Successfully integrates Medigap and actively pursuing additional acquisitions

Lakewood, NJ - (NewMediaWire) - March 31, 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, provided a business update today and reported financial results for the year ended December 31, 2021.

Ezra Beyman, CEO of Reliance Global Group, commented, “2021 was another monumental year for the Company as we achieved solid revenue growth, enhanced our senior management team, launched 5MinuteInsure.com and uplisted to the Nasdaq.  Moreover, we have maintained a solid balance sheet with over $4.6 million of cash and restricted cash at the end of the year, and our insurance agencies are collectively generating positive cash flows from operations.  As a result, we believe we have built a highly scalable platform poised for continued growth as we forge ahead through 2022.  In addition to our focus on organic growth, we have demonstrated a successful acquisition track record, where we’ve acquired profitable cash flow positive businesses with exciting growth strategies at attractive multiples. The following highlights our most current acquisition activity:

• In May 2021, the Company acquired J.P. Kush, which brings an extensive network of over one hundred independent agents across 10 states and expands our expertise in the health insurance marketplace.  
• In January 2022, the Company completed the acquisition of Medigap Health Insurance Company, which will expand our capabilities within the Medicare supplement market, which we believe would be a perfect complement and highly synergistic with our existing portfolio companies. In addition to bolstering our revenue going forward by more than 70%, we believe this transaction has the potential to be highly accretive.  

The Company has a robust pipeline of exciting prospective agencies under consideration for acquisition during 2022 and looks forward to further enhancing our top and bottom line results, as well as expanding the Company’s overall national footprint. The global insurance brokerage market was valued at $317.9 billion in 2020 and is projected to reach $515.3 billion by 2028 (Research Dive), however, it’s still considered highly fragmented making it ripe for further consolidation.  We believe the Company is ideally poised to capture a significant share of the market in the years ahead, whilst concurrently delivering maximum value to our shareholders.”

Fiscal Year 2021 Financial Results

• Revenue for the year ended December 31, 2021 increased 33% to $9.7 million, compared to $7.3 million for the year ended December 31, 2020. The $2.4 million increase was primarily due to organic operational growth, coupled with revenues generated from our insurance agencies acquired during 2020 and 2021.  
• Operating expenses for the year ended December 31, 2021 approximated $12.7 million, compared to approximately $10.9 million for the year ended December 31, 2020. Increase is driven by the positive expansion in top-line revenue which requires additional selling and managerial costs to be incurred. 
• Loss from operations for 2021 approximated $2.9 million, compared to $3.6 million in 2020, representing an improvement of approximately 20% or $714K year-over-year. Primary drivers for beneficial flux were the increased revenues and decreased general and administrative expenses per operational efficiencies deployed.
• Net loss for 2021 increased due to a non-operating, non-cash unrealized fair value change in our warrant commitment derivative financial instrument of approximately $17.7 million. This was the primary cause for our 2021 net loss of $21.1 million, or $2.09 per share, as compared to $3.7 million, or $0.88 per share in 2020.  The warrant commitment derivative financial instrument will be revalued each period on an ongoing basis. Fair value fluctuations are considered non-operating unrealized gains or losses and are non-cash in nature with no adverse impact to the Company’s liquidity or operational results. 
• Non-GAAP income (loss)* for the year ended December 31, 2021 resulted in a loss of $556K, as compared to $830K for the year ended December 31, 2020, a 33% decrease. 

*Non-GAAP income (loss) excludes the impact of depreciation and amortization, interest expense and service fees related to debt service, stock options expense, change in derivative liability and gain on extinguishment of debt.

The complete financial results will be available in the Company’s Form 10-K, which is expected to be filed with the U.S. Securities & Exchange Commission later today.

About Reliance Global Group, Inc.

Reliance Global Group, Inc. (NASDAQ: RELI, RELIW) is combining advanced technologies, with the personalized experience of a traditional insurance agency model. Reliance Global Group’s growth strategy includes both an organic expansion, including through 5minuteinsure.com, as well as acquiring well managed, undervalued and cash flow positive insurance agencies. Additional information about the Company is available 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. 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. 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