Financial Data and Key Metrics Changes - Commission income increased by $154,000 or 4% to $4,200,000 in Q1 2025 compared to $4,100,000 in Q1 2024, reflecting organic growth across insurance distribution channels [12] - Net loss decreased by $3,600,000 or 68% to $1,700,000 in Q1 2025 versus $5,300,000 in Q1 2024, indicating improved operational efficiency [14] - Adjusted EBITDA improved significantly by 300% from a loss of $74,000 in Q1 2024 to a gain of $145,000 in Q1 2025, marking a $220,000 increase [14] Business Line Data and Key Metrics Changes - The launch of Reliance Auto Leasing is a significant development, allowing agency partners to offer vehicle leasing, which is expected to generate additional income and deepen client relationships [8][9] - The acquisition of Spetner Associates is anticipated to enhance market footprint and create cross-selling opportunities, contributing to revenue growth and margin improvement [10] Market Data and Key Metrics Changes - The company is expanding its market share through organic revenue growth and strategic acquisitions, positioning itself for scalable long-term growth [7][10] Company Strategy and Development Direction - The company is focused on innovation, disciplined growth, and enhancing shareholder value through new service offerings and strategic acquisitions [11] - The integration of Spetner Associates is viewed as a significant step toward the company's InsurTech growth strategy, expected to broaden capabilities and revenue opportunities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory towards scalable long-term growth, supported by a disciplined financial approach and operational efficiencies [8][11] - The positive adjusted EBITDA is attributed to a combination of increased revenue and cost control measures, with expectations for continued improvement moving forward [19][20] Other Important Information - The company is committed to building a highly profitable business enterprise that delivers long-lasting value to employees, investors, and shareholders [15] Q&A Session Summary Question: Insights into the Septner acquisition benefits - The acquisition is expected to significantly increase EBITDA positivity and revenue, with potential for substantial cross-selling opportunities due to access to new insurance products [17][18] Question: Key drivers behind positive adjusted EBITDA - Positive adjusted EBITDA is driven by a multi-faceted approach including streamlining expenses, cross-selling, and maintaining cost consciousness [19]

Financial Data and Key Metrics Changes - Commission income increased by $154,000 or 4% to $4,200,000 in Q1 2025 compared to $4,100,000 in Q1 2024, reflecting organic growth across insurance distribution channels [12] - Net loss decreased by $3,600,000 or 68% to $1,700,000 in Q1 2025 versus $5,300,000 in Q1 2024, attributed to improved operational efficiency and reduced impairment charges [14] - Adjusted EBITDA improved significantly by 300% from a loss of $74,000 in Q1 2024 to a gain of $145,000 in Q1 2025, indicating a trend towards sustained profitability [14][15] Business Line Data and Key Metrics Changes - The launch of Reliance Auto Leasing is a significant development, allowing agency partners to offer vehicle leasing, which is expected to enhance client relationships and create a recurring revenue stream [8][9] - The acquisition of Spetner Associates is anticipated to expand market footprint and enhance agency network, contributing to revenue growth and margin improvement [9][10] Market Data and Key Metrics Changes - The company is focused on expanding its market share through innovative services and strategic acquisitions, positioning itself for scalable long-term growth [8][10] Company Strategy and Development Direction - The company emphasizes a disciplined financial approach and a streamlined operating model to enhance profitability and market presence [6][8] - Reliance Global Group is committed to innovation and disciplined growth, with a focus on expanding services for agency partners and increasing revenue opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory towards scalable long-term growth, supported by new service offerings and strategic acquisitions [10][11] - The positive feedback from agents regarding new services indicates strong market acceptance and potential for future growth [9] Other Important Information - The company is nearing completion of the Bettner Associates acquisition, which is expected to create immediate cross-selling opportunities and enhance overall capabilities [9][10] Q&A Session Summary Question: Insights on the Septner acquisition benefits - The acquisition is expected to significantly increase EBITDA positivity and revenue, with potential for substantial cross-selling opportunities due to access to new insurance products [18][19] Question: Key drivers behind positive adjusted EBITDA - Positive adjusted EBITDA is driven by a combination of revenue growth, expense streamlining, and a focus on cost efficiency, with expectations for continued improvement through technology [20][21]

Acquisition Strategy - As of March 31, 2025, the Company has acquired nine insurance agencies as part of its aggressive acquisition strategy[61] - The Company plans to acquire 80% of Spetner Associates for $16,050,000, which includes $6,500,000 in cash and the issuance of common stock and promissory notes[62] - The Company focuses on acquiring undervalued wholesale and retail insurance agencies in growing or underserved segments, including healthcare and Medicare[68] - The Company aims to expand its business through continued asset acquisitions and organic growth over the next 12 months[62] Financial Performance - Commission income for Q1 2025 was $4,236,220, a 4% increase from $4,082,438 in Q1 2024[77] - Total operating expenses decreased by 38% to $5,643,362 in Q1 2025 from $9,114,159 in Q1 2024[77] - Net loss improved to $(1,736,882) in Q1 2025, a 68% reduction from $(5,346,663) in Q1 2024[79] - AEBITDA for Q1 2025 was $145,407, compared to $(73,654) in Q1 2024, representing a significant turnaround[79] - Cash balance as of March 31, 2025, was approximately $1,812,000, with negative working capital of approximately $77,000[80] - Net cash provided by operating activities was $197,830 in Q1 2025, compared to net cash used of $(204,382) in Q1 2024[83] - Cash used in investing activities was approximately $14,944 in Q1 2025, down from $29,444 in Q1 2024[85] - Cash used in financing activities decreased to $169,073 in Q1 2025 from $392,100 in Q1 2024[86] - The company experienced a 15% increase in commission expenses, correlating with revenue growth[77] Operational Strategy - The 5MinuteInsure.com platform operates in 46 states and allows consumers to compare quotes from up to 30 insurance carriers, utilizing advanced AI and data mining techniques[62] - RELI Exchange has increased its agent roster by over 300% since its inception, providing a B2B InsurTech platform for agency partners[63] - The Company adopted a "OneFirm" strategy to enhance market presence and improve relationships with carriers, leading to better commission contracts[64] Market Challenges - The competitive landscape includes challenges from technology companies entering the insurance intermediary business and direct sales by insurance companies[65] - The company noted potential impacts of inflation on operating expenses, particularly in labor and facility leases[81] Stock and Shareholder Information - The Company effectuated a 1-for-17 reverse stock split on July 1, 2024, resulting in a rounding addition of approximately 110,350 shares valued at par, totaling $9,490[72] Key Financial Metrics - Adjusted EBITDA (AEBITDA) is a key financial performance metric used by the Company to evaluate operational performance across reporting periods[73]

Financial Performance - Commission income revenue increased by $153,782, or 4%, to $4,236,220 in Q1 2025, compared to $4,082,438 in Q1 2024[3] - Commission expense increased by $192,885, or 15%, to $1,469,427 in Q1 2025, compared to $1,276,542 in Q1 2024[7] - Salaries and wages increased by $398,175, or 22%, to $2,229,837 in Q1 2025, compared to $1,831,662 in Q1 2024[7] - Net loss decreased by $3,609,781, or 68%, to $1,736,882 in Q1 2025, compared to $5,346,663 in Q1 2024[7] - Adjusted EBITDA ("AEBITDA") increased by $219,061, or 297%, to an AEBITDA gain of $145,407 in Q1 2025, compared to an AEBITDA loss of ($73,654) in Q1 2024[7] Strategic Initiatives - The company is moving closer to completing the Spetner acquisition, which is expected to enhance insurance capabilities and strengthen financial and market position[2] - The launch of RELI Auto Leasing allows agency partners to provide vehicle leasing access nationwide, enhancing client relationships and opening a new revenue stream[2] - Continued adoption of advanced InsurTech solutions is transforming the agent experience through AI-driven automation and improved underwriting precision[2] - The company aims to build RELI Exchange into the largest agency partner network in the U.S., driving significant shareholder value[9] - Management's disciplined cost controls and efficiencies gained under the OneFirm initiative are reflected in decreasing standard non-equity-based costs[7]

Core Viewpoint - Reliance Global Group, Inc. reported improved financial results for Q1 2025, highlighting organic revenue growth, reduced net loss, and increased AEBITDA, positioning the company for long-term growth and enhanced profitability [2][5]. Financial Performance - Commission income revenue increased by $153,782, or 4%, to $4,236,220 in Q1 2025 from $4,082,438 in Q1 2024, reflecting organic growth in insurance distribution channels [5]. - Commission expense rose by $192,885, or 15%, to $1,469,427 in Q1 2025 compared to $1,276,542 in Q1 2024, due to higher payouts to agents [5]. - Salaries and wages increased by $398,175, or 22%, to $2,229,837 in Q1 2025 from $1,831,662 in Q1 2024, primarily due to $540,015 in non-cash equity awards [5]. - General and administrative expenses increased by $141,388 to $1,516,228 in Q1 2025 from $1,374,890 in Q1 2024, mainly due to $484,970 of non-cash equity pay [5]. - Net loss decreased by $3,609,781, or 68%, to $1,736,882 in Q1 2025 from $5,346,663 in Q1 2024, driven by the elimination of impairment charges [5]. - Adjusted EBITDA (AEBITDA) increased by $219,061, or 297%, to a gain of $145,407 in Q1 2025 compared to a loss of ($73,654) in Q1 2024, indicating a trend toward increased profitability [5][14]. Strategic Initiatives - The company is focused on completing the Spetner acquisition, which is expected to enhance its insurance capabilities and strengthen its market position [2]. - The launch of RELI Auto Leasing allows agency partners to offer vehicle leasing services, enhancing client relationships and creating a new revenue stream [2]. - Continued adoption of advanced InsurTech solutions is transforming the agent experience through AI-driven automation and improved underwriting precision [2].

Company Overview - Reliance Global Group, Inc. is an InsurTech pioneer utilizing artificial intelligence (AI) and cloud-based technologies to enhance efficiencies in the insurance agency and brokerage industry [4] - The company's B2B InsurTech platform, RELI Exchange, offers independent insurance agencies a comprehensive suite of business development tools to compete with large national agencies while minimizing back-office costs [4] - Reliance also operates a B2C platform, 5minuteinsure.com, which uses AI and data mining to provide quick online insurance quotes for auto, home, and life insurance [4] - The company has a portfolio of retail insurance agencies that are leaders in their regions across the United States, offering a diverse range of insurance products [4] Upcoming Events - Reliance Global Group will host a conference call on May 14, 2025, at 4:30 PM Eastern Time to discuss Q1 2025 financial results and provide a business update [1] - The conference call can be accessed via telephone or through a webcast available on the company's investor relations website [2] Replay Information - A replay of the conference call will be available on the investor relations section of the company's website until May 13, 2026 [3] - Telephone replay will be accessible approximately one hour after the call until May 27, 2025 [3]

Core Viewpoint - Reliance Global Group, Inc. has launched RELI Auto Leasing, a service that allows agency partners to offer vehicle leasing to clients while earning commissions, enhancing revenue opportunities and maintaining a focus on insurance services [1][3]. Group 1: New Service Launch - RELI Auto Leasing enables agency partners to connect clients with vehicle leasing options without needing specialized training in auto leasing [3]. - The service aims to enhance the value proposition for independent agents by integrating auto leasing into their existing insurance offerings [3][4]. - Clients benefit from a wide selection of vehicles available for delivery across the U.S., streamlining the leasing process with guidance from their insurance advisors [3][4]. Group 2: Revenue Opportunities - Agency partners can earn commissions on both the lease and the residual insurance policy, creating additional income streams [1][3]. - The competitive pricing and convenience of the leasing options make it an attractive choice for clients [3]. - Feedback from agency partners indicates satisfaction with the Insurtech white-labelled quoting engine and CRM, reinforcing RELI Exchange as a preferred insurance partner [3][4]. Group 3: Strategic Vision - The initiative aligns with the company's vision to maximize opportunities for agency partners through a comprehensive suite of solutions [4]. - RELI Auto Leasing is part of the company's commitment to innovation, empowering independent agents to compete nationally through technology and strategic partnerships [4]. - The company continues to expand its ecosystem, focusing on delivering cutting-edge tools and services that enhance customer experience and drive success for partners [4].

Financial Data and Key Metrics Changes - For the year ended December 31, 2024, revenues increased by $0.3 million or 2% to $14.1 million compared to $13.7 million in 2023, attributed to sustained organic growth [19] - Commission expense increased by $0.5 million or 12%, driven by swings in the company's commission income revenue mix and organic revenue growth [20] - Total operating expenses decreased by 21% or $5.9 million, leading to a 45% improvement in loss from operations, which improved by $6.2 million [21] - Net loss decreased by $2.9 million or 24% to $9.1 million from $12.1 million [21] - Adjusted EBITDA improved significantly by 39% or $0.2 million, moving from a loss of $0.5 million to a loss of $0.3 million [22] Business Line Data and Key Metrics Changes - The company reported a disciplined fiscal management approach and strategic investments in technology, which contributed to improved profitability and operational performance [11][12] - The Quote & Bind platform has expanded to feature more carriers and a wider selection of insurance products, enhancing efficiency and underwriting accuracy [13][14] Market Data and Key Metrics Changes - The company is positioned to seize new opportunities in the rapidly evolving insurtech space, with a focus on innovation and operational excellence [15][16] Company Strategy and Development Direction - The OneFirm strategy has been crucial in integrating agency operations into a tech-driven platform, boosting efficiency and cutting costs [11] - The planned acquisition of Spetner Associates is expected to create substantial value and enhance market presence [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the company's future, highlighting the expected completion of the Spetner acquisition and ongoing enhancements to the Quote & Bind platform as key growth drivers [15][16] - The company aims to build a multibillion-dollar enterprise that creates sustainable long-term value for shareholders [16] Other Important Information - The company is committed to transforming the insurance industry through technology and automation, equipping agents with advanced tools to improve efficiency [14] Q&A Session Summary Question: Status of the Spetner acquisition - Management indicated that the acquisition is on track, with finishing touches being completed and expressed excitement about the growth and integration potential with Spetner Associates [27][28]

Acquisitions and Growth Strategy - As of December 31, 2024, the company has acquired nine insurance agencies, enhancing its market presence and operational capabilities[194] - The company plans to focus on asset acquisitions in insurance markets and organic growth through geographic expansion over the next 12 months[195] - The company aims to identify and acquire undervalued insurance agencies in growing or underserved segments, including healthcare and Medicare[202] - The company’s management team has over 100 years of combined experience in real estate, insurance, and financial services, driving its acquisition strategy[192] Revenue and Financial Performance - The company’s revenue is primarily derived from commissions paid by health insurance carriers for plans purchased by members[203] - Commission income for the year ended December 31, 2024, was $14,054,361, representing a 2% increase from $13,731,826 in 2023[223] - Commission expense increased by 12% to $4,189,599 in 2024 from $3,732,939 in 2023, driven by revenue mix changes[223] - Total operating expenses decreased by 21% to $21,749,680 in 2024 from $27,611,018 in 2023[223] - Loss from operations improved by 45%, decreasing to $7,695,319 in 2024 from $13,879,192 in 2023[223] - Net loss for the year ended December 31, 2024, was $9,071,584, a 24% improvement compared to a net loss of $12,009,982 in 2023[223] Cash Flow and Financing - Net cash used in operating activities increased to approximately $2,515,000 in 2024, compared to $847,970 in 2023, representing a 197% increase[231] - Cash balance as of December 31, 2024, was approximately $1,798,000, down from $2,739,000 in 2023[227] - Net cash provided by financing activities was approximately $1,657,000 in 2024, compared to $966,923 in 2023[233] Stock and Equity Management - The company executed a 1-for-15 reverse stock split on February 23, 2023, followed by a 1-for-17 reverse stock split on July 1, 2024[208][209] - The company increased its authorized shares from 117,647,058 to 2,000,000,000 as of February 7, 2025, allowing for greater flexibility in capital raising[211] - Equity-based compensation is recognized as an expense over the service period, with performance-based awards dependent on the likelihood of achieving performance measures[245] - Fair value calculations for stock-based awards require significant judgment, including estimates of stock price volatility and expected option life[246] Operational Metrics and Estimates - The company considers Adjusted EBITDA (AEBITDA) an important financial metric for evaluating operational performance across reporting periods[219] - The company experienced a 97% decrease in estimated acquisition earn-out payables, from $1,716,873 in 2023 to $47,761 in 2024[223] - The company anticipates that inflation may materially impact pricing and operating expenses in future periods[228] - Significant estimates and assumptions, including revenue growth rates and expenses, are used in long-range planning and business forecasting[239] Impairment and Tax Assets - Goodwill is tested for impairment annually, with qualitative factors such as industry performance and financial metrics considered in the assessment[238] - Intangible assets with indefinite lives are tested for impairment annually using discounted cash flow methods, which involve assumptions about future sales and costs[240] - The company benefits from deferred tax assets, with realizability dependent on future taxable income generation, influenced by capital spending and taxable income levels[241] Revenue Recognition - Revenue recognition includes contingent commissions based on achieving specific targets set by insurance carriers, with revenue recognized only when significant reversals are unlikely[244]

Financial Performance - Commission income revenue increased by $322,535, or 2%, to $14,054,361 in 2024, compared to $13,731,826 in 2023[3] - Net loss decreased by $2,938,398, or 24%, to $9,071,584 in 2024, versus $12,009,982 in 2023[7] - Adjusted EBITDA loss improved significantly during 2024, decreasing 39% or $205,573, from $(526,798) in 2023 to $(321,224) in 2024[7] - Commission expense increased by $456,660, or 12%, to $4,189,599 in 2024, compared to $3,732,939 in 2023[3] - Salaries and wages decreased by 4%, or $276,242, from $7,226,810 in 2024, versus $7,503,052 in 2023[3] - General and administrative expenses increased nominally by $129,646, or 3%, to $4,219,635 in 2024, versus $4,089,989 in 2023[3] Strategic Initiatives - The planned Spetner acquisition is in the final closing stages and is expected to expand Reliance's insurance offerings[4] - The RELI Exchange Quote & Bind platform has been expanded to include more carriers and a broader range of insurance products[5] - The Company aims to capitalize on emerging opportunities in the InsurTech landscape through strategic acquisitions and technology investments[6] - The Company is focused on innovation, operational excellence, and delivering superior service to agents and customers[6]