PIH 1347 PROPERTY INSURANCE HOLDINGS

Fundamental Global Inc. Reports Fourth Quarter and Full Year 2024 Financial Results

Fundamental Global Inc. Reports Fourth Quarter and Full Year 2024 Financial Results

Mooresville, NC, April 01, 2025 (GLOBE NEWSWIRE) -- Fundamental Global Inc. (Nasdaq: FGF, FGFPP) (the “Company” or “Fundamental Global”) today announced results for the fourth quarter and full year ended December 31, 2024.

Kyle Cerminara, Chairman and Chief Executive Officer commented, “During 2024, we implemented initiatives to consolidate multiple public companies and streamline and simplify our operating structure. We successfully completed three merger transactions, monetized one of our real estate holdings, and continued to drive operating profit improvements in our managed services business. Recently, we announced an agreement for the sale of a portion of our reinsurance business for $5.6 million which we expect to close in the first half of 2025.”

“Our balance sheet is strong, with $109 million in total assets, nominal long-term debt and $74 million in stockholders’ equity. As part of our ongoing strategic evaluation, we will continue to focus on streamlining and simplifying our operations and increasing capital allocated to cash flow producing assets.”

Key Operational Highlights:

 In February 2024, the Company completed its merger with FG Group Holdings Inc. to consolidate operations, reduce operating costs and streamline the Company’s operations.
   
 In April 2024, the Company completed the sale of its Digital Ignition facility in Alpharetta, Georgia significantly reducing general and administrative expenses and long-term debt obligations.
   
 In September 2024, the Company completed the sale of its Strong/MDI Screen Systems, Inc. operating subsidiary for approximately $30 million and launched Saltire Capital Ltd. as a Canadian public company.
   
 In September 2024, the Company completed its merger with Strong Global Entertainment, Inc. to further reduce operating expenses and streamline the Company’s operations.
   
 In October 2024, our merchant banking team announced the closing of an initial public offering for Aldel Financial II Inc., a SPAC client for the Company.

   
 In February 2025, our merchant banking team announced the closing of an initial public offering for FG Merger II Corp., a SPAC client for the Company.
   
 In March 2025, the Company executed an agreement for the sale of a portion of its reinsurance business for $5.6 million.
   

Financial Highlights

Note: The financial results reflect the Company’s performance following the reverse merger between Fundamental Global Inc. and FG Group Holdings, Inc. Consequently, the financial results for periods prior to the merger include only the operations of FG Group Holdings, while results after February 29, 2024, reflect the combined operations of Fundamental Global. Additionally, the results of Strong/MDI and the Company’s reinsurance operations have been reclassified as discontinued operations and are not included in the results of continuing operations.

As of December 31, 2024, the Company’s key balance sheet items included:

 Total assets of $109.5 million, an increase of $47.3 million from December 31, 2023. Assets included equity holdings of $60.1 million, which included directly or indirectly held positions in Saltire Capital, Ltd., GreenFirst Forest Products, Inc., Firefly Media Systems Inc., OppFi Inc., FG Communities, Inc., Craveworthy LLC, and other holdings.
   
 Total stockholders’ equity of $74.2 million, an increase of $37.2 million from December 31, 2023, reflecting the increased scale of the Company following the merger transactions and consolidation initiatives.
   
 Short- and long-term debt totaled $2.4 million, a decrease of $5.4 million from December 31, 2023.

   

Revenue during 2024 increased $0.3 million or 1.5% to $17.3 million for the year. Revenue from managed services increased $5.5 million or 20.7% to $32.0 million on increasing demand from entertainment operators and contributions from the acquisition of Innovative Cinema Solutions in late 2023. Revenue growth from managed services was partially offset by increased non-cash equity method losses in the current year period.

Net loss attributable to common shareholders improved to $2.6 million for the year from a loss of $14.1 million in the prior year primarily due to the $21.8 million gain on the sale of Strong/MDI recognized during the year and improved performance in managed services. Net loss from continuing operations increased to $22.9 million from $12.3 million for the year. Stronger gross profit from managed services was offset by the addition of expenses of FGF which are not included in the periods prior to the merger and increased non-cash equity method losses.

Net loss per common share improved to $2.43 from $35.22 per common share in the prior year and net loss per common share from continuing operations improved to $22.84 from $29.38. The improvements are primarily due to the $21 million gain on the sale of Strong/MDI recognized during the 2024, as well as an increase in the number of weighted average shares outstanding as a result of the merger of the Company and FG Group Holdings.

Fundamental Global Inc. 

Fundamental Global Inc. (Nasdaq: FGF, FGFPP) and its subsidiaries engage in diverse business activities including reinsurance, asset management, merchant banking, and managed services.

The FG® logo and Fundamental Global® are registered trademarks of Fundamental Global LLC.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements are therefore entitled to the protection of the safe harbor provisions of these laws. These statements may be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “budget,” “can,” “contemplate,” “continue,” “could,” “envision,” “estimate,” “expect,” “evaluate,” “forecast,” “goal,” “guidance,” “indicate,” “intend,” “likely,” “may,” “might,” “outlook,” “plan,” “possibly,” “potential,” “predict,” “probable,” “probably,” “pro-forma,” “project,” “seek,” “should,” “target,” “view,” “will,” “would,” “will be,” “will continue,” “will likely result” or the negative thereof or other variations thereon or comparable terminology. In particular, discussions and statements regarding the Company’s future business plans and initiatives are forward-looking in nature. We have based these forward-looking statements on our current expectations, assumptions, estimates, and projections. While we believe these to be reasonable, such forward-looking statements are only predictions and involve a number of risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results, performance, or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements and may impact our ability to implement and execute on our future business plans and initiatives. Management cautions that the forward-looking statements in this press release are not guarantees of future performance, and we cannot assume that such statements will be realized or the forward-looking events and circumstances will occur. Factors that might cause such a difference include, without limitation, general conditions in the global economy; risks associated with operating in the merchant banking, and managed services industries, including inadequately priced insured risks, credit risk; our inability to execute on our multi-industry business strategy and potential loss of value of investments; risk of becoming an investment company; fluctuations in our short-term results as we implement our business strategies; risks of being unable to close the sale of our reinsurance business in a reasonable time period or at all; risks of not being able to execute on our investment and investment management strategy and potential loss of value of holdings; risk of becoming an investment company; fluctuations in our short-term results as we implement our business strategies; risks of being unable to close the sale of our reinsurance business in a reasonable time period or at all; risks of not being unable to attract and retain qualified management and personnel to implement and execute on our business and growth strategy; failure of our information technology systems, data breaches and cyber-attacks; our ability to establish and maintain an effective system of internal controls; our limited operating history as a public company; the requirements of being a public company and losing our status as a smaller reporting company or becoming an accelerated filer; any potential conflicts of interest between us and our controlling stockholders and different interests of controlling stockholders; and potential conflicts of interest between us and our directors and executive officers.

Our expectations and future plans and initiatives may not be realized. If one of these risks or uncertainties materializes, or if our underlying assumptions prove incorrect, actual results may vary materially from those expected, estimated or projected. You are cautioned not to place undue reliance on forward-looking statements. The forward-looking statements are made only as of the date hereof and do not necessarily reflect our outlook at any other point in time. We do not undertake and specifically decline any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect new information, future events or developments.

Investor Contact:

FUNDAMENTAL GLOBAL INC.

Consolidated Balance Sheets

($ in thousands)

  December 31, 2024  December 31, 2023 
       
ASSETS        
Cash and cash equivalents $7,794  $5,995 
Accounts receivable, net  3,384   3,529 
Inventories, net  1,432   1,482 
Equity holdings, at fair value  5,763   10,552 
Other equity holdings and other holdings  54,310   17,469 
Property, plant and equipment, net  2,781   11,115 
Operating lease right-of-use assets  201   371 
Finance lease right-of-use assets  1,105   1,258 
Assets of discontinued operations  31,626   9,886 
Other assets  1,073   486 
Total assets $109,469  $62,143 
         
LIABILITIES        
Accounts payable and accrued expenses $5,704  $4,834 
Deferred revenue and customer deposits  857   867 
Operating lease liabilities  236   421 
Finance lease liabilities  1,136   1,283 
Short-term debt  2,068   2,294 
Long-term debt, net of debt issuance costs  301   5,461 
Deferred income taxes  2,412   3,075 
Liabilities of discontinued operations  22,436   6,799 
Other liabilities  122   102 
Total liabilities  35,272   25,136 
         
Commitments and contingencies  -   - 
         
SHAREHOLDERS’ EQUITY        
Series A Preferred Shares  22,365   - 
Common stock  29   225 
Additional paid-in capital  50,924   55,856 
Retained earnings  (229)  2,336 
Treasury stock  -   (18,586)
Accumulated other comprehensive income (loss)  1,108   (4,682)
Total Fundamental Global stockholders’ equity  74,197   35,149 
Equity attributable to non-controlling interest  -   1,858 
Total stockholders’ equity  74,197   37,007 
Total liabilities and stockholders’ equity $109,469  $62,143 



FUNDAMENTAL GLOBAL INC.


Consolidated Statements of Operations

($ in thousands, except per share data)

  Three Months Ended December 31,  Year Ended December 31, 
  2024  2023  2024  2023 
Revenue:            
Net (loss) earnings on equity holdings and other holdings $(4,628) $440  $(14,675) $(9,437)
Net product sales  3,463   2,783   18,561   13,978 
Net services revenue  3,696   3,314   13,462   12,552 
Total revenue  2,531   6,537   17,348   17,093 
                 
Expenses:                
Costs of products  3,067   2,619   15,530   12,583 
Costs of services  2,791   2,263   9,963   8,893 
Selling expense  305   197   1,277   797 
General and administrative expenses  2,348   2,757   13,979   11,111 
Loss (gain) on impairment and disposal of assets  -   -   1,475   (5)
Total expenses  8,511   7,836   42,224   33,379 
Loss from operations  (5,980)  (1,299)  (24,876)  (16,286)
Other income (expense):                
Interest expense, net  (60)  (237)  (360)  (520)
Foreign currency transaction income (loss)  20   2   (7)  (1)
Bargain purchase on acquisition and other (expense) income, net  472   3,469   2,245   3,502 
Total other income, net  432   3,234   1,878   2,981 
Loss from continuing operations before income taxes  (5,548)  1,935   (22,998)  (13,305)
Income tax benefit  29   685   139   998 
Net (loss) income from continuing operations  (5,519)  2,620   (22,859)  (12,307)
Net (loss) income from discontinued operations  (1,913)  (4,556)  21,544   (2,334)
Net (loss) income  (7,432)  (1,936)  (1,315)  (14,641)
Net loss attributable to non-controlling interest  -   (442)  (160)  (564)
Dividends declared on Series A Preferred Shares  (447)  -   (1,410)  - 
Net loss attributable to common shareholders $(7,879) $(1,494) $(2,565) $(14,077)
                 
Basic and diluted net (loss) income per common share:                
Continuing operations $(4.72) $7.27  $(22.83) $(29.38)
Discontinued operations  (1.50)  (10.82)  20.41   (5.84)
Total $(6.23) $(3.55) $(2.43) $(35.22)
                 
Weighted average common shares outstanding:                
Basic and diluted  1,265   421   1,056   400 



FUNDAMENTAL GLOBAL INC.


Consolidated Statements of Cash Flows

(in thousands)

  Year Ended December 31, 
  2024  2023 
Cash flows from operating activities:        
Net loss from continuing operations $(22,859) $(12,307)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:        
Net unrealized holding loss on equity holdings  5,039   6,176 
Loss from equity method holdings  10,713   3,261 
Adjustment to gain acquisition of ICS assets  69   - 
Net realized gain on sale of equity holdings  (306)  (1)
Provision for doubtful accounts  68   7 
Provision for (benefit from) obsolete inventory  1   (34)
Provision for warranty  -   2 
Depreciation and amortization  829   841 
Amortization and accretion of operating leases  262   138 
Impairment of property and equipment  1,422   - 
Gain on merger of FGF and FGH  (2,321)  - 
Deferred income taxes  (469)  (933)
Stock compensation expense  1,619   1,605 
Changes in operating assets and liabilities:        
Other assets  1,109   378 
Accounts receivable  178   1,831 
Inventories  (19)  393 
Current income taxes  (46)  345 
Accounts payable and accrued expenses  952   817 
Deferred revenue and customer deposits  (66)  (789)
Operating lease obligations  (224)  (151)
Net cash (used in) provided by operating activities from continuing operations  (4,049)  1,579 
Net cash used in operating activities from discontinued operations  (665)  (1,423)
Net cash (used in) provided by operating activities  (4,714)  156 
         
Cash flows from investing activities:        
Capital expenditures  (46)  (164)
Proceeds from sales of equity securities  5,021   198 
Proceeds from sales of property and equipment  6,161   - 
Collection of note receivable  203   - 
Cash acquired in acquisition of ICS  -   58 
Cash acquired in Merger of FGF and FGH  1,903   - 
Net cash provided by investing activities from continuing operations  13,242   92 
Net cash used in investing activities from discontinued operations  (94)  (787)
Net cash provided by (used in) investing activities  13,148   (695)
         
Cash flows from financing activities:        
Payment of dividends on preferred shares  (1,411)  - 
Principal payments on short-term debt  (603)  (653)
Payment payments on long-term debt  (5,192)  (224)
Net borrowing under credit facility  97   - 
Proceeds from Strong Global Entertainment initial public offering  -   2,411 
Payments of withholding taxes for net share settlement of equity awards  (21)  (135)
Payments on finance lease obligations  (253)  (159)
Net cash (used in) provided by financing activities from continuing operations  (7,383)  1,240 
Net cash provided by financing activities from discontinued operations  525   2,143 
Net cash (used in) provided by financing activities  (6,858)  3,383 
         
Effect of exchange rate changes on cash and cash equivalents from continuing operations  (11)  21 
Effect of exchange rate changes on cash and cash equivalents from discontinued operations  (36)  95 
Net increase in cash and cash equivalents from continuing operations  1,799   2,932 
Net (decrease) increase in cash and cash equivalents from discontinued operations  (270)  28 
Net increase in cash and cash equivalents  1,529   2,960 
         
Cash and cash equivalents from continuing operations at beginning of year  5,995   3,063 
Cash and cash equivalents from continuing operations at end of year $7,794  $5,995 


EN
01/04/2025

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