Reliance Global Group (EZRA) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01We may experience significant fluctuations in our quarterly and annual results
2. 02The Company has limited resources and there is significant competition for business combination opportunities. Therefore, the Company may not be able to acquire other assets or businesses
3. 03The Company may be unable to obtain additional financing, if required, to complete an acquisition, or to Company the operations and growth of existing and target business, which could compel the Company to restructure a potential business transaction or abandon a particular business combination
4. 04We hold our cash and cash equivalents that we use to meet our working capital and operating expense needs in deposit accounts that could be adversely affected if the financial institution holding such funds fail
5. 05Our inability to retain or hire qualified employees, as well as the loss of any of our executive officers, could negatively impact our ability to retain existing business and generate new business
6. 06Our growth strategy depends, in part, on the acquisition of other insurance intermediaries, which may not be available on acceptable terms in the future or which, if consummated, may not be advantageous to us
7. 07A cybersecurity attack, or any other interruption in information technology and/or data security and/or outsourcing relationships, could adversely affect our business, financial condition, and reputation
8. 08Rapid technological change may require additional resources and time to adequately respond to dynamics, which may adversely affect our business and operating results
9. 09Changes in data privacy and protection laws and regulations, or any failure to comply with such laws and regulations, could adversely affect our business and financial results
10. 10Because our insurance business is highly concentrated in Michigan, New York, Montana, New Jersey, Ohio, and Illinois adverse economic conditions, natural disasters, or regulatory changes in these regions could adversely affect our financial condition
11. 11If we fail to comply with the covenants contained in certain of our agreements, our liquidity, results of operations and financial condition may be adversely affected
12. 12Certain of our agreements contain various covenants that limit the discretion of our management in operating our business and could prevent us from engaging in certain potentially beneficial activities
13. 13Improper disclosure of confidential information could negatively impact our business
14. 14Our business, results of operations, financial condition and liquidity may be materially adversely affected by certain actual and potential claims, regulatory actions and proceedings
15. 15Our business could be adversely impacted by inflation

Risks Related to the Insurance Industry

1. 16We may experience increased competition from insurance companies, technology companies and the financial services industry, as well as the shift away from traditional insurance markets
2. 17Worsening of Current U.S. economic conditions as a result of the COVID-19 pandemic and the Russian Federation Military Action may adversely affect our business
3. 18Our business, and therefore our results of operations and financial condition, may be adversely affected by conditions that result in reduced insurer capacity
4. 19Quarterly and annual variations in our commissions that result from the timing of policy renewals and the net effect of new and lost business production may have unexpected effects on our results of operations
5. 20Our business practices and compensation arrangements are subject to uncertainty due to potential changes in regulations
6. 21Risk of lack of knowledge in distant geographic markets
7. 22Potential liability or other expenditures associated with potential environmental contamination may be costly
8. 23We compete in a highly regulated industry, which may result in increased expenses or restrictions on our operations

Risks Related to Investing in our Securities

1. 24We may experience volatility in our stock price that could affect your investment
2. 25Our failure to meet the continued listing requirements of The Nasdaq Capital Market could result in a delisting of our common stock
3. 26As of March 6, 2025, our CEO and Chairman of the Board, Ezra Beyman, is the beneficial owner of approximately 3.47% of the Company’s common stock, consisting of 99,672 common shares
4. 27Broad discretion of management
5. 28Future sales or other dilution of our equity could adversely affect the market price of our common stock
6. 29The price of our common stock may fluctuate significantly, and this may make it difficult to resell shares of common stock at attractive prices
7. 30Possible issuance of additional securities
8. 31We could be negatively impacted by cybersecurity attacks
9. 32We are subject to a variety of federal, state, and international laws and other obligations regarding data protection
10. 33Speculative Nature of Warrants
11. 34State blue sky registration; potential limitations on resale of the Company’s common stock
12. 35Changes in tax laws could materially affect our financial condition, results of operations and cash flows
13. 36Expectations of our company relating to environmental, social and governance factors may impose additional costs and expose us to new risks