Q2 2024 Reliance Global Group Inc Earnings Call

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Operator: Good day and welcome to the Reliance Global Group's second quarter business update conference call. At this time, all participants have been placed on a listen-only mode.

Operator: Good day, and welcome to the Reliance Global Group's second quarter business update conference call. At this time, all participants have been placed in a listen-only mode. The floor will be open for questions and comments following the presentation. It is now my pleasure to turn the floor over to your host, Ted Ayvas, Investor Relations at Reliance Global. Sir, the floor is yours.

Good day and welcome to the Reliance Global Group's second quarter business update conference call. At this time all participants have been placed on a listen-only mode. The floor will be open for questions and comments following the presentation. It is now my pleasure to turn the floor over to your host, Ted Ayvas, Investor Relations at Reliance Global. Sir, the floor is yours.

Operator: The floor will be open for questions and comments following the presentation.

Ted Ayvas: It is now my pleasure to turn the floor over to your host, Ted Ayvas, Investor Relations at Reliance Global. Sir, the floor is yours.

Ted Ayvas: Thanks, Paul. Good afternoon, and thank you for joining Reliance Global Group's 2024 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 year ended June 30, 2024. 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 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 and would like additional information about the company, please contact Crescendo Communications at 212-671-1020.

Ted Ayvas: Thanks, Paul. Good afternoon and thank you for joining Reliance Global Group's 2024 second quarter financial results in 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 year ended June 30, 2024. The pressure 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 US 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.

Paul: Thanks, Paul. Good afternoon and thank you for joining Reliance Global Group's 2024 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.

Speaker Change: Earlier today the company announced its operating results for the year ended June 30, 2024. The press release is posted on the company's website www.relianceglobalgroup.com

Speaker Change: In addition, the company filed 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.

Ted Ayvas: If you have any questions asked in the call with, like, digital information about the company, please contact Crescendo Communication at 212-671-1020.

Speaker Change: If you have any questions after the call or would like additional information about the company, please contact Crescendo Communications at 212-671-1020.

Ted Ayvas: Before Mr. Ben and reviews the company's operating results for the quarter ended June 30, 2024, 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 plan, and our expectations for future operations, are forward-looking statements. The word Anticotate estimates, expect, project, plan, seek, intent, and believes may, might, will, should, could, likely continue to design, and the negative of such terms, in other words, in terms of similar expression, are intended to identify forward-looking statements.

Ted Ayvas: Before Mr. Beyman reviews the company's operating results for the quarter ended June 30, 2024, 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 positions, 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 expressions, are intended to identify forward-looking statements.

Speaker Change: Before Mr. Beyman reviews the company's operating results for the quarter ended June 30, 2024, we would like to remind everyone that this conference call may contain forward-looking statements.

Ted Ayvas: 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, result 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 on April 4, 2024. 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 statement.

Speaker Change: All statements other than statements of historical facts contained in the conference call, including statements regarding our future results of operations and financial positions, strategy and plan, and our expectations for future operations, are forward-looking statements.

Speaker Change: The words anticipate, estimate, expect, project, plan, seek, intend, believe, may, might, will, should, could, likely, continued, design, and the negative of such terms, in other words, in terms of similar expressions, are intended to identify forward-looking statements.

Ted Ayvas: 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 on April 4, 2024. Because of these risks and certainties and assumptions, the forward-looking events and circumstances discussed in this conference call may not occur; an actual result could differ materially and adversely from those anticipated or implied in the forward-looking statements.

Speaker Change: 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, result of operations, strategy, short-term and long-term business operations and objectives, and financial needs.

Speaker Change: 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 on April 4, 2024.

Speaker Change: 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.

Ted Ayvas: You should not reply; 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 statement are reasonable, it cannot guarantee future results, levels of activity, performance, or achievements. In addition, neither these nor any person that seems responsibility for the accuracy and completeness of any of these forward-looking statements. The company disclaims any duties 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 in this conference.

Ted Ayvas: 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, levels 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 just claims no 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 in this conference.

Speaker Change: You should not rely upon forward-looking statements as predictions of future events.

Speaker Change: Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels 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.

Speaker Change: 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 in this conference call.

Ted Ayvas: You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. Having said that, I would like to turn the call over to Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group. Ezra, thanks, Ted.

Ezra Beyman: 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. Ezra?

Ted Ayvas: You should evaluate a forward-looking statement 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. Thank you.

Ezra Beyman: Thanks, Ted. Good afternoon, and thank you to everyone for joining us today. We are pleased to report that we attained consistent and sustained revenue levels for the first three and six months of 2024, with revenues of $3.2 million and $7.3 million, respectively, which represents 1% and 3% growth from the same period in the prior year, respectively. Additionally, we have successfully reduced our operating expenses, achieving a 13% efficiency improvement in the second quarter of 2024 compared to the same period in 2023.

Ezra Beyman: Good afternoon, and thank you to everyone for joining us today. We are pleased to report that we attained consistent and sustained revenue levels for the first three and six months of 2024, with revenue of 3.2 million. And 7.3 million, respectively, which represents 1% and 3% growth from the same period in the prior year, respectively. Additionally, we have successfully reduced our operating expenses, achieving a 13% efficiency improvement in the second quarter of 2024, compared to the same period in 2023. Our net loss from continual operations for the second quarter has also improved by 62% from the same period last year.

Ezra Beyman: Thanks, Ted. Good afternoon and thank you to everyone for joining us today.

Speaker Change: We are pleased to report that we attained consistent and sustained revenue levels for the first three and six months of 2024.

Speaker Change: with revenues of $3.2 million and $7.3 million, respectively.

Speaker Change: which represents 1% and 3% growth from the same period in the prior year, respectively. Additionally, we have successfully reduced our operating expenses, achieving a 13% efficiency improvement in the second quarter of 2024 compared to the same period in 2023.

Ezra Beyman: A net loss from continuing operations for the second quarter also improved by 62% from the same period last year. Our key non-gap metric, EBITDA, showed a nominal loss of $178,000, well just under 6% of revenues in the second quarter of 2024.

Speaker Change: A net loss from continual operations for the second quarter has also improved by 62% from the same period last year. Our key non-gap metric, EBITDA,

Ezra Beyman: Our key non-gap metric, A.E. Abbott-Evisa showed a nominal loss of $178,000, well, just under 6% of revenues in the second quarter of 2024. Building on our strong performance in the first quarter, we sustained the momentum of organic growth into the second quarter. We continue to emphasize our foundational, one firm strategy, integrating our nine-owned and upgraded agencies nationwide into one cohesive business unit. The strategy has granted us access to higher commission tiers and created extensive cross-selling opportunities, driving significant revenue growth. A key initiative of the One Firm strategy is cross collaboration. This approach maximizes utilization of our exceptional talent across the organization, promotes enhanced data access and sharing, and segments specialized support services.

Speaker Change: showed a nominal loss of $178,000, well just under 6% of revenues in the second quarter of 2024.

Ezra Beyman: Building on our strong performance in the first quarter, we sustained the momentum of organic growth into the second quarter. We continue to emphasize our foundational One Firm strategy, integrating our nine owned and operated agencies nationwide into one cohesive business unit. This strategy has granted us access to higher commission tiers and created extensive cross-selling opportunities, driving significant revenue growth. A key initiative of the OneFirm strategy is cross-collaboration. This approach maximizes the utilization of our exceptional talent across the organization, promotes enhanced data access and sharing, and segments specialized support services. Additionally, this has allowed the company to consolidate vendor relationships and contracts, reducing overall operating expenses, as demonstrated in our second quarter financial results.

Speaker Change: Building on our strong performance in the first quarter, we sustained the momentum of organic growth into the second quarter. We continue to emphasize our foundational one firm strategy, integrating our nine owned and operated agencies nationwide into one cohesive business unit.

Speaker Change: This strategy has granted us access to higher commission tiers and created extensive cross-selling opportunities driving significant revenue growth.

Speaker Change: A key initiative of the OneFirm strategy is cross-collaboration. This approach maximizes the utilization of our exceptional talent across the organization, promotes enhanced data access and sharing, and segments specialized support services.

Ezra Beyman: Additionally, this has allowed the company to consolidate vendor relationships and contracts, reducing our overall operating expenses, as demonstrated in our second quarter financial results. We also believe that the one firm unified approach will position us to scale rapidly as we continue to seek out and integrate a creative acquisition, such as the Spread News Association acquisition, which we believe will further broaden realized global growth industry and market reach. As one firm continues to gain momentum, we anticipate significant improvements in both our revenue and profitability.

Speaker Change: Additionally, this has allowed the company to consolidate vendor relationships and contracts, reducing overall operating expenses, as demonstrated in our second quarter financial results.

Ezra Beyman: We also believe that the OneFirm unified approach will position us to scale rapidly as we continue to seek out and integrate accretive acquisitions, such as the Sprechner Association acquisition, which we believe will further broaden Reliance Global Group's industry and market reach. As OneFirm continues to gain momentum, we anticipate significant improvements in both our revenue and profitability. Turning to the Spentner acquisition, its anticipated impact is far exceeding our initial expectations. Since announcing our plans, Spentner's BendManage Voluntary Benefit Insurance segment has experienced significant growth, now covering more than 85,000 employees, a substantial jump from the 45,000 covered employees when we initially announced the planned transaction.

Speaker Change: We also believe that the one firm unified approach will position us to scale rapidly as we continue to seek out and integrate accretive acquisitions.

Speaker Change: such as the Sprechner Association acquisition, which we believe will further broaden Reliance Global Group's industry and market reach. As one firm continues to gain momentum, we anticipate significant improvements in both our revenue and profitability.

Ezra Beyman: Turning to the spread near acquisition is a pit anticipated impact as far exceeding our initial expectations. Since announcing our plans, spread news Ben Mann has voluntary benefit and turn segment has experienced significant growth, now covering more than 85,000 employees. A substantial jump from the 45,000 covered employees when we initially announced the plan transaction, integrating spread news expertise and extensive client base into our operations, is expected to significantly enhance our market position, expand our service offerings, and accelerate our growth. By running spread news innovative benefit solutions with our strategic goal, we aim to create more value for our stakeholders and strengths in our competitive edge in the industry.

Speaker Change: Turning to the Sprechner acquisition, its anticipated

Speaker Change: Since announcing our plans, Spentner's BendManage Voluntary Benefit Insurance Segment has experienced significant growth, now covering more than 85,000 employees, a substantial jump from the 45,000 covered employees when we initially announced the plan transactions.

Ezra Beyman: Integrating Spetner's expertise and extensive client base into our operations is expected to significantly enhance our market position, expand our service offerings, and accelerate our growth. By aligning Spetner's innovative benefit solutions with our strategic goals, we aim to create more value for our stakeholders and strengthen our competitive edge in the industry. This acquisition is not just about growth; it's about setting a new standard in our industry and bringing enhanced services to a broader audience. We believe that Spetna's unique voluntary benefits program and extensive market search, MarketBeach, will provide considerable synergistic opportunities once the transaction is completed, particularly in expanding our personal insurance lines through the ReliExchange platform.

Speaker Change: Integrating Spetner's Expertise

Speaker Change: and extensive client base into our operations is expected to significantly enhance our market position.

Speaker Change: expand our service offerings, and accelerate our growth.

Speaker Change: By aligning Spetner's innovative benefit solutions with our strategic goals, we aim to create more value for our stakeholders and strengthen our competitive edge in the industry.

Ezra Beyman: This acquisition is not just about growth; it's about setting a new standard in our industry and bringing enhanced services to a broader audience. We believe that Spentner's unique voluntary benefits program and extensive market search will provide considerable synergistic opportunities once the action is completed, particularly in expanding our personal insurance lines through the Reliance Exchange platform. The fact with this one would be one of the largest in our company's history to date will be transformational and marks a pivotal time for Reliance, according to our projections acquired Spentner will double our annual revenues to approximately 28 million, as well as significantly boost our EBITAH.

Speaker Change: This acquisition is not just about growth, it's about setting a new standard in our industry and bringing enhanced services to a broader audience.

Speaker Change: We believe that Spetna's unique voluntary benefits program and extensive market search

Speaker Change: and MarketBeach will provide considerable synergistic opportunities once the transaction is completed, particularly in expanding our personal insurance lines through the Rely Exchange platform.

Ezra Beyman: This acquisition, which will be one of the largest in our company's history to date, will be transformational and mark a pivotal time for Reliance. According to our projections, acquiring Fentner will double our annual revenues to approximately $28 million, as well as significantly boost our EBITDA. This acquisition is progressing smoothly, and we anticipate the closing of the transaction by the end of 2024.

Speaker Change: This acquisition, which will be one of the largest in our company's history to date, will be transformational and marks a pivotal time for Reliance. According to our projections, acquiring Fentner will double our annual revenues to approximately $28 million, as well as significantly boost our EBITDA.

Ezra Beyman: This acquisition is progressing smoothly, and we anticipate the closing of the transaction by the end of 2024.

Speaker Change: This acquisition is progressing smoothly and we anticipate the closing of the transaction by the end of 2024.

Ezra Beyman: Our mission remains to build a multi-billion dollar, highly profitable business enterprise that delivers substantial and sustainable returns to our shareholders. We are confident that this game-changing acquisition will create significant opportunities that align perfectly with our one-firm go-to-market strategy. We are committed to establishing Reliance as a powerful, technology-driven enterprise that prioritizes sustainable profitability and increased shareholder value. We believe the acquisition of Fentner Associates will significantly accelerate Reliance's growth trajectory in early July.

Ezra Beyman: Our mission remains to build a multi-billion-dollar, highly profitable business enterprise that delivers substantial and sustainable returns to our shareholders. We are confident that this game-changing acquisition will create significant opportunities that align perfectly with our one firm go-to-market strategy. We are committed to establishing reliance as a powerful, technology-driven enterprise that prioritizes sustainable profitability and increased yourholder value. We believe the acquisition of Spentner's Associates will significantly accelerate reliance with growth trajectory.

Speaker Change: Our mission remains to build a multi-billion-dollar, highly profitable business enterprise that delivers substantial and sustainable returns to our shareholders.

Speaker Change: We are confident that this game-changing acquisition will create significant opportunities that align perfectly with our one-firm, go-to-market strategy.

Reliance: We are committed to establishing Reliance as a powerful, technology-driven enterprise that prioritizes sustainable profitability and increased shareholder value. We believe the acquisition of Spentner Associates will significantly accelerate Reliance's growth trajectory.

Ezra Beyman: In early July, we announced we were launching a significant initiative, a new division with Reliance, dedicated to the acquisition of multi-family and commercial real estate properties. This is an area where I personally have had great success in the past, building the third largest mortgage brokerage in the nation and accumulating a multi-billion-dollar portfolio of multi-family properties. A pillar, a successful real estate investor and M&A executive, will be joining the company to head this new division and will provide strategic guidance on our future real estate endeavors. His remarkable track record, including the successful creation of a three-billion-dollar real estate portfolio through strategic acquisition, not only showcases his ability to enhance asset value, but also his skill on navigating complex market dynamics to generate substantial investment returns.

Ezra Beyman: We announced we were launching a significant initiative, a new division with Reliance dedicated to the acquisition of multifamily and commercial real estate properties. This is an area where I personally have had great success in the past, building the third largest mortgage brokerage in the nation and accumulating a multi-billion dollar portfolio of multifamily properties. Abe Miller, a successful real estate investor and M&A executive, will be joining the company to head this new division and will provide strategic guidance on our future real estate endeavors.

Reliance: In early July

Reliance: We announced we were launching a significant initiative, a new division with Reliance dedicated to the acquisition of multifamily and commercial real estate properties.

Reliance: This is an area where I personally have had great success in the past.

Reliance: building the third largest mortgage brokerage in the nation and accumulating a multi-billion dollar portfolio of multifamily properties.

Abe Miller: Ed Miller, a successful real estate investor and M&A executive, will be joining the company to head this new division and will provide strategic guidance.

Ezra Beyman: His remarkable track record, including the successful creation of a three billion dollar real estate portfolio through strategic acquisitions, showcases not only his ability to enhance asset value but also his skill in navigating complex market dynamics to generate substantial investment returns. Having worked with Abe in my prior real estate business, I have personally witnessed the immense value his insights bring to an organization. With Abe's extensive experience and strategic vision, we are confident this initiative will accelerate our progress toward achieving our objectives. Abe will not receive a fixed salary for his services; instead, he will be compensated entirely on a success-based model.

Reliance: on our future real estate endeavors.

Abe Miller: His remarkable track record, including the successful creation of a $3 billion real estate portfolio through strategic acquisitions, not only showcases his ability to enhance asset value, but also his skill in navigating complex market dynamics.

Ezra Beyman: Having worked with Abe in my prior real estate business, I have personally witnessed the immense value his insights bring to an organization. With Abe's extensive experience on strategic vision, we are confident this initiative will accelerate our progress toward achieving our objectives. It will not receive a six-starry for his services; instead, he will be compensated entirely on an excess success-based model. We believe the new real estate division sets the launch following the closing of the Spentner Acquisition, aligns perfectly with our ongoing strategy focused on accretive and cash flow positive acquisitions. A strategy where we have a proven track record of successful integration, particularly in the insurance brokerage sector.

Ayva: to generate substantial investment returns. Having worked with Abe in my prior real estate business, I have personally witnessed the immense value his insights bring to an organization. With Abe's extensive experience and strategic vision, we are confident this initiative will accelerate our progress toward achieving our objectives.

Speaker Change: It will not receive a fixed salary for its services. Instead, it will be compensated entirely on a success-based model.

Ezra Beyman: We believe this new real estate division, set to launch following the closing of the Sprechner acquisition, aligns perfectly with our ongoing strategy focused on accretive and cash flow positive acquisitions, a strategy where we have a proven track record of successful integration, particularly in the insurance brokerage sector. Furthermore, the new division will broaden our company's portfolio by diversifying into multiple business lines and asset categories. Through this expansion into real estate, Reliance will be positioned to leverage non-dilutive financing sources supported by both the intrinsic value of the assets and our operational cash flows.

Speaker Change: We believe this new real estate division set to launch following the closing of the Sprechner acquisition aligns perfectly with our ongoing strategy focused on accretive and cash flow positive acquisitions, a strategy where we have a proven track record of successful integration, particularly in the insurance brokerage sector. Furthermore,

Ezra Beyman: Furthermore, the new division will broaden our company's portfolio by diversifying into multiple business aligns and asset categories. Through this expansion into real estate, real estate will be positioned to leverage non-deluda financing sources supported by both the intrinsic value of the assets and our operational cash flows.

Speaker Change: The new division will broaden our company's portfolio by diversifying into multiple business

Speaker Change: Through this expansion into real estate, Reliance will be positioned to leverage non-dilutive financing sources supported by both the intrinsic value of the assets and our operational cash flows.

Ezra Beyman: Finally, as previously announced, Reliance has significantly simplified its capital structure pursuant to exercising all outstanding Series B and Series G warrants, which removed the Series B derivative instrument from our balance sheet and eliminated the potentially perceived significant warrant overhang, which we believe may have also adversely impacted our publicly traded share price. We are confident that our enhanced capital table will resonate well both with our current shareholders as well as future investors as we continue to advance our key initiatives through 2024 and beyond. I would now like to turn the call over to Joel Markovits, Chief Financial Officer of Reliance Global, who will review the financial results for the quarter ended June 30, 2024. Joel

Ezra Beyman: Finally, as quickly as you know, the alliance has significantly simplified its capital structure to suit and to exercise its all outstanding SyriZee and SyriZee warrants, which remove the SyriZee's derivative instruments from our balance sheet and eliminated the potentially perceived significant warrants overhand, which we believe may have also adversely impacted our publicly traded share price. We are confident that our enhanced capital table will resonate well both with our current shareholders as well as future investors as we continue to advance our key initiatives through 2024 and beyond.

Speaker Change: Finally, as previously announced, Reliance has significantly simplified its capital structure pursuant to exercises of all outstanding Series Z and Series G warrants.

Speaker Change: which removed the Series B derivative instrument from our balance sheet and eliminated the potentially perceived significant warrant overhang which we believe may have also adversely impacted our

Speaker Change: publicly traded share price. We are confident that our enhanced capital table will resonate well, both with our current shareholders as well as future investors, as we continue to advance our key initiatives through 2024 and beyond.

Joel Markovits: I would like to turn the call over to Joe Markivitz, Chief Financial Officer of Reliance Global, who will review the financial results for the quarter ended June 30, 2024. Thank you very much, Ezra, and a very good afternoon to you all. It's my pleasure to share with you some of our financial results for the second quarter of 2024.

Joel Markovits: I would now like to turn the call over to Joel Markovits, Chief Financial Officer of Reliance Global, who will review the financial results for the quarter ended June 30, 2024. Joel?

Joel Markovits: Thank you very much, Ezra, and a very good afternoon to you all. It's my pleasure to share with you some of our financial results for the second quarter of 2024. All figures presented are approximate. As mentioned by Ezra, revenues for the three- and six-month periods ended June 30, 2024, increased by 1% and 3%, respectively, from the same period in 2023, resulting in revenues of $3.2 million for the quarter and $7.3 million for the year-to-date period.

Joel Markovits: Thank you very much, Ezra, and a very good afternoon to you all. It's my pleasure to share with you some of our financial results for the second quarter of 2024. All figures presented are approximate.

Joel Markovits: All figures presented are approximate. As mentioned by Ezra, revenues for the three and six month periods ended June 30, 2024, increased by 1% and 3%, respectively, from the same period in 2023, resulting in revenues of $3.2 million for the quarter and $7.3 million for the year-to-date period. Our solid, sustained, and expanded revenue levels are primarily attributed to organic growth. Our operating expenses for the second quarter of 2024 decreased by 13% or $624,000 from $5 million in the second quarter of 2023 to $4.4 million in 2024. Some key drivers include a decrease of 12% now general and administrative costs, a decrease of 30% in our marketing costs, and considering with counter terms and or paid all our agreements, there were no related value adjustments that would have affected our operating results.

Speaker Change: As mentioned by Ezra, revenues for the three- and six-month periods ended June 30, 2024, increased by 1% and 3%, respectively, from the same period in 2023, resulting in revenues of $3.2 million for the quarter and $7.3 million for the year-to-date period.

Joel Markovits: Our solid sustained and expanded revenue levels are primarily attributed to organic growth. Our operating expenses for the second quarter of 2024 decreased by 13% or $654,000 from $5 million in the second quarter of 2023 to $4.4 million in 2024. Key drivers include a decrease of 12% in our general and administrative costs, a decrease of 30% in our marketing costs, and, considering we've come to terms with, or paid all on-out agreements, there were no related fair value adjustments that would have affected our operating results. These expense efficiencies are offset by increases in commissions and employee compensation, costs driven primarily by the company's continued expansion and inflationary impact.

Speaker Change: Our solid sustained and expanded revenue levels are primarily attributed to organic growth.

Speaker Change: Our operating expenses for the second quarter of 2024 decreased by 13% or $654,000 from $5 million in the second quarter of 2023 to $4.4 million in 2024.

Speaker Change: Some key drivers include a decrease of 12% in our general and administrative costs, a decrease of 30% in our marketing costs, and, considering we've come to terms and or paid all-on-out agreements, there were no related fair value adjustments that would have affected our operating results.

Joel Markovits: These expensive efficiencies are offset by increases in commission and employee compensation, costs driven primarily by the company's continued expansion and a stationary impact. The sustained revenues and decreased operating costs this quarter resulted in a vast increase in net results from continuing operations. Compared to the same three-month period ended June 30, 2023, lots from continuing operations decreased by 62% from $3.9 million to $1.5 million. Over them, our adjusted EBITDA metric, which is a non-GAAP measure by a key company performance indicator, came in essentially flat to this quarter versus prior at a marginal loss of $178,000 or just under 6% of the quarter's revenues.

Speaker Change: These expense efficiencies are offset by increases in commission and employee compensation, costs driven primarily by the company's continued expansion and inflationary impacts.

Joel Markovits: The sustained revenues and decreased operating costs this quarter resulted in a vastly improved net result from continuing operations. A patch of the same three-month period ended June 30, 2023. Loss from continuing operations decreased by 62% from $3.9 million to $1.5 million. EBITDA, our adjusted EBITDA metric, which is a non-gap measure but a key company performance indicator, came in essentially flat for this quarter versus the prior at a marginal loss of $178,000, or just under 6% of the quarter's revenue. The six-month period ended June 30, 2024. Every day loss was $252,000, or just around a nominal 3% of six-month revenue.

Speaker Change: The sustained revenues and decreased operating costs this quarter resulted in a vastly improved net result from continuing operations.

Speaker Change: compared to the same three-month period ended June 30, 2023.

Speaker Change: Loss from continuing operations decreased by 62% from $3.9 million to $1.5 million.

Speaker Change: EBITDA, our adjusted EBITDA metric, which is a non-gap measure but a key company performance indicator, came in essentially flat for this quarter versus prior at a marginal loss of $178,000, or just under 6% of the quarter's revenues.

Joel Markovits: In the six month period ended June 30, 2024, EBITDA loss was $252,000 or just around a nominal 3% of six month revenues. We do expect EBITDA to continuously improve as we progress through the fiscal year and especially post-close and post-onmoling on spend energy due to the acquisition discussed earlier as well.

Speaker Change: The six-month period ended June 30, 2024. Every day loss was $252,000, but just around a nominal 3% of six-month revenues.

Speaker Change: We do expect EBITDA to continuously improve as we progress through the fiscal year, and especially post-close and post-onboarding of the Spartan entity, pursuant to the acquisitions discussed earlier by Ezra.

Joel Markovits: With this, we conclude our prepared remarks. We'll be happy to answer any questions or comments participants may have.

Operator: We do expect EBITDA to continuously improve as we progress through the fiscal year and especially post-close and post-onboarding of the Spartan Entity pursuant to the acquisitions discussed earlier by Ezra. With that, we conclude our prepared remarks and will be happy to answer any questions or comments participants may have. With that, Operator, please open the line.

Speaker Change: With this, we conclude our prepared remarks. We'll be happy to answer any questions or comments participants may have. With that, operator, kindly open the lines.

Operator: With that, operator kindly opened the lines. Thank you at this time. We'll 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 ask the well opposing your question. Please pick up your handset if listening on speaker phone to provide optimum sound quality. Once again, please press star one on your phone at this time if you wish to ask a question. And please hold while we pull for questions. Once again, that is star one on your phone at this time if you wish to ask a question.

Operator: Thank you. At this time, we will be conducting a question and answer session. If you have any questions or comments, please press star 1 on your phone at this time. We ask that while asking your question, you please pick up your handset if listening on speakerphone to provide optimum sound quality. Once again, please press star 1 on your phone at this time if you wish to ask a question; please hold while we poll for questions. Once again, that is star one on your phone at this time. If you wish to ask a question... And the first question today is coming from Nick Pincus from Forest Capital. Nick, your line is live.

Speaker Change: Thank you. At this time, we will be conducting a question and answer session. If you have any questions or comments, please press star 1 on your phone at this time.

Speaker Change: We ask that while posing your question you please pick up your handset if listening on speakerphone to provide optimum sound quality Once again, please press star 1 on your phone at this time if you wish to ask a question

Speaker Change: And please hold while we poll for questions.

Speaker Change: Once again, that is star one on your phone at this time, if you wish to ask a question.

Nick Pinkis: And the first question today is coming from Nick Pinkis from Forest Capital. Make your line is live. Well, congratulations on the continued progress that you guys are making with the business.

Speaker Change: And the first question today is coming from Nick Pincus from Forest Capital. Nick, your line is live.

Nick Pincus: Well, congratulations on the continued progress that you guys are making with the business. The first question was, I was wondering if you could provide some more color on the new real estate division that you're launching.

Nick Pincus: Well, congratulations on the continued progress that you guys are making with the business. The first question was, I was wondering if you could provide some more color on the new real estate division that you're launching?

Ezra Beyman: The first question was, I was wondering if you could provide some more color on the new real estate division that you're launching. Okay, yeah, that's something that we're excited about. As many people know, the last several years, you know, in real estate, I have been with the ups and the race being up and some people buying property is maybe at higher levels they would have wanted to. We feel, based on our, you know, probably close to three days, decades of experience, prior to that, that the opportunity is ripe to really pick up some good value, primarily in multi-family, which we feel that's where we have the experience, and that's also the safest, you know, everyone needs a place to put their head down at night, as opposed to, you know, other types of real estate, and we're excited.

Ezra Beyman: OK, yeah, that's something that we're excited about. As many people know, the last several years. You know, in real estate, I have been with the ups and the rates being up and... at www.relianceglobal.com as opposed to other types of real estate.

Speaker Change: Okay, yeah, that's something that we're excited about. As many people know, the last several years, you know, in real estate, I have been with the ups and the rates being up and

Speaker Change: I guess some people buying property is maybe at higher levels they would have wanted to. We feel, and based on our, you know, probably close to three decades of experience,

Speaker Change: Prior to that, that the opportunity is ripe to really pick up some good value Primarily in multifamily, which we feel that's where we have the experience and it's also The safest, you know, everyone needs a place to put their head down at night

Ezra Beyman: And we're excited. And Abe Miller is, too. He's, you know, I like to say my crackerjack of the industry. He's known for closing deals. Big, small, giant, and getting them at the right price, and we're really excited. So, of course, we look forward to finding the deals and then working on them. But as we mentioned, we want to first take care of this Brettner acquisition, which is... We're very involved and very important, but we are looking forward to some excitement as well in a positive way in the real estate sector.

Speaker Change: as opposed to, you know, other types of real estate. And we're excited, and Abe Miller is.

Ezra Beyman: And Eight Miller is, he's, you know, I have to say, in my crack a jack of the industry, he's known, closing deals, big, small, giant, and getting met the right deal, and we're really excited. So, of course, we look forward to finding the deals and then working on them. But, as we mentioned, we want to first take care of the spread and their acquisition, which is, we're very involved and very important; but we are looking forward to some excitement as well in a positive way in the real estate sector.

Speaker Change: He's you know, I could say in my crackerjack of the industry, he's known closing deals

Speaker Change: Big, small, giant, and getting them at the right deal, and we're really excited. So, of course, we look forward to finding the deals and then working on them. But as we mentioned, we want to first take care of this Brettner acquisition, which is

Speaker Change: We're very involved and very important, but we are looking forward to some excitement as well in a positive way in the real estate sector.

Nick Pinkis: So that actually touches on my second question. The Spetner acquisition, which seems pretty exciting and sounds like it's moving forward.

Ezra Beyman: Well, that actually touches on my second question, the Spetner acquisition, which seems pretty exciting and sounds like it's moving forward. I was wondering if there are any additional details that you could share on both the progress and the status of the acquisition, as well as any other developments as it may relate to

Speaker Change: Well, that actually touches on my second question. The Spetner acquisition, which seems pretty exciting and sounds like it's moving forward, I was wondering if there are any additional details that you could share on both the progress, the status of the acquisition, as well as any other developments as it may relate to Spetner.

Ezra Beyman: I was wondering if there are any additional details to share on both the progress, the status of the acquisition, as well as any other development as it may relate to Spetner. So, as far as the progress we're getting, thank God, we're new village behind us and a lot of the other requirements and the contract and everything, that's really behind us. We're now focusing on getting a close. And we're getting closer and closer, actually. And as far as the business itself, we're really floored and excited because it's literally growing by the day. As we mentioned, it went from servicing 85,000 employees to 85,000 employees from less than half of that, about half of that, when we started this transaction, and that's growing and growing. It's a very strong, fourth generational business, actually.

Ezra Beyman: So as far as the progress we're making, thank God, we have due diligence behind us and a lot of the other requirements and the contracts and everything that's really behind us. We're now focusing on getting it closed. And we're getting closer and closer, actually. And as far as the business itself goes, we're really floored and excited because it's literally growing by the day, as we mentioned. We went from servicing 85,000 employees to 85,000 employees from less than half of that, or about half of that, when we started this transaction. And it's growing and growing. It's a very strong, you know, fourth-generation business, actually.

Speaker Change: So as far as the progress we're getting, thank God we're due diligence behind us and a lot of the other requirements and the contracts and everything that's really behind us, we're now focusing on getting it closed.

Speaker Change: And we're getting closer and closer, actually. And as far as the business itself...

Speaker Change: We're...

Speaker Change: We're really floored and excited because it's literally growing by the day as we mentioned went from servicing 85,000 employees to 85,000 employees from less than half of that or about half of that when we started this transaction and it's growing and growing. It's a very strong

Ezra Beyman: They're a very strong team, and we're really watching them and excited. They're excited. We're excited. They're gearing up for that. That's a biggie. No question about it.

Ezra Beyman: They're a very strong team, and we're really watching you, and I'm very excited; we're excited.

Speaker Change: You know, fourth generational business actually. They're a very strong team and we're really watching it and excited. They're excited, we're excited, so we're gearing up for that. That's a biggie. No question about it.

Ezra Beyman: So we're gearing up for that. That's a biggie, no question about it.

Nick Pinkis: That's great.

Nick Pincus: That's great. Well, congrats again on the progress and good luck. Thank you very much.

Ezra Beyman: Well, congrats again on progress and good luck. Thank you very much. Thank you.

Speaker Change: That's great. Well, congrats again on the progress and good luck.

Operator: Thank you, and once again, it will be star 1 on your phone if you wish to ask a question at this time. There were no other questions from the lines. I will now turn the call back to the management team for closing remarks.

Operator: And once again, it will be star one on your phone if you wish to ask a question at this time. Star one, if you wish to ask a question at this time.

Speaker Change: Thank you very much.

Speaker Change: Thank you and once again it will be a star 1 on your phone if you wish to ask a question at this time. Star 1 if you wish to ask a question at this time.

Operator: And there were no other questions from the line, so I will now turn the call back to the management team for closing remarks.

Speaker Change: And there were no other questions from the lines. I will now turn the call back to the management team for closing remarks.

Ezra Beyman: Thank you very much.

Ted Ayvas: Thank you very much. On behalf of Ezra and the entire Reliance team, thank you for your participation in this business update. We're super charged and excited by the prospects of Reliance Global Group and very happy to be sharing and traveling on this onward journey with you, our valued shareholders, and other interested parties. Until next time, we wish you a very good evening and all the very best.

Ezra Beyman: I'll be off of Ezra, an entire Reliance team. Thank you for participation in this business update. We're supercharged and excited about the prospects of our land and global group and very happy to be sharing and traveling on this onward journey with you, our valued shareholders and other interested parties.

Speaker Change: Thank you very much on behalf of Ezra and the entire Reliance team. Thank you for your participation in this business update

Speaker Change: We are supercharged and excited by the prospects of Reliance Global Group and very happy to be sharing and traveling on this onward journey with you, our valued shareholders and other interested parties.

Ezra Beyman: Until next time, I wish you a very good evening and all the very best. Thank you.

Speaker Change: Until next time, we wish you a very good evening and all the very best.

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

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

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