Reliance Global Group, Inc.

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 Avis, Investor Relations at Reliance Global. Sir, the floor is yours.

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 Baiman, Chairman and Chief Executive Officer of Reliance Global Group, and Joel Markovich, Chief Financial Officer at 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 or would like additional information about the company, please contact Crescendo Communications at 212-671-1020. Before Mr. Bannon reviews the company's operating results for the quarter ended June 30th, 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 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. 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 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 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, levels of activity, performance, or achievement. 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 in 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 Baiman, Chairman and Chief Executive Officer of Reliance Global Group. Ezra?

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. Our net loss from continual operations for the second quarter has also improved by 62% from the same period last year. Our key non-GAAP metric 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 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 one-firm 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. 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, such as the Sprechner Associates' 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. Turning to the Spentner acquisition, its anticipated impact is far exceeding our initial expectations. Since announcing our plans, Spentner's bed-managed 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 transactions. Integrating Spettner'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 Spettner's innovative benefit solutions with our strategic goal, 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 Spentner's unique voluntary benefits program and extensive market search, market reach, will provide considerable synergistic opportunities once the transaction is completed, particularly in expanding our personal insurance lines through the Rely Exchange platform. 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 Fretner 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. 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 Spentner Associates will significantly accelerate Reliance's growth trajectory. In early July, 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. His remarkable track record including the successful creation of a $3 billion real estate portfolio through strategic acquisition, not only showcases 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. It will not receive a fixed salary for its services. Instead, it will be compensated entirely on an success-based model. We believe this new real estate division set to 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. 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. Finally, as previously announced, The Alliance has significantly simplified its capital structure, pursuing to exercise 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 Markiewicz, Chief Financial Officer of Reliance Global, who will review the financial results for the quarter ended June 30th, 2024. Joel?