RELI Reliance Global Group Inc

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest reported): August 10, 2023

 

Reliance Global Group, Inc.

(Exact name of registrant as specified in its charter)

 

Florida		001-40020		46-3390293
(State or other jurisdiction		(Commission		(IRS Employer
of Incorporation)		File Number)		Identification Number)

 

300 Blvd. of the Americas, Suite 105, Lakewood, NJ 08701

(Address of principal executive offices)

 

(732) 380-4600

(Registrant’s telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.)

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CF$ 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on which Registered
Common Stock, $0.086 par value per share		RELI		The Nasdaq Capital Market
Series A Warrants to purchase shares of Common Stock, par value $0.086 per share		RELIW		The Nasdaq Capital Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On August 10, 2023, Reliance Global Group, Inc. (the “Company”) issued a press release announcing its financial results for the three and six months ended June 30, 2023. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information contained in any website is not a part of this Current Report on Form 8-K.

 

In accordance with General Instruction B.2 of Form 8-K, the information included in this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.		Description
99.1		Press release of the registrant issued on August 10, 2023.
104		Cover Page Interactive Data File

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	Reliance Global Group, Inc.
Dated: August 10, 2023	By:	/s/ Ezra Beyman
		Ezra Beyman
		Chief Executive Officer

 

 

 

Exhibit 99.1

 

 

Reliance Global Group Achieves 12% Increase in Revenue for the Second Quarter of 2023

 

Working Capital Increases by $6.8 million

 

RELI Exchange Continuing to Grow its Network of Agency Partners

 

Strategic Plan for Consolidation of Subsidiary Agencies Leading to Enhanced Market Presence

 

Reports 30% Reduction in Loss from Operations for the First Half of 2023 Over Same Period Last Year

 

Company to Host Conference Call Today at 12:00 PM Eastern Time

 

LAKEWOOD, N.J., August 10, 2023 — Reliance Global Group, Inc. (Nasdaq: RELI; RELIW) (“Reliance”, “we” or the “Company”), today provided a business update and reported financial results for the second quarter ended June 30, 2023.

 

Ezra Beyman, CEO of Reliance, commented, “We are pleased to report a 12% and 21% year-over-year increase in revenue for the second quarter and first half of 2023 respectively, which primarily reflects the organic growth of the business, having acquired Barra Associates, in April 2022. Since that acquisition and subsequent rebranding as RELI Exchange, we have experienced continued growth of the agency network. Even though we made significant investments in RELI Exchange, we reduced our loss from operations by more than 30% in the first half of 2023 over the same period last year and our working capital has increased by $6.8 million or 150% since the end of fiscal year 2022. We view RELI Exchange as central to the long-term strategic plan and growth for the Company, and we are extremely pleased with our progress to date. By providing independent agencies a comprehensive suite of business tools, powered by the latest technologies and AI capabilities, the platform empowers these agents to not only compete but often surpass larger national agencies in their offerings.”

 

“As we look to the future, we are also consolidating our standalone agencies under Reliance Global Group, which we believe will provide significant benefits and efficiencies. We believe this consolidation would immediately boost the Company’s market presence across the U.S. by allowing Reliance Global Group to operate under one brand across all business lines. We expect it would also enhance our commission and bonus structure with the carriers due to volume, as well as increase cross-selling and enable better utilization of our talent across the organization within their respective insurance specialties.”

 

Moshe Fishman, Director of Insurtech and Operations, added, “With the bulk of the investment in RELI Exchange now completed and solid performance across our operating subsidiaries, we have successfully constructed what we believe is a highly scalable business model. Moreover, as an insurance agency, we do not face the industry headwinds or risk exposure of the carriers. In fact, rising premiums can have a positive impact on our margins and is often a catalyst for a large portion of the 300+ million American consumers to look for quotes elsewhere and replace their current policies with policies offering more value and a better price. As we continue to organically grow our platform and expand our reach across the U.S., we believe we are poised to succeed in the near term while also setting the stage for significant, sustained long-term future growth. We are confident that our strategic, cost-efficient, and differentiated approach to the market will drive substantial long-term returns for our shareholders.”

 

The Company’s complete financial results are available in its Quarterly Report on Form 10-Q, which will be filed with the U.S. Securities and Exchange Commission today.

 

 

Conference Call

 

Reliance Global Group will host a conference call today at 12:00 PM Eastern Time to discuss the Company’s financial results for the quarter ended June 30, 2023, as well as the Company’s corporate progress and other developments.

 

The conference call will be available via telephone by dialing toll-free +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and using entry code: 892366. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2381/48879 or on the investor relations section of the Company’s website at https://relianceglobalgroup.com/events-and-presentations/.

 

A webcast replay will also be available on the Company’s Investors section of the website (https://relianceglobalgroup.com/events-and-presentations/) through August 7, 2024. A telephone replay of the call will be available approximately one hour following the call, through August 22, 2023, and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering conference ID: 48879.

 

About Reliance Global Group, Inc.

 

Reliance Global Group, Inc. (NASDAQ: RELI, RELIW) is an InsurTech pioneer, leveraging artificial intelligence (AI), and cloud-based technologies, to transform and improve efficiencies in the insurance agency/brokerage industry. The Company’s business-to-business InsurTech platform, RELI Exchange, provides independent insurance agencies an entire suite of business development tools, enabling them to effectively compete with large-scale national insurance agencies, whilst reducing back-office cost and burden. The Company’s business-to-consumer platform, 5minuteinsure.com, utilizes AI and data mining, to provide competitive online insurance quotes within minutes to everyday consumers seeking to purchase auto, home, and life insurance. In addition, the Company operates its own portfolio of select retail “brick and mortar” insurance agencies which are leaders and pioneers in their respective regions throughout the United States, offering a wide variety of insurance products. Further information about the Company can be found at https://www.relianceglobalgroup.com.

 

Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. In some cases, forward-looking statements can be identified by terminology such as “may,” “should,” “potential,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions and include statements such as the Company having built a best-in-class InsurTech platform, making RELI Exchange an even more compelling value proposition and further accelerating growth of the platform, rolling out several other services in the near future to RELI Exchange agency partners, building RELI Exchange into the largest agency partner network in the U.S., the Company moving in the right direction and the Company’s highly scalable business model driving significant shareholder value. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and elsewhere and risks as and uncertainties related to: the Company’s ability to generate the revenue anticipated and the ability to build the RELI Exchange into the largest agency partner network in the U.S., and the other factors described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as the same may be updated from time to time. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, the Company’s Quarterly Reports on Form 10-Q, the Company’s Current Reports on Form 8-K and other subsequent filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

 

Contact:

 

Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: RELI@crescendo-ir.com

 

 

v3.23.2

Cover	Aug. 10, 2023
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 10, 2023
Entity File Number	001-40020
Entity Registrant Name	Reliance Global Group, Inc.
Entity Central Index Key	0001812727
Entity Tax Identification Number	46-3390293
Entity Incorporation, State or Country Code	FL
Entity Address, Address Line One	300 Blvd. of the Americas
Entity Address, Address Line Two	Suite 105
Entity Address, City or Town	Lakewood
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08701
City Area Code	(732)
Local Phone Number	380-4600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock, $0.086 par value per share
Title of 12(b) Security	Common Stock, $0.086 par value per share
Trading Symbol	RELI
Security Exchange Name	NASDAQ
Series A Warrants to purchase shares of Common Stock, par value $0.086 per share
Title of 12(b) Security	Series A Warrants to purchase shares of Common Stock, par value $0.086 per share
Trading Symbol	RELIW
Security Exchange Name	NASDAQ

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