Reliance Global Group, Inc.

Good day, and welcome to the Reliance Global Group third quarter business update conference call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for your 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, Tom. Good afternoon, and thank you for joining Reliance Global Group's 2024 third quarter financial results and business update conference call. On the call with us today are Ezra Bayman, 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 September 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 any additional information about the company, please contact Crescendo Communications at 212-671-1020. Before Mr. Baiman reviews the company's operating results for the quarter ended September 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 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. 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 file 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. 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 Bayman, Chairman and Chief Executive Officer of Reliance Global Group. Ezra?

Thanks, Ted. Good afternoon, and thank you to everyone for joining us this afternoon. We are pleased to report a highly successful third quarter marked by robust revenue growth and effective cost management. This reflects our commitment to driving sustained revenue while reducing expenses, leading to significantly improved net financial results. For the quarter ended September 30, 2024, revenue grew by 5% to $3.4 million, while total operating expenses declined by 16% to $3.9 million. This positive shift significantly improved our loss from operations by refreshing 64%, despite a 13% rise in commission expense due to higher first-year commissions. Net loss for the quarter was approximately $837,000, When compared to the prior year's third quarter, a net loss of around $139,000 or $1.8 million when adjusted to exclude the $1.7 million gain from the fair value of warrant liability as this instrument was largely liquidated in 2024. This quarter's net loss reflects an improvement of approximately $1 million or 54% over the previous year's comparable quarter. Furthermore, We are very pleased to report that this quarter brings positive adjusted EBITDA coming in at approximately 42,000, gain representing a 121% increase from the same period in the prior year. These highly positive financial results underscore the success of one firm's strategy. which unifies our own and geographically dispersed insurance agencies into a cohesive, collaborative operation. This approach enables efficient cross-selling, collaboration, and optimized use of human capital. The benefits of the one firm strategy are evident in this quarter's revenue growth, reduced operating costs, and positive shifts in net results. We feel strongly that our disciplined approach strengthens our financial foundation, and paves the way for sustained growth and long-term value creation for our shareholders. We also remain focused and highly energized in anticipation of a close in the coming months of the previously announced acquisition of Spentner Associates, Inc., a leading voluntary benefits insurance agency provider to over 85,000 employees nationally. We are confident that the integration of Spentner will close to double our consolidated and serve as a catalyst for additional accelerated revenue growth by having an expanded combined range of service offerings, enhancing our market position, and paving the way for sustained profitability and longer-term success. Since we originally announced our plans, we have become even more excited about the future prospects for the acquisitions. As Ben has managed, the voluntary benefit insurance segment has experienced significant growth. more than doubling the number of covered employees they serve from 45,000 when we initially announced the planned transaction to more than 85,000 today. By aligning Spentner's innovative benefit solutions with our strategic goals, we are not just driving growth, we are setting a new industry standard and bringing enhanced services to a broader audience. We are committed to establishing Reliance as a powerful technology-driven enterprise that prioritizes sustainable profitability. Our mission continues to focus on building a multi-billion dollar highly profitable business and to thrive at substantial and sustainable returns to our shareholders. This game-changing acquisition marks the beginning of a transformative period for Reliance, and we believe the acquisition of Spentner Associates With its unique voluntary benefits program and extensive market reach, we'll create substantial synergies and significantly accelerate Reliance's growth trajectory as we expand our personal insurance offerings through the Reliance Exchange platform. Additionally, in the third quarter of 2024, we launched an AI-powered commercial quote and buy solution on the Reliance Exchange platform ahead of schedule. This cutting-edge solution encompasses a broad spectrum of commercial insurance policies. By leveraging AI, our commercial quote and bind platform transforms the traditionally time-sensitive quoting process, enabling agents to offer clients faster, more competitive quotes, and seamless policy binding. This accelerated workflow not only enhances client satisfaction, but also empowers agents to unlock new revenue streams and increase commission potential. directly benefiting Reliance Exchange through its commission-sharing model. As I mentioned earlier, and I've stated in the past, our goal is to transform Reliance into a highly profitable, multi-billion-dollar enterprise that consistently delivers exceptional returns for our shareholders. We are committed to driving sustained growth and strengthening our market position through strategic initiatives, innovation, and disciplined fiscal management. We are excited to advance on this path, and we are confident in our ability to achieve financial success. As we discussed in our second quarter of conference call, we significantly simplified our capital structure pursuant to exercise of all outstanding Series Bs and Series G warrants, which we believe has eliminated the potentially perceived significant warrant overhang that may have adversely impacted our publicly traded share price. Executing on our growth strategy, including the planned acquisitions, we believe our enhanced capital structure will enable us to unlock significant value for shareholders. I would like now to turn the call over to Joel Markowitz, Chief Financial Officer of Reliance Global, who will review the financial results for the quarter ended September 30th, 2024. Joel?