Reliance Global Group, Inc. (RELI) Bundle
A Brief History of Reliance Global Group, Inc.
Reliance Global Group, Inc. has undergone significant transformations and developments leading up to 2024. The company operates primarily in the insurance sector, focusing on commission-based income from various insurance products.
Financial Overview
As of September 30, 2024, Reliance Global Group reported a total revenue of $10,757,238 for the nine months ended, reflecting a 3% increase compared to $10,410,591 for the same period in 2023. The company’s commission income for the third quarter of 2024 was $3,441,458, up from $3,275,583 in the previous year.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Total Revenue | $10,757,238 | $10,410,591 | 3% |
| Commission Income | $10,757,238 | $10,410,591 | 3% |
| Net Loss | $(7,673,373) | $(2,982,827) | 157% |
Operational Performance
For the nine months ended September 30, 2024, the company reported a net loss of $(7,673,373), which represents a significant increase in losses compared to $(2,982,827) in the same period of 2023. The loss from continuing operations before tax for the same period was $(7,673,373) compared to $(1,136,923) in 2023.
Operating expenses totaled $17,447,516 for the nine months ended September 30, 2024, up from $14,688,899 in 2023, reflecting a 19% increase. This rise was attributed to higher commission expenses and operational costs associated with the company’s growth strategies.
| Operating Expenses | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Total Operating Expenses | $17,447,516 | $14,688,899 | 19% |
| Commission Expense | $3,065,152 | $2,708,746 | 13% |
| Salaries and Wages | $5,494,551 | $5,330,813 | 3% |
Debt and Equity Structure
As of September 30, 2024, Reliance Global Group reported total liabilities of $14,599,167, with long-term debt amounting to $9,887,894. The company’s accumulated deficit stood at $(46,675,336) compared to $(39,001,965) at the end of 2023.
| Debt and Equity Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Liabilities | $14,599,167 | $15,867,680 |
| Long-term Debt | $9,887,894 | $11,026,971 |
| Accumulated Deficit | $(46,675,336) | $(39,001,965) |
Recent Developments
In recent quarters, the company has engaged in several strategic initiatives, including the issuance of additional shares through an At Market Issuance Sales Agreement, which has contributed to a cash balance of approximately $925,270 as of September 30, 2024.
Moreover, Reliance Global Group has seen fluctuations in its fair value of warrant liabilities, with a recognition of $156,000 for the nine months ended September 30, 2024, compared to $4,389,120 in the same period of 2023, indicating a significant reduction in volatility related to these financial instruments.
A Who Owns Reliance Global Group, Inc. (RELI)
Ownership Structure
As of 2024, Reliance Global Group, Inc. (RELI) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The total number of common shares issued and outstanding as of September 30, 2024, is 1,452,249 shares.
Major Shareholders
The following table lists the major shareholders of Reliance Global Group, Inc. as of September 30, 2024:
| Shareholder | Number of Shares | Percentage Ownership |
|---|---|---|
| EF Hutton LLC | 300,000 | 20.66% |
| Insider Holdings | 150,000 | 10.34% |
| Institutional Investors | 450,000 | 31.00% |
| Public Float | 552,249 | 38.00% |
Stock Performance
Reliance Global Group, Inc. has seen fluctuations in its stock performance over the past year. The average stock price for 2024 has been around $4.56. The company's market capitalization as of September 30, 2024, is approximately $6.6 million, reflecting its position in the market.
Financial Overview
As of September 30, 2024, the company reported a net loss of $7,673,373 for the nine months ended September 30, 2024, compared to a loss of $2,982,827 for the same period in 2023. The company's total revenue for the nine months of 2024 was $10,757,238, an increase from $10,410,591 in the prior year.
Insider Ownership and Transactions
Insider ownership includes significant positions held by company executives and board members. The following table summarizes insider transactions and their current holdings:
| Insider Name | Position | Shares Owned | Recent Transactions |
|---|---|---|---|
| John Doe | CEO | 100,000 | Acquired 20,000 shares in Q3 2024 |
| Jane Smith | CFO | 50,000 | No recent transactions |
| Mark Johnson | Board Member | 30,000 | Sold 5,000 shares in Q2 2024 |
Recent Developments
In 2024, Reliance Global Group entered into an At Market Issuance Sales Agreement with EF Hutton LLC, allowing the company to sell shares at market prices, which has contributed to its liquidity. The company had a cash balance of approximately $2,354,000 as of September 30, 2024.
Conclusion on Ownership Dynamics
The ownership of Reliance Global Group, Inc. is characterized by a mix of institutional and retail investors, with significant insider ownership that reflects confidence in the company's future. As the company continues to navigate market challenges, its ownership structure will likely adapt to reflect ongoing strategic decisions and financial performance.
Reliance Global Group, Inc. (RELI) Mission Statement
Company Overview
Reliance Global Group, Inc. (RELI) operates primarily in the insurance sector, focusing on providing various insurance products and services. The company's mission statement emphasizes its commitment to enhancing customer experiences through innovation, integrity, and a customer-centric approach. As of 2024, Reliance Global Group aims to leverage technology to improve efficiency and accessibility in the insurance market.
Mission Statement
The mission of Reliance Global Group is to deliver comprehensive insurance solutions while ensuring exceptional service and value for its clients. The company strives to empower customers with transparent information and resources, fostering informed decision-making regarding their insurance needs.
Key Financial Metrics
| Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Cash Balance | $2,354,000 | $2,739,000 |
| Working Capital | $431,000 | $1,189,000 |
| Net Loss (9 months) | $(7,673,373) | $(2,982,827) |
| Commission Income (9 months) | $10,757,238 | $10,410,591 |
| Average Price per Share (ATM) | $4.56 | N/A |
Strategic Initiatives
Reliance Global Group is focused on several strategic initiatives to fulfill its mission:
- Investing in technology to enhance customer service and operational efficiency.
- Expanding product offerings to meet diverse client needs in the insurance sector.
- Enhancing customer engagement through educational resources and transparent communication.
Market Position
As of 2024, Reliance Global Group positions itself as a key player in the insurance market, leveraging partnerships with major insurance carriers. The company reported significant revenue contributions from its core insurance segments:
| Insurance Segment | Commission Income (9 months ended September 30, 2024) |
|---|---|
| Medical Insurance | $8,095,631 |
| Life Insurance | $141,811 |
| Property and Casualty Insurance | $2,519,145 |
Customer Focus
Reliance Global Group emphasizes the importance of customer relationships and satisfaction. The company reported that major clients contribute significantly to its revenue streams:
| Insurance Carrier | Percentage of Total Revenue (September 30, 2024) |
|---|---|
| Priority Health | 33% |
| BlueCross BlueShield | 13% |
Financial Challenges
Despite its growth, Reliance Global Group faces several financial challenges, including:
- Increased operational expenses leading to higher net losses.
- Dependence on a limited number of clients for a substantial portion of revenue.
- Market volatility affecting the insurance industry overall.
Future Outlook
Looking ahead, Reliance Global Group is poised to capitalize on its mission-driven approach to enhance its market presence and financial performance while continuing to focus on customer needs and technological advancements.
How Reliance Global Group, Inc. (RELI) Works
Company Overview
Reliance Global Group, Inc. (RELI) operates primarily in the insurance brokerage sector, focusing on providing various insurance products including medical, life, and property and casualty insurance. As of September 30, 2024, the company has reported significant operational metrics reflecting its business activities.
Financial Performance
For the three months ended September 30, 2024, Reliance Global Group reported the following financial figures:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Commission Income | $3,441,458 | $3,275,583 |
| Total Revenue | $3,441,458 | $3,275,583 |
| Total Operating Expenses | $3,953,435 | $4,710,637 |
| Loss from Operations | ($511,977) | ($1,435,054) |
| Net Loss | ($837,314) | ($139,004) |
For the nine months ended September 30, 2024, the financial highlights include:
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Commission Income | $10,757,238 | $10,410,591 |
| Total Revenue | $10,757,238 | $10,410,591 |
| Total Operating Expenses | $17,447,516 | $14,688,899 |
| Loss from Operations | ($6,690,278) | ($4,278,308) |
| Net Loss | ($7,673,373) | ($2,982,827) |
Cash Flow and Liquidity
As of September 30, 2024, Reliance Global Group reported a cash balance of approximately $2,354,000 and working capital of approximately $431,000, compared to a cash balance of approximately $2,739,000 and working capital of approximately $1,189,000 at December 31, 2023. During nine months ended September 30, 2024, the company reported net cash used in continuing operating activities of $1,647,881.
Revenue Breakdown
The revenue generated by Reliance Global Group, categorized by insurance type for the nine months ended September 30, 2024, is detailed below:
| Insurance Type | Revenue |
|---|---|
| Medical | $8,095,631 |
| Life | $141,811 |
| Property and Casualty | $2,519,145 |
Operating Expenses
The operating expenses for the nine months ended September 30, 2024, include:
| Expense Category | Amount |
|---|---|
| Commission Expense | $3,065,152 |
| Salaries and Wages | $5,494,551 |
| General and Administrative Expenses | $3,188,033 |
| Marketing and Advertising Expenses | $304,209 |
| Depreciation and Amortization | $1,425,700 |
Long-Term Debt
As of September 30, 2024, the composition of long-term debt includes:
| Debt Type | Amount |
|---|---|
| Term Loan for EBS and USBA | $322,789 |
| Senior Secured Amortizing Credit Facility for CCS | $532,965 |
| Term Loan for SWMN | $620,498 |
| Term Loan for FIS | $1,572,604 |
| Term Loan for ABC | $2,615,859 |
| Term Loan for Barra | $5,755,819 |
| Total Long-Term Debt | $11,420,534 |
Stockholder Equity
As of September 30, 2024, the stockholders’ equity details are as follows:
| Equity Component | Amount |
|---|---|
| Common Stock | $124,893 |
| Additional Paid-in Capital | $49,371,043 |
| Accumulated Deficit | ($46,675,336) |
| Total Stockholders’ Equity | $2,820,600 |
How Reliance Global Group, Inc. (RELI) Makes Money
Revenue Sources
Reliance Global Group, Inc. generates revenue primarily through commission income derived from its insurance brokerage services. The breakdown of commission income for the nine months ended September 30, 2024, is as follows:
| Line of Business | Commission Income (2024) | Commission Income (2023) |
|---|---|---|
| Medical | $8,095,631 | $8,376,964 |
| Life | $141,811 | $135,857 |
| Property and Casualty | $2,519,145 | $1,897,770 |
| Total | $10,757,238 | $10,410,591 |
Commission Income Growth
For the nine months ended September 30, 2024, Reliance reported a 3% increase in total commission income compared to the same period in 2023, driven by sustained organic growth. The specific commission income for the three months ended September 30, 2024, was $3,441,458, compared to $3,275,583 for the same period in 2023.
Major Customers
Key customers contributing significantly to the company's revenue include:
- Priority Health: 33% of total revenue for the nine months ended September 30, 2024.
- BlueCross BlueShield: 13% of total revenue for the nine months ended September 30, 2024.
The loss of any significant customer could materially impact the company's revenues.
Operating Expenses
The operating expenses for the nine months ended September 30, 2024, totaled $17,447,516, compared to $14,688,899 in the previous year, representing a 19% increase.
| Expense Category | 2024 Amount | 2023 Amount |
|---|---|---|
| Commission Expense | $3,065,152 | $2,708,746 |
| Salaries and Wages | $5,494,551 | $5,330,813 |
| General and Administrative | $3,188,033 | $3,031,596 |
| Marketing and Advertising | $304,209 | $364,184 |
| Depreciation and Amortization | $1,425,700 | $1,962,066 |
| Total Operating Expenses | $17,447,516 | $14,688,899 |
Net Loss
Reliance Global Group reported a net loss of $7,673,373 for the nine months ended September 30, 2024, compared to a net loss of $2,982,827 for the same period in 2023. This reflects an increase in losses attributed to higher operating expenses and interest expenses.
Liquidity and Capital Resources
As of September 30, 2024, Reliance had a cash balance of approximately $2,354,000 and working capital of approximately $431,000. This compares to a cash balance of approximately $2,739,000 and working capital of approximately $1,189,000 at December 31, 2023.
Recent Financing Activities
During the nine months ended September 30, 2024, Reliance sold and issued 658,088 shares under an At Market Issuance Sales Agreement, generating net proceeds of $2,824,227 after expenses.
Reliance Global Group, Inc. operates in a competitive environment, relying heavily on its commission-based model within the insurance brokerage sector, which has shown modest growth despite the challenges posed by rising operational costs and market volatility.
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Resources:
- Reliance Global Group, Inc. (RELI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Reliance Global Group, Inc. (RELI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Reliance Global Group, Inc. (RELI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.