Financial Performance - The company reported a net loss of $3.8 million for the three months ended March 31, 2022[195]. - The net loss from continuing operations for Q1 2022 was $3.8 million, compared to a loss of $0.1 million in Q1 2021[208]. - Net premiums earned for Q1 2022 were approximately $2.5 million, compared to $0.2 million in Q1 2021, reflecting a significant increase[196]. - Net investment loss for Q1 2022 was approximately $2.3 million, a decline from a net income of $1.85 million in Q1 2021[199]. - Net losses and loss adjustment expenses for Q1 2022 were $1.5 million, up from $0.1 million in Q1 2021, indicating increased claims[201]. - General and administrative expenses decreased to $1.7 million in Q1 2022 from $2.0 million in Q1 2021, primarily due to one-time fees in the prior year[202]. Shareholder Equity and Stock Transactions - The total shareholders' equity attributable to FG Financial Group, Inc. decreased to $29.8 million as of March 31, 2022, down from $34.0 million as of January 1, 2022[195]. - The company completed a public offering of 194,580 shares of 8.00% Cumulative Preferred Stock, Series A, for net proceeds of approximately $4.2 million, bringing total Series A shares outstanding to 894,580 as of March 31, 2022[188]. - In Q4 2021, the company sold 750,000 shares of common stock at $4.00 per share, generating net proceeds of approximately $2.5 million, and completed a rights offering for 691,735 shares, raising approximately $2.7 million[192]. - As of March 31, 2022, the company had 6,528,001 common shares outstanding, an increase from 6,497,205 shares as of January 1, 2022[195]. Cash Flow and Investments - Cash and cash equivalents at the end of Q1 2022 were $8.5 million, down from $8.8 million at the end of Q1 2021[212]. - Net cash used by operating activities in Q1 2022 was approximately $1.0 million, driven by a net loss and adjustments related to unrealized gains[212]. - Net cash used by investing activities in Q1 2022 was $5.6 million, primarily for increased investment in the Fund for mergers and acquisitions[213]. - The company recorded a cash dividend of approximately $447,000 on Series A Preferred Shares in Q1 2022[213]. Reinsurance and Investment Strategy - The company focuses on opportunistic collateralized and loss-capped reinsurance, while also investing in SPAC and SPAC sponsor-related businesses[165]. - As of March 31, 2022, reinsurance balances receivable were $3.8 million, a slight decrease from $3.9 million as of December 31, 2021[182]. - The company has a significant investment in FedNat Holding Company, holding 790,371 shares as of March 31, 2022, with restrictions on voting and transfer until December 2024[167]. Risks and Uncertainties - The company has been impacted by the COVID-19 pandemic, which has created uncertainty in financial estimates and assumptions[170]. - The company is subject to various risks, including those related to the reinsurance industry and investment strategies, which may affect future performance[164]. Deferred Tax Assets - As of March 31, 2022, the company has gross deferred tax assets of approximately $6.6 million, with a valuation allowance resulting in a net deferred income tax asset of $0[207].
FG Financial (FGF) - 2022 Q1 - Quarterly Report