigation Reform Act of 1995. The forward-looking statements containe ...

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, 2020 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: 0-17973 Heritage Global Inc. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of (Registrant's Telephone Num ...

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 March 31, 2020 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: 0-17973 Heritage Global Inc. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of FLORIDA 59-2291344 Incorpo ...