Reliance Global Group, Inc.

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 business segments to our Reliance 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 investiture of the asset. 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 Relay Exchange platform, the cornerstone of our insured tech 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, mortgagee clause updates, and renewals through a seamless white-label digital interface. This allows partners to focus on expanding their book of business and strengthening live 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 cents per share 0.03 per share, payable on or about December 2nd, 2025, to shareholders of record as of October 30th, 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, the AT. 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 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 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 Markiewicz, 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 approximates. Let's 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 of 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. 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 non-cash equity grants, partially offset by decreased payroll pursuant to the Fortman subsidiary asset sales. General and administrative expenses came in at $1.1 million this quarter, versus $0.8 million in 2024. The change is primarily attributed to non-employee, non-cash equity payments, partially offset by less costs pursuant to the Fortman sale, one-firm efficiencies, and overall lean 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. Change is primarily driven by the gain on sale from Fortman, but offset by non-cash equity compensation. Adjusted EBITDA loss for the quarter in 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 Rely 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 in short-term 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 Questions, comments, and feedback. Operator?

Thank you. We'll now begin the question and answer session. If you've dialed in and you would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you'd like to withdraw your question, simply press star 1 again. We'll just take a moment to compile the Q&A roster. Your first question comes from the line of Ellen Litvak from Coors Capital. Your line is live.

Hi, thank you for taking my question. 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 one-time dividend or something you would consider again in the future quarters?

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

Well, thank you. I appreciate that. I'll hop back on the queue if you have any other further questions. Thanks again. Thank you.

As a reminder, if you'd like to ask a question, press star 1 on your telephone keypad. We'll just take another moment while we wait for any other questions. 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've made and remain confident that we'll 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.