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]
Reliance (RELI) - 2025 Q1 - Quarterly Report