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]

Core Insights - Reliance Global Group reported continued revenue growth and strong operational execution in 2024, driven by disciplined fiscal management, strategic investments in technology, and targeted acquisitions [2][4] - The company's OneFirm strategy has successfully integrated agency operations into a unified, technology-driven platform, enhancing efficiency and reducing costs [2][5] - The planned Spetner acquisition is expected to expand Reliance's insurance offerings and strengthen its competitive position [4][5] Financial Performance - Commission income revenue increased by $322,535, or 2%, to $14,054,361 in 2024, compared to $13,731,826 in 2023 [6] - Commission expense increased by $456,660, or 12%, to $4,189,599 in 2024, driven by the commission income revenue mix [6] - Net loss decreased by $2,938,398, or 24%, to $9,071,584 in 2024, compared to $12,009,982 in 2023, due to less intangible impairment charges [6] - Adjusted EBITDA loss improved significantly, decreasing 39% or $205,573, from $(526,798) in 2023 to $(321,224) in 2024, indicating a trend toward profitability [6][17] Strategic Initiatives - The RELI Exchange Quote & Bind platform has been expanded, allowing agents to generate competitive quotes and bind policies in real time, enhancing efficiency and service delivery [2][5] - The platform leverages AI, automation, and advanced data analytics to improve underwriting precision and service quality [2][5] - The company aims to position RELI Exchange as a comprehensive InsurTech solution, empowering agents with advanced tools to maximize profitability [7] Future Outlook - The company is optimistic about its future, focusing on disciplined expansion, cutting-edge technology, and strategic acquisitions to capitalize on emerging opportunities in the InsurTech landscape [7] - The completion of the Spetner acquisition and ongoing enhancements to the Quote & Bind platform are expected to drive significant growth [7]

Lakewood, NJ, March 04, 2025 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (NASDAQ: RELI) (“Reliance” or the “Company”), announced today that it will host a conference call Thursday, March 6, 2025, at 4:30 PM Eastern Time to discuss financial results for the fourth quarter and year ended December 31, 2024 and provide a business update. The conference call will be available via telephone by dialing toll-free +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering access c ...

LAKEWOOD, N.J., Feb. 18, 2025 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (NASDAQ:RELI) ("Reliance", "we" or the "Company") today announced a significant expansion of its Commercial Quote & Bind InsurTech solution on RELI Exchange, building off the highly successful beta launch late last year. This expansion brings additional carriers and more product offerings to RELI Exchange's agent distribution channel, with plans to continuously introduce new lines of business and carriers in the coming months. "At ...

LAKEWOOD, N.J., Feb. 18, 2025 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: RELI) (“Reliance”, “we” or the “Company”) today announced a significant expansion of its Commercial Quote & Bind InsurTech solution on RELI Exchange, building off the highly successful beta launch late last year. This expansion brings additional carriers and more product offerings to RELI Exchange’s agent distribution channel, with plans to continuously introduce new lines of business and carriers in the coming months. “A ...

OneFirm Approach Delivering Results - Drives Increased Revenue, Reduced Expenses, and Growing EBITDA Spetner Acquisition Nears Final Stages, Strengthening Company's Future Prospects LAKEWOOD, N.J., Dec. 23, 2024 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (NASDAQ:RELI) ("Reliance", "we" or the "Company") today provided a year-end review of its operations, as well as a look to the future.  Ezra Beyman, Chairman and Chief Executive Officer of Reliance commented, "2024 has been a transformative year for Re ...

Acquisition Strategy - As of September 30, 2024, the Company has acquired nine insurance agencies as part of its aggressive acquisition strategy [69] - The Company plans to acquire 80% of Spetner Associates for $13,714,286, which includes $5,500,000 in cash and stock issuance [70] - The Company focuses on acquiring undervalued insurance agencies in growing or underserved segments, including healthcare and Medicare [76] - The acquisition strategy aims to offer lower rates, thereby boosting the Company's competitive position within the insurance industry [77] Financial Performance - Commission income for the three months ended September 30, 2024, was $3,441,458, representing a 5% increase from $3,275,583 in the same period of 2023 [83] - Total operating expenses decreased by 16% to $3,953,435 for the three months ended September 30, 2024, down from $4,710,637 in 2023 [83] - Net loss for the three months ended September 30, 2024, was $(837,314), a 502% increase compared to a net loss of $(139,004) in 2023 [83] - AEBITDA for the three months ended September 30, 2024, was $42,508, a significant improvement from $(200,602) in the same period of 2023 [86] - Commission income for the nine months ended September 30, 2024, was $10,757,238, reflecting a 3% increase from $10,410,591 in 2023 [84] - Total operating expenses for the nine months ended September 30, 2024, increased by 19% to $17,447,516, compared to $14,688,899 in 2023 [84] - Net loss for the nine months ended September 30, 2024, was $(7,673,373), a 157% increase from $(2,982,827) in 2023 [84] - AEBITDA for the nine months ended September 30, 2024, was $(209,114), an improvement from $(467,635) in the same period of 2023 [86] Cash Flow and Liquidity - As of September 30, 2024, the company had a cash balance of approximately $2,354,000, down from $2,739,000 at December 31, 2023 [87] - The company sold 658,088 shares of common stock under the ATM Agreement, receiving net proceeds of $2,824,227 during the nine months ended September 30, 2024 [88] - Net cash used in continuing operating activities for the nine months ended September 30, 2024, was approximately $1,648,000, a decrease from $3,833,545 for the same period in 2023, reflecting a significant improvement [93] - Cash flows used in continuing and discontinued investing activities were approximately $59,000 for the nine months ended September 30, 2024, compared to $719,000 provided in the same period in 2023, indicating a shift towards cash outflows [94] - Cash provided by continuing and discontinued financing activities was approximately $1,321,449 for the nine months ended September 30, 2024, up from $576,212 in the prior year, driven by proceeds from common shares issued [95] - The net loss for the nine months ended September 30, 2024, was approximately $7,673,000, with non-cash adjustments totaling approximately $5,830,000 [93] - The company reported a net increase in cash due to changes in net working capital items of approximately $195,000 during the nine months ended September 30, 2024 [93] Operational Efficiency - RELI Exchange has increased its agent roster by over 130% since its inception, enhancing the Company's B2B InsurTech capabilities [71] - The Company adopted a "OneFirm" strategy to improve cross-selling and operational efficiency across its agencies, enhancing market presence [72] - The company has extensive experience in managing insurance portfolios, with over 100 years of combined management experience in the sector [76] Corporate Governance - The Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of disclosure controls and procedures as of September 30, 2024, and determined them to be effective [99] - There have been no changes in internal control over financial reporting that materially affected the company during the most recently completed fiscal quarter [100] - The company is subject to various legal proceedings, but management does not believe these will have a material adverse effect on its financial position or operations [102] Stock and Shareholder Actions - The Company executed a 1-for-17 reverse stock split on July 1, 2024, resulting in a rounding addition of approximately 110,350 shares valued at par [80] - Adjusted EBITDA (AEBITDA) is a key financial performance metric used by the Company to evaluate operational performance across reporting periods [81]

Reliance Global Group, Inc. (NASDAQ:RELI) Q2 2024 Earnings Conference Call July 25, 2024 4:30 PM ET Company Participants Ted Ayvas - Investor Relations Ezra Beyman - Chairman and CEO Joel Markovits - Chief Financial Officer Conference Call Participants Nick Pincus - Forest Capital Operator Good day. And welcome to the Reliance Global Group’s Second Quarter Business Update Conference Call. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions-and-comments ...