EZRA

Good day, everyone, and welcome to the Reliance Global Group 2026 second quarter business update. At this time, all participants are placed on a listen-only mode. If you have any questions or comments during the presentation, you may press star one on your phone to enter the question queue at any time, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to hand the floor over to your host, Ted Ayvas, Investor Relations. Sir, the floor is yours.

Thanks, Matthew. Good afternoon, and thank you for joining Reliance Global Group's 2026 second quarter financial results and business update conference call. On the call with us today are Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group, and Joel Markovits, Chief Financial Officer of Reliance. Earlier today, the company announced its operating results for the quarter ended June 30th, 2026, and the press release is posted on the company's website, www.relianceglobalgroup.com. In addition, the company will be filing its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission today, which can also be accessed on the company's website as well as the SEC's website at www.sec.gov. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020.

Before Mr. Beyman reviews the company's operating results for the quarter ended June 30th, 2026, we would like to remind everyone that this conference call may contain forward-looking statements. All statements other than statements of historical facts contained in the conference call, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements. The words anticipate, estimate, expect, project, plan, seek, intend, believe, may, might, will, should, could, likely, continue, design, and the negative of such terms, and other words and terms of similar expressions are intended to identify forward-looking statements. These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, strategy, short-term and long-term business operations and objectives, and financial needs.

These forward-looking statements are subject to several risks, uncertainties, and assumptions as described in the company's Form 10-K filed with the U.S. Securities and Exchange Commission. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this conference call may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the company believes that expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the company nor any person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The company disclaims any duty to update any of these forward-looking statements.

All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made on this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. Having said that, I'd now like to turn the call over to Mr. Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group. Ezra?

Thank you very much, Ted, good afternoon, everyone. Thank you for joining us today and for your continued interest in Reliance Global Group. The second quarter represented another important step in the evolution of our company. Over the past year, we've worked to simplify our organization, strengthen our balance sheet, and streamline our operations to position Reliance for long-term growth. We believe that work is beginning to show not only in our financial results, but also in the strategic direction of the company. As we move into the next phase, we've also strengthened our leadership team with several key appointments. We're pleased to welcome Judah Korman as our Chief Operating Officer, Zack Wilder as our Chief Technology Officer, and to promote Mordy Beyman to Executive Vice President. Together, they bring complementary experience in operations, technology, and product development.

We believe having the right leadership team is just as important as having the right strategy. Each of these individuals will play an important role as we execute our vision of building a technology-driven insurance company. It's already in play in a big way. At the same time, we've remained disciplined and are managing our insurance operations. Following last year's portfolio realignment, we're operating as a far more focused and efficient organization. Importantly, while we've streamlined the business through the divestiture of non-core operations, we continued to deliver organic growth within our retained insurance operations during the quarter. We believe that demonstrates the strength of our core insurance platform and validates the strategic actions we've taken over the past year. That discipline is reflected in the results we've reported today.

We've reduced operating expenses by approximately 28% year-over-year, improved our net loss by approximately 26%, continued to strengthen our overall cost structure. While there's still work to do, we believe these results demonstrate that the actions we've taken over the past year are delivering meaningful improvements and creating a stronger foundation for future growth. At the same time, we've continued investing in what we believe is the next phase of Reliance growth through the development of our proprietary AI platform. During the second quarter, we achieved an important milestone in that effort with the successful development and launch of our secure browser automation technology, representing an important step in executing our long-term strategy. For us, artificial intelligence isn't just about chasing the latest trends. It's about solving real business problems.

Every day, insurance professionals spend hours navigating carrier websites, processing transactions, and completing repetitive administrative tasks. Those are exactly the kinds of workflow-intensive processes where we believe intelligent automation can improve efficiency, consistency, and customer service. It's already being done. One of our biggest advantages is that we are developing this technology inside our own insurance business. That gives us the opportunity to test it, improve it, and validate it using real-world workflows every day. We believe that what makes the platform stronger while also delivering immediate operational benefits across our own organization. As Reliance continues to enhance the proprietary AI platform, management believes the technology has the potential to strengthen the company's insurance operations, improve operating efficiency, and create new long-term commercialization opportunities.

By combining its deep insurance industry expertise with innovative AI capabilities, the company believes it is well-positioned to build a scalable technology platform that complements its core business, diversifies future revenue opportunities, and creates long-term shareholder value. It's important to emphasize that our insurance business remains the foundation of Reliance Global Group. Rather than viewing insurance and technology as separate businesses, we see them as highly complementary. Our insurance platform gives us the opportunity to develop technology in a real operating environment, while our technology has the potential to make that business stronger and create new opportunities over time. Looking ahead, our priorities remain straightforward. We'll continue enhancing our AI platform, expanding its deployment across our organization, evaluating commercialization opportunities, and maintaining the disciplined approach that has strengthened our business over the past year.

As we execute our strategy, we'll continue evaluating opportunities that leverage our technology capabilities, strengthening our existing business, and support sustainable long-term growth. We believe this disciplined approach positions us to create additional long-term value to our shareholders. When I look at Reliance today, excuse me, I see a company that's much different than it was a year ago. We've built a stronger operating foundation, assembled an outstanding leadership team, and begun executing at what we believe is an exciting long-term growth strategy. We're still early in that journey, but we're encouraged by our progress. Actually, we're very excited by our progress and excited about opportunities ahead. With that, let me turn the call over to our Chief Financial Officer, Joel Markovits, who will review our financial results.

Thank you, Ezra, and good afternoon, everyone. It's my pleasure to review our consolidated financial results for the second quarter ended June 30th, 2026. Unless otherwise noted, all figures discussed are approximate. Beginning with the balance sheet, as of June 30th, we reported $1.8 million of combined cash and restricted cash, $4.8 million of unrestricted cash, working capital of $1.2 million, and stockholders' equity of $6.6 million. Turning to our operating results. Commission income for the quarter was $2.1 million, compared with $3.1 million in the prior year quarter. As we've discussed previously, the decline primarily reflects our portfolio realignment and the divestiture of certain non-core operations, partially offset by continued organic growth within certain of our retained insurance businesses. Commission expense declined to $0.8 million from $1 million, consistent with the lower commission expense associated with those divested operations.

Salaries and wages decreased to $1.6 million from $2.6 million, reflecting lower personnel costs following the divestitures, together with reduced non-cash share-based compensation expense. General and administrative expenses declined to $1.2 million compared to $1.5 million in the prior year quarter. This improvement reflects the benefits of our one-firm operating model and continued cost discipline. The year-over-year comparison also reflects Scale51 related initiatives in 2026 and acquisition-related activities in 2025. As a result of these efforts, net loss attributable to Reliance Global Group improved to $2 million compared with $2.7 million in the second quarter of last year. Improvement was primarily driven by continued operating efficiencies, lower non-cash share-based comp, and reduced interest expense. Adjusted EBITDA, a non-GAAP financial measure, was a loss of $1.1 million, compared with a loss of $0.4 million in the prior year quarter.

The year-over-year change primarily reflects lower non-GAAP adjustments in 2026, driven by significantly lower non-cash share-based compensation expense. Together with lower interest expense and depreciation and amortization, these factors were partially offset by the improvement in our GAAP net loss. Overall, we are encouraged by the progress we made during the quarter. While our reported revenue reflects the impact of our strategic portfolio realignment, our results demonstrate continued expense discipline, improved profitability, and ongoing investment in initiatives that we believe will support the company's long-term growth. Operator, we are now happy to open the lines for any questions.

Certainly. Everyone at this time will be conducting a question-and-answer session. If you have any questions or comments, please press star one on your phone at this time. We do ask that while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. Thank you. Your first question is coming from Nicole Kaufman from BlackRidge Capital. Your line is live.

Hi, gentlemen. Thank you guys for taking my questions, and congratulations on the great quarter. You talked a lot about your AI platform, and it sounds very exciting. Can you talk about the next major milestones we can expect for the platform over the next 6-12 months?

I tell you the truth, it's Ezra Beyman. It's hard to contain my excitement. What's going on in our office almost on a daily basis, Zack Wilder, our new CTO, who has very deep experience in AI, we're having moon launches every few days, things I couldn't believe could happen. We watch real-time things that used to take humans some time to get done. We watch them actually being done as we watch them. No human intervention whatsoever. Incredible.

We're really, really excited. There's some things we're not talking about yet, but it's mind-boggling. I wouldn't believe it myself when I start seeing them. Really, I just couldn't contain. I called one of my board members the other day after I witnessed something. I said, "This is mind-boggling." I'm just telling you, AI is, it's scary. I hope us humans still have a place to be. It is exciting when it comes to business.

Yes, I agree that. I appreciate that. When do you expect the AI platform to begin generating revenue?

I would say six to nine months, I think we should be okay with that. That's pretty good chance that may be sooner. I will say expense reduction is already kicking in because we have functions that are being done by AI that we no longer necessarily need people doing it. Those people could be focusing on bringing in revenue instead of doing mundane tasks. Either way, both ways it's good. Reducing expenses, which is already happening in process, and in revenue. It's really exciting.

I appreciate that insight. If I have any other questions, I'll jump back in the queue. Thanks again for answering my questions today.

Absolutely. Thank you very much for calling.

Thank you. Once again, everyone, if you have any questions or comments, please press star then one on your phone. Please hold while we poll for questions. Thank you. That concludes our Q&A session. I will now hand the conference back to management for closing remarks. Please go ahead.

Thank you. Before we conclude today's call, I'd like to leave you with a few key takeaways. We continue to execute our strategic priorities while maintaining disciplined expense management and improving our financial performance. We made meaningful progress advancing our proprietary AI platform and integrating AI capabilities into our insurance operations to enhance productivity, efficiency, and customer care. We remain focused on disciplined capital allocation, operational execution, and prudent investment in initiatives that support our long-term strategy.

As we look ahead, we believe the actions we've taken to streamline our operations, strengthen our financial discipline, and advance our AI capabilities position the company to pursue sustainable long-term growth. On behalf of everyone at Reliance Global Group, thank you for joining us today and for your continued interest. We appreciate your support and look forward to updating you on our progress next quarter. Thank you and have a great day.

Thank you. Everyone, this concludes today's event. You may now disconnect and have a wonderful day. Thank you for your participation.

Greetings, and welcome to the Reliance Global Group 2026 first quarter business update call. I will now turn the conference over to your host, Mr. Ted Ayvas, Investor Relations. Sir, the floor is yours.

Thanks, Ali. Good afternoon, thank you for joining Reliance Global Group's 2026 1st quarter financial results and business update conference call. On the call with us today are Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group; Joel Markovits, Chief Financial Officer of Reliance; Moshe Fishman, Senior Vice President of Strategic Ventures for Reliance. Earlier today, the company announced its operating results for the quarter ended March 31st, 2026, the press release is posted on the company's website, www.relianceglobalgroup.com. In addition, the company will be filing its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission today, which can also be accessed on the company's website as well as the SEC's website at www.sec.gov.

If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020. Before Mr. Beyman reviews the company's operating results for the quarter ended March 31, 2026, we would like to remind everyone that this conference call may contain forward-looking statements. All statements other than statements of historical facts contained in the conference call, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations are forward-looking statements. The words anticipate, estimate, expect, project, plan, seek, intend, believe, may, might, will, should, could, likely, continue, design, and the negative of such terms and other words and terms of similar expressions are intended to identify forward-looking statements.

These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to several risks, uncertainties, and assumptions as described in the company's Form 10-K filed with the U.S. Securities and Exchange Commission. Because of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in the conference call may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements.

In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The company disclaims any duty to update any of these forward-looking statements. All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made on this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. Having said that, I'd like to turn the call over to Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group. Ezra?

Thank you very much, Ted, and good afternoon, everyone. The first quarter represents an important step as we continue executing the strategy we established over the past year. During that time, we focused on simplifying the business, strengthening the balance sheet, and creating a clear framework for long-term growth. We are now building on that foundation and advancing into a more active phase of execution. Our business model is built around two complementary segments. The first is our insurance segment and InsurTech platform, which provides recurring revenue, established carrier and agent relationships, and a scalable distribution infrastructure supported by our technology platforms. This business not only generates consistent operating cash flow, but also provide visibility into market trends, customer behavior, and product demand, all of which support our broader strategic initiatives.

The second is our strategic venture segment, which is anchored by EZRA International Group and our Scale51 model, which together form the foundation of our investment strategy. EZRA International serves as the platform through which we identify and evaluate opportunities across technology and life sciences. While Scale51 provides the operating discipline we use to deploy capital in stages and scale those businesses over time through an ownership-driven approach. This combination allows us to maintain a stable operating base while selectively allocating capital into opportunities where we identify a high potential for growth and value over time. Within our insurance operations, we continue to operate a more streamlined and efficient business following the portfolio realignment completed in 2025. Those actions reduced complexity, improved cost structure, and positioned the platform for more scalable growth. RELI Exchange remains a central component of this strategy.

It provides a technology-enabled distribution network connecting independent agents with carrier markets while allowing us to expand our tech reach without a corresponding increase in fixed costs. During the quarter, we continued to enhance the platform with the rollout of RELI Exchange 2.0, which is designed to improve scalability, streamline agent onboarding, and increase overall operating efficiency. These enhancements are intended to support continued growth across the network while improving productivity and reducing friction within the platform. We continue to see a steady engagement across RELI Exchange and believe it positions us well to drive organic growth over time. In addition, 5MinuteInsure.com continues to support direct-to-consumer acquisition, complementing our agency network and expanding our distribution capabilities. Taken together, these operations provide a stable foundation that supports both current performance and our broader strategic initiatives.

Turning to EZRA International Group and our Scale51 model, this is where we are beginning to see the strategy translate into execution. EZRA International serves as the platform through which we identify and evaluate opportunities across technology and life sciences, while Scale51 provides the framework we use to structure investments, deploy capital progressively, and expand our ownership as businesses demonstrate tangible progress. Our focus is on identifying emerging technologies early, deploying capital in a disciplined manner, and increasing ownership at those businesses as those businesses achieve defined technical and commercial milestones. This approach allows us to align capital deployment with performance, manage risk more effectively, and build positions in companies that demonstrate measurable progress. A clear example of the EZRA strategy in action is our investment in Enquantum.

Enquantum is developing post-quantum cybersecurity technology designed to address what we believe is a significant long-term challenge in data security. As quantum computing advances, existing encryption methods may become vulnerable, creating the need for a quantum-resistant solutions across industries. Through our milestone-based investment structure to date, we have increased our ownership in Enquantum to approximately 29%, with the increase tied directly to the achievement of defined technical and commercial milestones. This reflects the performance driven investment model we are applying across Scale51, where additional capital is committed as execution is demonstrated. We have supercharged the existing top-tier Enquantum team with commercialization experts that serve to further enhance the reach of the post-quantum cryptography solutions that they provide their customers.

More recently, we expanded into a new vertical with the launch of LifeSci Global Group, led by highly qualified biotech professionals David Turner and Scott Korman. Life sciences represent an area of significant long-term opportunity, particularly as advancements in data, diagnostics, and artificial intelligence continue to reshape how diseases are detected, monitored, and treated. We are seeing increasing demand for early detection, more precise diagnostics, and less invasive testing methods, all of which are driving innovation across the healthcare ecosystem. These trends are creating opportunities for emerging platforms with differentiated technologies to scale over time. LifeSci provides a dedicated platform through which we can pursue these opportunities using the same stage investment approach, where they focus on expanding our participation in businesses as they progress both technically and commercially. LifeSci Global marked its initial transaction with the completion of a strategic investment into Innervate.

into Innervate Radiopharmaceuticals, a developer of positron imaging, positron emission tomography imaging, and therapeutic radiopharmaceuticals, focused initially on neuroblastoma and broader future applications in cardiovascular and neurodegenerative diseases. We also continue to evaluate and support additional opportunities within its expanding pipeline. Opportunities like this align with our focus on emerging technologies that address meaningful clinical needs, particularly in areas where innovation can improve outcomes and expand over time into broader indications. The investment into Innervate reflects the type of differentiated platforms we are targeting within the life sciences sector using our phased capital deployment strategy. In summary, we are building a business with two complementary drivers of value: a stable, cash-generating insurance platform and a scalable acquisition plus investment strategy focused on innovation and long-term growth. What is important is how these two components work together.

Our insurance platform provides a consistent operating foundation and financial flexibility, while our investment strategy allows us to deploy capital into emerging opportunities where we believe we can build larger ownership stakes as those businesses gain traction. As we look ahead, our focus is on continuing to execute this model in a disciplined and repetitive way, broadening our opportunity set, advancing current investments, and increasing exposure to platforms that demonstrate meaningful progress. While we are still in the early stages of this strategy, we believe the foundation we have established, combined with progress we are beginning to see across multiple verticals, position us well to create long-term value for our shareholders. I would like now to turn the call over to Joel Markovits, Chief Financial Officer of Reliance Global, to review the Q1 2026 financial results. Joel?

Thank you very much, Ezra, and good afternoon, everyone. It's my absolute pleasure to review our key financial highlights for the quarter ended March 31, 2026. All figures discussed are approximate. Starting with our consolidated balance sheet, we continued to strengthen our financial position during the quarter. At March 31, 2026, compared to December 31, 2025, unrestricted cash increased to $2.3 million compared with $1.3 million. Combined cash, including restricted cash, increased to $3.2 million versus $2.7 million. Working capital improved to $2.6 million compared with $1.9 million, and stockholders' equity increased to $7.4 million compared with $6.4 million. These improvements reflect our continued focus on maintaining financial flexibility while supporting the execution of our strategic initiatives.

Turning to consolidated financial results. Commission income for the quarter was $3.8 million compared with $4.2 million in the prior year period. The decrease was primarily due to the 2025 divestiture of certain non-core operations, and the decline was partially offset by 11% organic revenue growth from the company's retained businesses. Commission expense was $1.6 million compared with $1.5 million for the same period in 2025. The increase primarily reflects higher commission rates driven by general market conditions as well as increased commission expense consistent with 11% organic revenue growth in the retained businesses. Salaries and wages were $1.6 million for the quarter ending March 31st, 2026, compared with $2.2 million in the prior year period.

The decrease was primarily attributable to lower stock-based compensation expense as well as reduced personnel costs following the divestiture of the non-core operations during 2025. General and administrative expenses were $1.4 million in the first quarter of 2026, compared with one and a half million dollars in the prior year period. The decrease primarily reflects continued cost optimization efforts and lower non-cash equity compensation expense. Net loss improved to $1.4 million for the first quarter of 2026, compared with $1.7 million for the same period in 2025. The improvement was primarily attributable to lower operating expenses and reduced interest expense. Our EBITDA, our AEBITDA, a non-GAAP financial measure, was negative $0.4 million compared with positive EBITDA of $0.1 million for the same period in 2025.

The decrease primarily reflects lower stock-based compensation add-backs in 2026 compared to the prior year period, partially offset by improved operating performance, including lower salaries and wages and reduced general and administrative expenses. Turning briefly to segment performance. Our strategic ventures segment net loss of $0.4 million primarily affects costs associated with the launch and ongoing development of EZRA International Group and the Scale51 operating model, as well as equity investment loss related to our investment in Enquantum. Our insurance segment net income improved to $0.7 million for the first quarter of 2026 compared with $0.5 million for the same period in 2025. The improvement was driven by lower operating expenses, continued efficiencies from the company's One-Firm initiative, and 11% year-over-year revenue growth from the company's retained businesses.

Overall, our financial results reflect a company that is more streamlined, more focused, and operating from a stronger balance sheet while continuing to invest selectively in growth initiatives aligned with our long-term strategy. With that, I'll turn it back to the operator for questions.

Thank you. Ladies and gentlemen, at this time, we'll be conducting our question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. As for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Thank you. Our first question is coming from Chaim Englander, who is an investor. Your line is live.

Hello. Hi, you hear me?

Yes, we do.

Yeah, hi, Ezra. Okay. Congratulations on all your milestones and you keep having much success. I just wanted to compliment you guys. I know you went into the Zcash. I don't know if you're following it, but it was almost $600 last night. Do you plan on doing any more?

Yeah, we did observe the growth. Yeah, that's actually one of the is probably the best performing crypto around. You know, our main strategy.

Yeah, that's a great story.

Right now. Yeah, right. It is a great story. Right now we feel comfortable we did the Zcash, and we did it, you know, smartly, not recklessly, not deploying that much, but we are in the positive now with it actually. For now, we know we're looking to see if we should do further or we're focusing more on the bread and butter businesses both in insurance and the tech. You know, we will look at it, but we're, thank God, happy that we made the Zcash choice.

I didn't go through your whole 10-K. Is it listed as your asset there?

[crosstalk] Yes, I believe it is. Joe, you can say where is it listed as an asset?

Of course, yeah, Chaim. Yeah, it would be under the heading digital assets on the balance sheet.

Okay. Just make sure they pick it up out there.

Oh, yeah. Oh, yeah.

one of your great assets that you have. Okay. [crosstalk]

Thank you. Appreciate that. Thank you very much.

Thank you. Once again, ladies and gentlemen, if you do have any questions, please press star 1 on your telephone keypad. Our next question is coming from Nicole Kaufman with Blackridge Capital. Your line is live.

Good afternoon, gentlemen. Congratulations on the progress this quarter, and thank you for taking my questions. My first question, would you please provide some additional color on Enquantum and what the milestones to continue increasing your ownership position towards 51% are based on? And more broadly, how should investors think about the pace of deployment under the Scale51 model going forward towards additional acquisitions or investments?

Okay. I think Moshe Fishman is best equipped to answer that, those questions.

Thank you.

Yes. Hello, everybody. Moshe Fishman here. I'll tell you with the milestones, while they're not publicly announced, they all have underlying similarities that the equity for Ezra is designed to increase as the company risks decrease. That's really we wanna have a bigger piece and not continue funding until we see any risk profile look healthier. That's really with every young company. As it matures, the risks go down, and that's purposely designed in that manner. As well as additional acquisitions, investments into additional companies. We have, we continue to review many companies that are looking to be acquired or invested by Ezra.

We are looking at many aspects of these potential companies, and we're quite selective to partner with a company that we feel our combined skill set and the from our team, combined with the current company leadership, is going to create tremendous value and for our shareholders. That's really the front and center, looking at the big picture of trying to create value for the shareholders.

Thank you. Yeah, I appreciate that. You guys mentioned approximately 11% organic revenue growth from the retained insurance operations despite the portfolio realignment. Could you discuss what is driving that growth and how you see the insurance platform contributing to the company's broader strategy going forward?

Absolutely. I'll handle that. The truth is, we're very proud to say that, you know, we bought RELI Exchange, it was originally Barra & Associates, in 2022. It's about 4 years now. We've pretty much, over the last year or two, perfected the system of getting new agents. Remember when we started, when we acquired that business, it had about 60-something agents. We're now over 300, and the system's getting better and stronger even, you know, exponentially somewhat. We are really, I think I could say this 'cause no secret, everyone in the world is using AI to better things. We actually we're, you know, in serious discussions with some real AI experts, some of which we have in-house, to really supercharge that business. Really. In other words, that's we're just getting if the system works.

You know, with the agents, they bring business. We give them 5MinuteInsure, strong support. They're able to quote and save tremendous amount of time not having to go back and forth, getting quotes from carriers. Literally in five minutes, they have it all in front of them. The system works. We're getting compliments. We're giving them good back office support. As AI improves, less back office support is needed. It's really ripe for super growth on that, and we're in the midst of that. We look forward to even showing much bigger than 11% increases. It is going the right direction, and we're proud of that. Now with different things going on in AI and technology and our also our stronger as we grow, we're getting stronger and better connections with the carriers, specifically meaning we get better commissions, better service.

They're happy because we're spread also geographically. We're not just in one location, the carriers like that too. We're looking forward to someone asking that question next quarter or in the next, in a few quarters and even getting a stronger response. We're on it, and it's working. The old saying, if it ain't broke, don't fix it, just improve it. That's what we're doing.

Yeah. Well, thank you. I look forward to seeing that. My last question, can you elaborate on the strategic rationale behind launching LifeSci Global Group LLC and how you evaluate opportunities like Innervate? Like, what characteristics are you looking for when considering additional life sciences investments?

As you probably know, life science investments, you know, very often at very early stages, you know, that's what they remain, early stages. In the life science field where you need FDA approval and, you know, of the like, we're really focusing more on companies that already have somewhat of a proven performance. In fact, the first one, Innervate, that's already after phase III testing. It's already clinically been tested and proven. It works. It actually works. It's not hypothetical anymore. Now as we get closer to FDA approval, but it's really just going through the motions because it already works, it's really exciting. That's one thing we look for. We're not looking for very early stage. We wanna see some proven performance. Another component in the biotech sector is we look for the team.

The team, the people are, you know. That's one thing, even with modern technology and AI and everything else, you need people. You need good people. That comes with a very good team. I mean, as you know, it says that Scott Korman's been a board member with us for six years. He's an expert. He's actually, him and his partner, David Turner, have several, you know, successful exits. This is probably the most important. They know it, they know what to do, where to focus on. They've, you know, made, you know, significant dollar and cent exits. That's what we're looking for. It's a combination of better than just early stage, good team, and that it makes sense, common sense.

It happens to be helping the world too, in this case, you know, curing a rare child's disease, which is devastating. This would be a beautiful thing to literally help the world. Thank you very much.

Well, I appreciate that. Yes, I appreciate the clarity on my questions, and if I have any others, I'll jump back in the queue. Thank you very much.

Great. Thanks. Thanks very much.

Thank you. We currently have no further questions in the queue at that time. If there will be any final questions, please indicate so now by pressing star one. Okay, as there are no further questions at this time, I'd like to turn the call back over to management for any closing remarks.

Thank you very much. Before we conclude today's call, I'd like to briefly highlight a few key takeaways from the quarter. First, we continue to strengthen our balance sheet with meaningful improvements in cash, working capital, and stockholders' equity, providing us with increased financial flexibility. Second, the benefits of the portfolio management completed during 2025 are becoming increasingly evident as we continue operating with a more streamlined and efficient structure that is better aligned with our long-term strategic priorities. Third, our insurance segment and InsurTech platform continue to provide a stable operational and financial foundation for the business, generating recurring revenues and supporting investment and future growth opportunities. Finally, we are continuing to execute on our strategic ventures strategy through EZRA International Group and Scale51 operating model, advancing current investments while expanding our pipeline in a disciplined and selective manner.

As we look ahead, our focus remains on maintaining this disciplined approach while continuing to execute across both our operating platforms and strategic venture initiatives. We appreciate your time today and your continued interest in Reliance Global Group. We look forward to updating you again next quarter. In the meantime, on behalf of Ezra and the entire Reliance team, thank you and have a great day.

Thank you. Ladies and gentlemen, this does conclude today's call. You may disconnect your lines at this time, and we thank you for your participation.

Greetings. Welcome to the Reliance Global Group Fourth Quarter Business Update conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Ted Ayvas, Investor Relations. Ted, you may begin.

Thanks, Paul. Good afternoon, and thank you for joining Reliance Global Group's 2025 fourth quarter and year-end financial results and business update conference call. On the call with us today are Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group, and Joel Markovits, Chief Financial Officer of Reliance. Earlier today, the company announced its operating results for the quarter ended December 31, 2025, and the press release is posted on the company's website, www.relianceglobalgroup.com. In addition, the company will be filing its annual report on Form 10-K with the U.S. Securities and Exchange Commission today, which can also be accessed on the company's website as well as the SEC's website, www.sec.gov. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020.

Before Mr. Ezra Beyman reviews the company's operating results for the quarter ended December 31st, 2025. We would like to remind everyone that this conference call may contain forward-looking statements. All statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations are forward-looking statements. The words anticipate, estimate, expect, project, plan, seek, intend, believe, may, might, will, should, could, likely, continue, design, and the negative of such terms and other words and terms of similar expression are intended to identify forward-looking statements. These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, strategy, short-term and long-term business operations and objectives, and financial needs.

These forward-looking statements are subject to several risks, uncertainties, and assumptions as described in the company's Form 10-K filed with the U.S. Securities and Exchange Commission. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in the conference call may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The company disclaims any duty to update any of these forward-looking statements.

All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made on this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. Having said that, I would now like to turn the call over to Mr. Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group. Ezra?

Thanks, Ted. Good afternoon, and thank you to everyone for joining us today. When I think about 2025, what stand out most is the progress we've made reshaping the company for the future. Over the past year, we focused on strengthening the foundation of the business while beginning to execute on a broader strategy designed to expand Reliance beyond its traditional insurance roots and into a technology-driven growth platform. In simple terms, our strategy is built around two complementary pillars. The first is our insurance and insurtech platform, which provides recurring revenue, strong industry relationships, and a stable operational foundation. The second is Ezra International Group and the Scale 51 model, which allows us to identify innovative technology companies and build meaningful ownership positions as those businesses grow and scale.

Together, these pillars are designed to give Reliance both operating stability and exposure to emerging technology opportunities that we believe can create long-term value. At the center of that strategy is the Scale 51 operating model, which operates within our EZRA International Group platform. Scale 51 is designed to identify innovative technology companies, acquire meaningful ownership positions, and actively support their growth as they scale into global markets. By leveraging our public company platform, operational expertise, and strategic relationships, we aim to help promising technologies move from early innovation to scalable commercial businesses. Through this model, we are targeting sectors where innovation and long-term growth opportunities are accelerating, including cybersecurity, artificial intelligence, fintech, and digital health. While Scale 51 represents an important expansion of our strategy, it is built on a business that continues to generate stable operating performance.

Our insurance and insurtech operations serve as the operational backbone of the company, generating recurring revenue while supporting our long-term initiatives. In 2025, these operations generated more than $12 million in commission income, demonstrating the strength of the platform we have built. A key driver of our platform is RELI Exchange, our technology-enabled distribution network that connects independent insurance agencies with carrier markets and operational tools that help them grow their businesses. We saw strong evidence of that growth during the year with personal lines, property, and casualty premiums generating through RELI Exchange increasing approximately 36% year-over-year, and policies written during the most recent health insurance open enrollment season increasing approximately 72%.

Since acquiring RELI Exchange in 2022, our partner network has expanded from roughly 65 agencies to approximately 250 today, significantly increasing our distribution reach and supporting continued organic growth. At the same time, we took several steps during the year to strengthen our balance sheet and simplify our operating structure. As part of this effort, we monetized several non-core operations to sharpen our strategic focus and redeploy capital toward high-growth opportunities. This included the sale of Fortman Insurance Services for $5 million in cash and the sale of Employee Benefits Solutions and U.S. Benefits Alliance. While these businesses had been part of our portfolio for several years, we determined that redeploying the capital and management focus toward RELI Exchange and our technology initiatives through EZRA International Group better aligned with our long-term strategy.

These actions helped simplify the organization, reduce operational complexity, and appreciably improve financial flexibility. With that foundation in place, we began executing on the Scale 51 strategy through several initial transactions that illustrate the type of opportunities we intend to pursue over time. One example is our investment in Enquantum, a company developing next-generation post-quantum encryption technology designed to protect critical digital infrastructure as quantum computing advances. Quantum computing has the potential to fundamentally change cybersecurity. Many of the encryption systems currently protecting financial networks, cloud infrastructure, telecommunication systems, government data, and other critical infrastructure rely on mathematical problems that today's computers cannot easily solve. However, sufficiently advanced quantum computers could eventually break many of these existing cryptographic systems, creating what many experts view as one of the most significant long-term cybersecurity challenges facing the digital economy. Governments and industry are already preparing for this transition.

New post-quantum encryption standards are being developed, and organizations are beginning to evaluate how they will migrate their systems to quantum-resistant cryptography. Analysts expect this transition to require large-scale upgrades across financial systems, cloud infrastructure, telecommunications networks, and government systems over the coming decade. Through our investment in Enquantum, we believe Reliance is positioning itself to participate in this emerging cybersecurity opportunity. Importantly, our agreement establishes a milestone-based pathway toward majority ownership as the company continues to advance its technology and expand its commercial activities. We also announced an agreement to acquire a majority stake in Scentech Medical , an artificial intelligence diagnostic company developing non-invasive breath analysis technology designed to detect disease-related biomarkers earlier than traditional testing methods. Early detection remains one of the most important challenges in healthcare, particularly for serious diseases where earlier diagnosis can significantly improve treatment outcomes.

Advances in artificial intelligence and biomarker analysis are creating new opportunities to identify disease signatures using non-invasive diagnostic tools. Scentech is developing technology that combines AI-driven analytics with breath analysis to help identify disease indicators earlier and more efficiently. If successfully developed and commercialized, technology like this could help physicians detect certain diseases sooner while reducing the need for more invasive testing procedures. Through this transition, Reliance will acquire a majority ownership position, allowing us to participate in the potential growth of this emerging diagnostic platform as it continues to advance its technology and commercial commitment. Taken together, these transactions represent the initial steps in executing our Scale 51 strategy within the EZRA International Group platform, which is focused on identifying innovative technologies and building meaningful ownership positions in companies operating in high-growth sectors such as cybersecurity, artificial intelligence, and digital health.

As part of this strategic evolution, we also transitioned our NASDAQ ticker symbol from RELY to EZRA, aligning the company's public identity with the broader vision we are building through EZRA International Group to develop a portfolio of technology-driven businesses that can scale globally and create long-term value for our shareholders. When you step back and look at the bigger picture, Reliance is evolving into something broader than a traditional insurance company. Our insurance and insurtech platform continues to provide a stable operating base, while EZRA International Group and the Scale 51 strategy expand our reach into emerging technology sectors where innovation and long-term growth opportunities are accelerating. By combining the stability of our insurance platform with targeted ownership in an innovative technology companies, we believe we are building a model that can participate in both recurring operating growth and long-term value creation from emerging technologies.

We are still in the early stages of executing this strategy, but the progress we made during 2025 established an important foundation for what we believe can be an exciting next chapter for the company. I would like to now turn the call over to Joel Markovits, Chief Financial Officer of Reliance Global, to review the 2025 financial results. Joel?

Thank you very much, Ezra, and good afternoon, everyone. I appreciate you joining today's calls. It will be my pleasure to walk through some of our key financial highlights for the year ended December 31st, 2025. Unless otherwise noted, all figures discussed are approximate. Our financial priorities during 2025 were centered on strengthening our balance sheet, improving liquidity, and positioning the company for disciplined long-term growth. As Ezra mentioned earlier, 2025 was an important transition year for us. During the year, we executed a portfolio realignment through the asset sales of our subsidiaries, Fortman Insurance Services, Employee Benefits Solutions, and U.S. Benefits Alliance. These transactions allowed us to reduce debt, strengthen our balance sheet, and simplify our operating structure as we reposition the business to support our Scale 51 technology growth strategy.

Importantly, our insurance brokerage and insurtech platforms continue to provide a stable operating foundation, which we believe positions the company well as we pursue this next phase of growth. Let's begin with a quick look at the balance sheet compared with year-end 2024. Unrestricted cash increased $0.9 million or 250% to $1.3 million at December 31st, 2025, compared with $0.4 million a year ago. Working capital improved by $1.5 million or 351% to $1.9 million. Our stockholders' equity increased $3.4 million or 114% to $6.4 million. These improvements reflect our continued focus on strengthening our financial position and maintaining the flexibility needed to support our future growth initiatives.

Turning to the income statement, commission income totaled $12.4 million for the year ended December 31st, 2025, compared with $14.1 million in 2024. The decrease primarily reflects our strategic portfolio realignment during the year with the divestitures of subsidiaries previously mentioned. Commission expense was $4.6 million compared with $4.2 million in 2024. The increase primarily reflects higher commissions associated with increased sales activity within certain of our remaining operations, as well as general market conditions across the insurance sector. Salaries and wages totaled $10.3 million in 2025, compared with $7.2 million in 2024.

The increase primarily reflects non-cash share-based compensation recognized during the year, which aligns management incentives with long-term shareholder value, partially offset by the elimination of salaries associated with the divested subsidiaries pursuant to our portfolio realignment. General and administrative expenses were $4.9 million, compared with $4.2 million in 2024. The increase was largely driven by non-cash equity awards to directors and service providers, aligning incentives with long-term shareholder value, offset by operational efficiencies achieved through the company's One-Firm operating model. Net loss improved by $2 million-$7 million, compared with $9.1 million in 2024, primarily reflecting gains from our portfolio realignment transactions, as well as the absence of asset impairment charges recorded in the prior year.

Finally, adjusted EBITDA, which is a non-GAAP financial measure, was a loss of $1.6 million compared with a loss of $0.3 million in 2024. The change primarily reflects the revenue fluctuations following the company's portfolio realignment transactions, as well as some higher operating costs and slightly higher commission expense associated with increased sales activity within certain of our remaining operations. Overall, we believe the actions taken during 2025 strengthened our balance sheet, simplified our operating structure, and positioned Reliance to support its next phase of growth. With that, I'll turn the call back over to the operator to open the line for questions.

Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we pull for questions. The first question today is coming from Nicole Calvin from BlackRidge. Nicole, your line is live.

Hello, gentlemen. How are you today?

Okay. How are you?

Well, doing well. Congratulations on the progress, and thank you for taking my questions. My first question is around Scale 51, and you spent some time during the call discussing this initiative, which sounds like an exciting new direction for the company. Can you share a bit more about what investors should expect from the Scale 51 strategy over the next six-12 months?

Okay. I mean, I think in a very short phrase, and I'll elaborate a little more, positive, big, good excitement, which should translate into bottom lines as well. You know, we're focusing on not, you know, very young companies which, you know, have less promise, but companies that somewhat already showed, you know, either close to revenue or accomplishing certain things, and usually yes, close to revenue. You know, we've you know, talked to a lot of companies before we zero in, and we think that we're off to a good start.

You know, both within Enquantum, which we've already closed, and what we're seeing and the excitement about that. It's really more major actually than we realized. During due diligence, we discovered it was better than we thought, and it's getting exciting. We hope to share that as things progress, as milestones are achieved. That's part of our policy and philosophies. We're not just handing over checks. There has to be milestones have to be achieved for us to make payments on investments. So far, that's working, and we look forward to a lot more.

Well, thank you for expanding on that for me.

Mm-hmm.

During the call, you also highlighted the growing need for post-quantum encryption technologies.

Mm-hmm.

Where is Enquantum currently in terms of product development and commercialization, and what kind of timeline might investors expect before the company begins generating revenue?

The truth is, we're excited to say that revenue is quite possible even within the year, even later this year. You know, it's that they've worked for a few years, and we're coming to the point where we have the team that's there, and you know, we have very strategic people on the team. We're working towards revenue, hopefully even later this year. I will say that I'm not sure everyone appreciates what quantum computing is. Quantum computing is what we're talking about as fast as you think you get your computing today. Quantum computing that's being worked on worldwide is about 10,000 times quicker than existing computing. That could tell you why it's so crucial and important to have something that protects the encryptions that you have.

Mm-hmm.

All the codes and things that are today will be meaningless with that type of computing. They could be broken in seconds. This and we're learning more as we you know have this team, and they really know what they were doing in execution. The due diligence team was extremely, overwhelmingly impressed by the team of Enquantum. It's getting exciting, really. It'll translate into dollars and cents soon. It's a really exciting development that's needed for the world, and it'd be good for Reliance and for EZRA International Group.

Yes. Well, thank you. I'm looking forward to that. My last question is around Scentech, the Scentech opportunity, which it sounds really interesting and particularly the non-invasive breath analysis technology. Can you expand on what makes Scentech's approach unique and what you believe differentiates it from other diagnostic technologies currently in development?

Okay. That's great. That's a very good question. I'm excited to give you an answer. As you know, there are, you know, many diseases, and like one of them that actually Scentech is focused on is pancreatic cancer. I'm sure you know that usually when someone gets a diagnosis of pancreatic cancer, it's usually somewhat late. They could be stage four or, you know. It's not a diagnosis that someone wants to hear. Believe it or not, and the technology already exists and has been proven with other diseases, but now, you know, the concept of biomarkers that exist in human breath. There's, of course, not finally proven yet.

That's all in the process, but there's good reason to believe, based on the science and the research that's been done, that this will help in identifying serious diseases as well, like pancreatic cancer. Which means coming in way earlier than previously diagnosed, and which just means whether it means removing the pancreas, whatever has to be done, it's, you know, it's a life, and that's difference, literally.

Mm-hmm.

Makes a difference whether a person literally, you know, with just their breath. Actually, a painless, simple test that could determine, "Hey, we better take care of this without any invasive, you know, major invasive treatment or even worse, people having to go through therapy that who knows if it'll work." This is major, major. Actually our due diligence team as well, a savvy, you know, very savvy people. They were blown away themselves. You know, early detection saves lives. That's a given.

Of course.

Everyone knows that, and that's what we're at. We look forward to being both helping the world, and that's what the word Ezra means, actually, help. We're looking forward to some exciting, you know, financial rewards for it as well. Yeah.

Yeah. Well, that does sound very exciting, and I look forward to the developments associated with that. Well, thank you for taking my questions, and I'll hop back in the queue if I have further questions. I appreciate it.

Thank you very much.

Thank you. Once again, it will be star one on your phone at this time if you wish to ask a question. That's star one if you wish to ask a question. There were no other questions at this time. I would now like to hand the call back to the Reliance Global management team for closing remarks.

Thank you. 2025 represented an important year of progress for Reliance, including a significantly stronger balance sheet with higher cash, improved working capital, increased stockholders' equity, and reduced long-term debt. We streamlined the organization through strategic divestitures and continued One-Firm efficiencies, creating a leaner operating structure. While our insurance brokerage and insurtech platforms remain a stable foundation, generating more than $12 million in commission income during the year. We launched EZRA International Group at Scale 51 and have begun executing through our investment in Enquantum and the intent to acquire a majority stake in Scentech Medical. Overall, we are encouraged by the progress made during the year and remain confident in our ability to continue strengthening the business and delivering long-term value for our shareholders. Thank you for joining us today for our business update.

We look forward to speaking with you again on our next call.

Thank you. This does conclude today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Thank you for standing by. My name is Jordan, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Reliance Global Group Third Quarter Business Update Conference Call. [Operator Instructions] I would now like to turn the conference over to Ted Ayvas of Investor Relations. You may begin.

Thanks, Jordan. Good afternoon, and thank you for joining Reliance Global Group's 2025 Third Quarter Financial Results and Business Update Conference Call. On the call with us today are Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group; and Joel Markovits, Chief Financial Officer at Reliance. Earlier today, the company announced its operating results for the quarter ended September 30, 2025, and the press release is posted on the company's website, www.relianceglobalgroup.com. In addition, the company filed its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission, which can also be accessed on the company's website as well as the SEC's website at www.sec.gov. If you have any questions after the call or would like any additional information about Reliance, please contact Crescendo Communications at (212) 671-1020. Before Mr. Beyman reviews the company's operating results for the quarter ended September 30, 2025, we would like to remind everybody that this conference call may contain forward-looking statements. All statements other than statements of historical facts contained in the call, including statements regarding our future results of operations and financial position, strategy and plans and our expectations for future operations are forward-looking statements. The words anticipate, estimate, expect, project, plan, seek, intend, believe, may, might, will, should, could, likely, design and continue and the negative of such terms and other words and terms of similar expressions are intended to identify forward-looking statements. These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to several risks, uncertainties and assumptions as described in the company's Form 10-K filed with the U.S. Securities and Exchange Commission. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in the call may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance or achievements. In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The company disclaims any duty to update any of these forward-looking statements. All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made on the conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. Having said that, I'd now like to turn the call over to Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group. Ezra?

Thanks, Ted. Good afternoon, and thank you, everyone, for joining us today. The third quarter marked another important step forward in Reliance's transformation and execution of our long-term growth strategy. During the quarter, we completed the $5 million sale of Fortman Insurance Services, a wholly-owned subsidiary that had been part of our portfolio since 2019. The transaction was an important strategic step in our broader effort to streamline operations and focus resources on higher-margin technology-driven business segments. Fortman was a solid, well-managed business that performed well under our ownership. The sale allowed us to realize the value we have created since the acquisition and redeploy that capital toward initiatives with greater long-term scalability and alignment with our strategic priorities. We completed the sale, monetizing the asset at an approximate $3 million gain, which reflects both the operational value built over time and the disciplined execution of our portfolio strategy. The proceeds added capital to our balance sheet, which we immediately used to reduce long-term debt by approximately 50%, significantly improving our financial flexibility, enabling us to focus on scaling higher-margin businesses -- business segments through our RELI Exchange platform. As a result of this and other prudent financial management steps taken, our unrestricted cash rose by approximately 590% or $2.6 million compared to the prior fiscal year-end, while working capital increased by $1.2 million or 284% and equity grew by $3.7 million or 125%. Together, these achievements demonstrate our continued progress in building a stronger, more resilient balance sheet that supports sustainable growth. As expected, the sale of Fortman reduced short-term commission income, reflecting the divestiture of the asset. However, the transaction also eliminated related salary expenses and contributed to a leaner, more efficient operating model. At the same time, we continue to advance our RELI Exchange platform, the cornerstone of our InsurTech growth strategy with the launch of our new client service center, a major enhancement that streamlines how our agency partners operate. The service center provides centralized support for day-to-day policy administration, including coverage changes, mortgage clause updates and renewals through a seamless white label digital interface. This allows partners to focus on expanding their book of business and strengthening client relationships, while our in-house team efficiently manages servicing beyond behind the scenes. By improving scalability, client satisfaction and partner productivity, this initiative is creating a smarter, more efficient operating model that positions Reliance for sustained profitability and long-term value creation. The result is a smarter, more scalable model that improves client satisfaction, increases partner productivity and reinforces our broader One Firm strategy by integrating technology and centralized resources to enhance collaboration, reduce redundancy and drive profitability across the platform. The Board of Directors also approved the company's first special cash dividend of $0.03 per share payable on or about December -- I'm sorry, December 2, 2025, to shareholders of record as of October 30, 2025. This dividend is a meaningful way to reward our shareholders for their continued support as we execute on our growth strategy. Over the past several quarters, we've strengthened both our financial position and operating performance, and this distribution reflects that progress. It also demonstrates the disciplined approach we're taking to capital allocation, balancing reinvestment in our InsurTech and agency operations with returning value directly to shareholders. The dividend aligns with our broader long-term strategy, which includes the diversification of our treasury through our digital asset treasury initiative or DAT, D-A-T. Since launching the DAT earlier this year, we've taken a disciplined approach to building a measured and diversified position in leading digital assets, including Ethereum, Cardano, Bitcoin, XRP and Solana, each selected for its unique strengths from Bitcoin scarcity and institutional adoption to Ethereum's smart contract capabilities, Cardano's sustainability and XRP's enterprise-grade payment functionality and Solana's speed and scalability. Guided by our own Crypto Advisory Board, this initiative represents a forward-looking extension of our capital strategy, balancing innovation with financial responsibility. It's more than a financial program. It's part of our vision to position Reliance at the intersection of InsurTech, AI and blockchain innovation, enhancing our balance sheet, maintaining liquidity to support growth and creating long-term growth for our shareholders. Looking ahead, we believe Reliance is stronger and more focused than ever. Our actions this quarter, streamlining operations, enhancing technology, recording shareholders and positioning the company at the forefront of innovation have created a solid foundation for continued growth. We remain committed to executing with discipline, driving profitability and building long-term value for our shareholders. I would now like to turn the call over to Joel Markovits, Chief Financial Officer of Reliance Global, to review the financial results for the quarter ended September 30, 2025. Joel?

Thank you very much, Ezra, and good afternoon. It's my pleasure to review some of our key financial highlights for the quarter ended September 30, 2025. All figures presented are approximate. I'll start with liquidity. As Ezra mentioned, it was significantly strengthened through prudent financial management and unrestricted cash increased by approximately 590% to $2.6 million, an increase of $2.2 million compared to the prior fiscal year-end. And continuing with the comparison to the 2024 fiscal year-end, working capital increased by $1.2 million or 284% to $1.6 million, and equity increased by $3.7 million or 125% to $6.8 million, reflecting our continued focus on strengthening our balance sheet and maintaining financial flexibility to support our growth initiatives. Switching gears to the income statement. Commission income totaled $2.5 million for this quarter compared to $3.4 million in 2024. The change is primarily driven by the decrease in revenue following the asset sale of Fortman and lower medical commission revenues. Commission expense was $1 million for this quarter compared to $0.9 million in 2024. The slight increase is primarily influenced by market conditions and inherent competitiveness across the insurance sector. Salaries and wages were $3.9 million this quarter versus $1.7 million in 2024. Change is primarily attributed to noncash equity grants, partially offset by decreased payroll pursuant to the Fortman subsidiary asset sale. General and administrative expenses came in at $1.1 million this quarter versus $0.8 million in 2024. The change is primarily attributed to nonemployee, noncash equity payments, partially offset by less costs pursuant to the Fortman sale, One Firm efficiencies and overall leaner operations. We recognized a gain on sale from the Fortman subsidiary transaction of $3 million. Net loss for the quarter was $1.2 million compared to $0.8 million in the prior year. The change is primarily driven by the gain on sale from Fortman, but offset by noncash equity compensation. Adjusted EBITDA loss for the quarter, a non-GAAP metric, was $700,000 compared to a gain of $40,000 in 2024, and the change is primarily attributed to the fluctuations we discussed in the commission accounts. In summary, I'd like to stress that the third quarter reflected exciting progress across several key areas of our business, including: one, a much stronger balance sheet with increased cash, increased working capital, increased equity and significantly reduced fixed debt; two, a leaner and more efficient cost structure resulting from ongoing One Firm integration and operational streamlining; three, our strategic reinvestment in technology and the RELI Exchange platform to enhance scalability and partner productivity; four, the rollout and continued execution of our digital asset treasury strategy, positioning Reliance at the forefront of innovation, InsurTech, AI and blockchain integration; and of course, number five, the declaration of a special cash dividend to our much valued shareholders. We'll now turn it back to the operator to open the lines for questions, comments and feedback. Operator?

[Operator Instructions] Your first question comes from the line of Ellen Litvak from Chorus Capital.

Also congrats on the sale of Fortman and of course, also the improvements in the balance sheet. Obviously, the stock dividend was a positive sign of your confidence on the outlook for the business. My question is, was this a onetime dividend or something you would consider again in the future quarters?

Well, thank you for the compliment. And now, it is certainly something that we are thinking about for the future as well for dividends. And we believe in giving it back to the shareholders. So we are certainly giving it consideration.

[Operator Instructions] It seems that's all the questions we have for today. I'd like to turn the call back over to our moderators for their final closing remarks.

Thank you. On behalf of the entire Reliance team, we thank you very much for joining us today for our Third Quarterly Business Update. We're thrilled about the progress we made, and I remain confident that we will continue to drive sustainable value for our highly valued shareholders, partners and employees. We look forward to our next business update. And until then, we wish you all the very best.

Thank you. That concludes today's meeting. You may now disconnect.

Good day, everyone. Welcome to the Reliance Global Group First Quarter Business Update Conference Call. At this time, all participants have been placed on a listen-only mode. The floor will be open for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Ted Ayvas, Investor Relations. Ted, the floor is yours.

Thanks, Kelly. Good afternoon, and thank you for joining Reliance Global Group's 2025 first quarter financial results and business update conference call. On the call with us today are Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group, and Joel Markovits, Chief Financial Officer of Reliance Global Group. Earlier today, the company announced its operating results for the quarter ended March 31, 2025, and the press release is posted on the company's website, www.relianceglobalgroup.com. In addition, the company will be filing its quarterly report on Form 10-Q with the US Securities and Exchange Commission, which can also be accessed on the company's website as well as the SEC's website at www.sec.gov. If you have any questions after the call and would like any additional information about the company, please contact Crescendo Communications at 212-671-1020. Before Ezra Beyman reviews the company's operating results for the quarter ended March 31, 2025, we would like to remind everyone that this conference call may contain forward-looking statements. All statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements. The words anticipate, estimate, expect, project, plan, seek, intend, believe, may, might, will, should, could, likely, continue, design, and the negative of such terms, in other words, in terms of similar expression, are intended to identify forward-looking statements. These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to several risks, uncertainties, and assumptions, as described in the company's Form 10-K filed with the US Securities and Exchange Commission. Because of these risks, uncertainties, and assumptions, the forward-looking circumstances discussed in this conference call may not occur. Actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The company disclaims any duty to update any of these forward-looking statements. All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made on this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. Having said that, I would now like to turn the call over to Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group.

Thanks, Ted. Good afternoon, and thank you to everyone for joining us today. I'm pleased to report that we are starting off 2025 on a strong note with improved financial results that build on the solid momentum we have established in 2024. We have seen meaningful growth in our organic revenues, which speaks to the progress we are making in expanding our market share. At the same time, we significantly reduced our net loss and delivered an increase in EBITDA. These gains reflect the continued benefits of our disciplined financial approach, the efficiency we have achieved through our streamlined one firm operating model, and the absence of impairment charges that impacted last year's results. Altogether, the momentum we are seeing has strengthened our foundation and positions Reliance Global Group for scalable long-term growth with greater profitability. One of the most exciting developments this quarter is the launch of Relay Auto Leasing, a transformative new service that enables our Relay exchange agency partners to offer vehicle leasing to clients. Any vehicle delivered to any location in the US earns commissions on both the lease and the bundled insurance policy. The service is fully integrated into the agent dashboard, requiring no additional training in Auto Finance. Agents now can guide clients through leasing options during standard policy consultations, whether for new vehicles or replacements after accidents. Clients benefit from competitive pricing, nationwide delivery, and advanced insight into how different vehicles may impact their premiums. This integration deepens client relationships and introduces a powerful recurring revenue stream for our partners. Early feedback from agents has been outstanding, and we believe this innovation further distinguishes Reliance Global Group as the complete solution for independent agencies. We are also nearing completion of the Spatner Associates acquisition, a strategic transaction that will expand our market footprint and enhance our agency network. Spatner brings deep experience in personal and commercial lines along with strong relationships and a proven team of agents. Their integration will add scale, complement our existing capabilities, and create immediate cross-selling opportunities across Reliance Exchange offerings, particularly Quote and Buy and Reliance Auto Leasing. We expect this acquisition to contribute meaningfully to both revenue growth and margin improvement through synergies, and we view it as a significant step toward our InsurTech growth strategy. With these milestones, Relay Auto Leasing, the continued enhancement of our Quote and Buy platform, and the upcoming Spatner Associates integration, we are more confident than ever in our trajectory towards scalable long-term growth. Each initiative adds meaningful dimension to our strategy, expanding services for our agency partners, increasing revenue opportunity, and strengthening our presence across key markets. Relay Auto Leasing introduces a powerful new offering that allows agents to better serve their clients while generating additional income. Our Quote and Buy platform continues to streamline the insurance process through automation and expanded carrier access. Meanwhile, the integration of Spatner Associates is expected to broaden our footprint, complement our capabilities, and create valuable cross-selling opportunities across the platform. Together, these efforts reflect our ongoing commitment to innovation, disciplined growth, and shareholder value. We look forward to building on this momentum as we move through 2025 and beyond. I would like to now turn the call over to Joel Markovits, Chief Financial Officer of Reliance Global Group, to review the financial results for the quarter ended March 31, 2025.

Thank you very much, Ezra, and good afternoon. It will be my pleasure to share with you some of our key financial highlights for the quarter ended March 31, 2025. All figures presented are approximate. Commission income increased by $154,000 or 4% to $4.2 million in Q1 2025 from $4.1 million in Q1 2024. The 4% increase reflects encouraging continued organic growth across our insurance distribution channels. Commission expense increased by $200,000 to $1.5 million in Q1 2025 compared to $1.3 million in Q1 2024. The increase reflects higher payouts to agents in line with the increased revenues. Salaries and wages increased by $400,000 to $2.2 million in Q1 2025 compared to $1.8 million in Q1 2024. The $400,000 increase is primarily due to non-cash equity awards in the amount of $540,000. By removing the impact of these non-cash equity charges, salaries and wages actually decreased quarter over quarter, a testament to cost efficiencies deployed by the company while still being able to grow revenues. General and administrative costs increased by $140,000 to $1.5 million in Q1 2025 compared to $1.4 million in Q1 2024, primarily due to $485,000 of non-cash equity payments to certain of the company's directors and service providers. When removing the impact of these non-cash equity charges, general and administrative costs show an increase quarter over quarter, a reflection of management's disciplined approach to cost controls and the success of our OneFirm business model. Net loss decreased by $3.6 million or 68% to $1.7 million in Q1 2025 versus $5.3 million in Q1 2024. This substantial 68% improvement is a result of no asset impairment charges during our current quarter and the company continuing to remain laser-focused on streamlining its operations, increasing its revenues, and controlling its costs. EBITDA, our adjusted EBITDA metric, a non-GAAP measure by key company performance indicator, improved significantly by 300% in Q1 2025, from a loss of $74,000 in Q1 2024 to a gain of $145,000 in Q1 2025, a $220,000 increase. This marks another quarter of equity gain for the company and demonstrates our continued trend towards sustained and increased profitability. In summary, as mentioned by Ezra, we have gotten off to a very good start in 2025 with exciting organic growth in our revenues, decreasing cash operating costs, and increasing net EBITDA gains. With our scalable operating model, focused on innovation and expansion of our market footprint by organic and acquisitive growth, we remain firmly committed to continuing to build a highly profitable business enterprise that delivers long-lasting value to our employees, investors, and shareholders. We will now turn the call back to the operator to open the line for questions, comments, and or feedback. Operator?

Certainly. The floor is now open for questions. If you have any questions or comments, please press star one on your phone at this time. We ask that while posing your question, you please pick up your handset if listening on a speakerphone to provide optimum sound quality. Please hold a moment while we poll for any questions. Your first question is coming from Nicole Kaufman at Blackridge Capital. Nicole, please post your question. Your line is live.

Good afternoon, gentlemen. Thanks for taking my questions, and congrats on the positive quarter. My first question is related to the Spatner acquisition. So once this is complete, can you share some insights into the key benefits it will bring to Reliance Global Group?

Yeah. Sure. We are excited about that. Well, God willing, it first of all brings us to a very important, you know, significant increase in EBITDA positivity, you know, profitability. Also doubles our revenue, and that does not even take into account the amazing and tremendous cross-selling potential. Remember, they service already 5,000 employees, and we have many insurance products that they have not had access to till now, so we really see that as a tremendous potential as well. Aside from the intrinsic on day one, you know, increase in profitability and revenue. But we are really excited about it.

Well, thank you for that. And then going into adjusted EBITDA, so congrats on achieving positive adjusted EBITDA again. Obviously, this is an important milestone. What were the key drivers behind the positive adjusted EBITDA in the first quarter? And how do you see it trending moving forward?

So I think the, I mean, it is really a multi-approach, not just one. You know, focusing, like Joel mentioned, on the one firm approach, streamlining expenses where we can, and, of course, pay different agencies. Also, you know, cross-selling and offering more selling abilities to both our in-house agents and the downline agents. And we are, of course, focused also on, you know, good old-fashioned, not wasting money, trying to be cost-conscious. We know as time goes on, you see where to spend the money and where not to waste money. A combination of increasing revenue, as you actually show it on the reducing expenses, and we look forward actually with today more and more technology available to in all these areas to improve. You know, we will probably see even more exciting increases.

Well, thank you very much. I appreciate that insight. If I have another question, I'll hop into the queue. Thank you.

Great. Thank you very much.

Once again, if there are any remaining questions or comments, there are no additional questions in queue at this time. I would now like to turn the floor back over to management for any closing remarks.

Thank you. On behalf of Ezra and the entire Reliance Global Group team, we appreciate your participation in today's business update. We are very enthusiastic about the horizon for Reliance Global Group and grateful to you, our valued shareholders and stakeholders, for being with us on this onward journey together. Thank you, and all the very best.

Thank you, everyone. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation.