Reliance Global : Achieves 61% Revenue Growth in Q3 2022 – Form 8-K

Reliance Global Group achieves revenue growth of 61% for the third quarter of 2022

Highly successful RELI exchange platform helps drive revenue growth

The company will host a conference call today at 12:00 p.m

LAKEWOOD, NJ Nov 15, 2022 – Reliance Global Group, Inc. (Nasdaq: RELI; RELIW) (“Reliance”, “we” or the “Company”), which combines artificial intelligence (AI) and cloud-based technologies with the personalized experience of a traditional insurance agency, yesterday released business update and financial results for the third quarter ended 09/30. 2022.

Ezra Beyman, CEO of Reliance Global Group, commented, “We are very pleased to report a 61% year-on-year increase in revenue for the third quarter of 2022. Our strong growth has been fueled by our recent acquisitions, including Barra & Associates, which successfully relaunched as the RELI Exchange earlier this year. We believe we have built a world-class InsurTech platform with the RELI Exchange platform and have never seen any other offering in the insurance industry with its speed or versatility. The platform allows agents to quickly compare offers side-by-side for a broad universe of airlines to ensure they are getting the best policies and value for their customers. RELI Exchange also simplifies an agent’s back office burden and lowers their costs by streamlining operations and minimizing paperwork, giving an agent more time to focus on clients, selling policies and growing their business. The platform has grown even faster than expected as independent agents continue to join the network. I am pleased to announce that RELI Exchange now has more than 120 agency partners, up from just 65 a few months ago.”

“We continue to add additional revenue streams to our agency partners that we believe will make RELI Exchange an even more compelling value proposition and help further accelerate the growth of the platform. For example, we recently added a new referral partnership with NRS Funding, which allows RELI Exchange agents to now offer merchant cash advance services to their clients. Additionally, several other services are in the pipeline that we believe we will be offering to RELI Exchange agency partners in the near future.”

“Overall, we remain committed to our goal of growing RELI Exchange to become the largest agency partner network in the United States, and based on our results to date, we believe we are moving in the right direction as our scalable business model will significantly increase shareholder value going forward.” ”

Financial results for the three months ended September 30, 2022

Revenue for the three months ended September 30, 2022 was approximately $4.2 million, an increase of approximately 61%, compared to $2.6 million for the three months ended September 30, 2021. The increase of $1.6 million was primarily from organic growth and additional insurance agencies acquired in 2022.

Operating expenses for the three months ended September 30, 2022 were approximately $5.7 million compared to approximately $3.1 million for the three months ended September 30, 2021. The increase was primarily due to commission expense, Salaries and wages, general and administration and attributable advertising and marketing expenses, which increased due to a combination of organic growth and the inclusion of the agencies acquired in 2022. Operating expenses for the three months ended September 30, 2022 include approximately $1 million of non-cash and non-recurring expenses.

Net income for the three months ended September 30, 2022 was approximately $6.1 million compared to a loss of $595,000 for the same period last year. The increase was primarily due to the $7.9 million change in fair value of the warrant liability.

Financial results for the nine months ended September 30, 2022

Revenue for the nine months ended September 30, 2022 was approximately $12.6 million, an increase of approximately 78%, compared to $7.1 million for the nine months ended September 30, 2021. The increase was mainly due to organic growth and the additional insurance agencies acquired in 2022.

Operating expenses for the nine months ended September 30, 2022 were approximately $18.5 million compared to approximately $9.2 million for the nine months ended September 30, 2021. The increase was primarily due to commission expense, Salaries and wages, general and administration and attributable advertising and marketing expenses, which increased due to a combination of organic growth and the inclusion of the agencies acquired in 2022. Operating expenses for the nine months ended September 30, 2022 include approximately $4.4 million of non-cash and non-recurring expenses.

Net income for the nine months ended September 30, 2022 was approximately $26.0 million compared to a loss of $2.5 million for the same period last year. The increase was primarily due to the $32.4 million change in fair value of the warrant liability.

Full financial results are available on the Company’s Form 10-Q filed with U.S. Securities & Exchange Commission yesterday.

telephone conference

Reliance Global Group will host a conference call today at 12:00 p.m. Eastern Time to discuss the Company’s financial results for the third quarter ended September 30, 2022, as well as corporate progress and other company developments.

The conference call is available by calling toll-free 888-506-0062 for US callers or +1 973-528-0011 for international callers using the access code 905469. A webcast of the conference is available at https://www.webcaster4.com/Webcast/Page/2381/47068 or in the Investor Relations section of the Company’s website at https://relianceglobalgroup.com/investor-relations/.

A replay of the webcast will also be available on the Company’s Investors section of the website (https://relianceglobalgroup.com/investor-relations/) through November 16, 2023. A telephone recording of the call will be available approximately one hour after the call through November 29, 2022 and can be accessed by calling 877-481-4010 for US callers or +1 919-882-2331 for international callers and entering the conference ID: 47068.

About Reliance Global Group, Inc.

Reliance Global Group, Inc. (NASDAQ: RELI, RELIW), an InsurTech pioneer, is working to transform the traditional insurance agency model by combining artificial intelligence (AI) and automation with the personalized experience of a traditional insurance agency model. Reliance Global Group’s growth strategy includes the organic expansion of 5MinuteInsure.com, It is an online business-to-consumer platform that uses artificial intelligence and data mining to provide competitive insurance quotes in 5 minutes, and RELI exchange, a B2B InsurTech platform and agency partner network for insurance agents and agencies, designed to give independent agents a full range of business development tools and the ability to compete effectively with national agencies. More 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 historical facts in this press release may constitute forward-looking statements and are not guarantees of future performance, conditions or results and include a number of of risks and uncertainties. In some instances, forward-looking statements are qualified by words such as “may”, “should”, “potential”, “continue”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates” and the like Expressions and include statements such as the company having built a world-class InsurTech platform, making RELI Exchange an even more compelling value proposition and further accelerating the growth of the platform by introducing several other services in the near future to becoming RELI Exchange agency partners, building RELI Exchange into the largest agency partner network in the US, the company is moving in the right direction and the company’s highly scalable business model drives significant shareholder value. Actual results could differ materially from those projected in the forward-looking statements due to a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and elsewhere, and risks and uncertainties relating to: the Company’s ability to generate anticipated revenues and grow the RELI exchange into the largest agency partner network in the United States and the other factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 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 the statements contained herein and elsewhere, including those in the Company’s Annual Report on Form 10-K contained risk factors for the year ended December 31, 2021, the Company’s quarterly reports on Form 10-Q, the Company’s most recent current reports on Form 8-K a and subsequent filings with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statements contained herein. All forward-looking statements speak only as of the date of this press release.

Contact:

Crescendo Communications, LLC
Phone: +1 (212) 671-1020
E-mail: [email protected]

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