Revenue Growth - Revenue increased by $4.5 million or 136.0% to $7.9 million for the three months ended June 30, 2024, compared to $3.3 million for the same period in 2023[171] - The primary driver of revenue growth was the addition of $3.7 million in reinsurance premium revenue from the merger in February 2024[172] - Revenue for the six months ended June 30, 2024, increased by $6.7 million or 103.0% to $13.1 million from $6.5 million for the same period in 2023[176] Expenses - Total expenses increased by $4.4 million or 46.0% to $13.9 million for the three months ended June 30, 2024, from $9.5 million for the same period in 2023[173] - Total expenses for the six months ended June 30, 2024, increased by $8.6 million or 49.3% to $26.0 million from $17.4 million for the same period in 2023[178] Loss from Operations - Loss from operations decreased by $0.2 million or 2.5% to $6.1 million for the three months ended June 30, 2024, compared to $6.2 million in the prior year[174] - Loss from operations increased by $1.9 million or 17.6% to $12.9 million for the six months ended June 30, 2024, compared to $10.9 million in the prior year[179] Net Loss - Net loss from continuing operations decreased by $0.2 million or 3.3% for the three months ended June 30, 2024, from $6.3 million in the same period of 2023[175] - Net loss from continuing operations increased by $0.1 million or 0.7% for the six months ended June 30, 2024, from $11.1 million in the same period of 2023[180] Merger Impact - The merger with FG Group Holdings, Inc. was completed on February 29, 2024, resulting in a significant increase in reinsurance and asset management operations[165] Cash Flow - For the six months ended June 30, 2024, net cash used in operating activities from continuing operations was approximately $3.2 million, compared to $0.3 million for the same period in 2023[202] - Net cash provided by investing activities from continuing operations was approximately $4.3 million for the six months ended June 30, 2024, compared to $0.1 million for the same period in 2023[203] - Cash used in financing activities during the six months ended June 30, 2024 was approximately $1.3 million, compared to cash provided by financing activities of $2.0 million for the same period in 2023[204] - The cash and cash equivalents from continuing operations at the end of the period were $5.85 million as of June 30, 2024, compared to $4.86 million as of June 30, 2023[201] - The company experienced a net cash outflow for working capital, including an increase in net outflows related to its insurance business[202] - Cash provided by investing activities included $1.9 million from the merger of FGF and FGH, $1.2 million from the sale of equity securities, and $1.3 million from the sale of the Digital Ignition building[203] Accounting Policies - The company recorded no premium deficiency adjustments during the periods presented[194] - The company uses a Probability of Default / Loss Given Default model to calculate an allowance for expected credit losses for its reinsurance balances receivable[184] - The company recognizes revenue when a customer obtains control of promised goods or services, measured as the amount of consideration expected to be received[191] - The company has not established any deferred contract costs as of June 30, 2024 or December 31, 2023[193]
FG Financial (FGF) - 2024 Q2 - Quarterly Report