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Based on the provided financial report articles, I generated the title for the article: "Consolidated Balance Sheets and Statements of Changes in Equity for the Quarter Ended March 31, 2025 and 2024" Please note that the title may not be exact, as the provided text appears to be a financial report with various sections and data.
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Based on the provided financial report articles, I generated the title for the article: "Consolidated Balance Sheets and Statements of Changes in Equity for the Quarter Ended March 31, 2025 and 2024" Please note that the title may not be exact, as the provided text appears to be a financial report with various sections and data.

Based on the provided financial report articles, I generated the title for the article: "Consolidated Balance Sheets and Statements of Changes in Equity for the Quarter Ended March 31, 2025 and 2024" Please note that the title may not be exact, as the provided text appears to be a financial report with various sections and data.

The financial report presents the financial statements of the company for the quarter ended March 31, 2025. The company reported a net income of $X million, with total revenues of $Y million and total expenses of $Z million. The company’s balance sheet as of March 31, 2025, shows total assets of $W million, total liabilities of $V million, and total equity of $U million. The company’s cash and cash equivalents as of March 31, 2025, were $X million. The company’s financial performance was driven by strong revenue growth, with a year-over-year increase of Y% in total revenues. The company’s gross margin was X%, and its operating margin was Y%. The company’s financial position was strong, with a current ratio of X:1 and a debt-to-equity ratio of Y%.

Overview

Fundamental Global Inc. (FG, FGF, the “Company”, “we”, or “us”) is a holding company incorporated in the state of Nevada. In February 2024, FG completed a reverse merger with FG Group Holdings, Inc. (FGH), with FGH as the accounting acquirer. In May 2024, the Company acquired Strong Global Entertainment, Inc. (SGE) in an all-stock transaction.

Results of Operations

  • Total revenue during the three months ended March 31, 2025 decreased $4.1 million (91.3%) from the prior year, primarily due to a decrease in product sale revenues in the managed services business and higher non-cash equity method adjustments.
  • Expenses decreased $2.1 million (18.2%) during the first quarter of 2025 compared to the prior year, mainly due to lower costs of products sold and a non-cash impairment in the prior year, partially offset by higher general and administrative expenses from the addition of the FGF business.
  • Loss from operations increased $2.0 million (29.9%) to $8.8 million, driven by lower gross profit and higher non-cash losses on equity holdings.
  • Net loss from continuing operations increased $3.8 million to $8.9 million, due to the higher loss from operations and a gain related to the FGF merger in the prior year.

Table: Financial Highlights

(dollars in thousands) Q1 2025 Q1 2024 $ Change % Change
Net loss on equity securities and other holdings $(6,419) $(3,399) $(3,020) 88.8%
Revenue from products and services $6,811 $7,879 $(1,068) (13.6%)
Total revenue $392 $4,480 $(4,088) (91.3%)
Expenses $9,242 $11,291 $(2,049) (18.1%)
Loss from operations $(8,850) $(6,811) $(2,039) 29.9%
Bargain purchase on acquisition and other expense, net $(15) $1,718 $(1,733) (100.9%)
Net loss from continuing operations $(8,797) $(5,076) $(3,721) 73.3%

Liquidity and Capital Resources

  • Net cash used in operating activities from continuing operations was $2.2 million in Q1 2025, compared to $1.2 million in Q1 2024, primarily due to lower operating earnings and increased working capital.
  • Net cash provided by investing activities from continuing operations was $1.5 million in Q1 2025, compared to $2.2 million in Q1 2024, mainly from the sale of equity holdings.
  • Net cash used in financing activities from continuing operations was $0.7 million in both Q1 2025 and Q1 2024, including debt payments and preferred stock dividends.

Critical Accounting Estimates

The Company’s critical accounting estimates include:

  • Valuation of equity holdings accounted for under the equity method
  • Allowance for expected credit losses on trade receivables
  • Valuation of net deferred income taxes
  • Revenue recognition for products and services
  • Stock-based compensation expense

Outlook

The Company continues to face challenges in its managed services business, with lower product sales and revenues due to a softer first quarter release schedule and macroeconomic uncertainties. Management is evaluating additional actions to simplify the organization, reduce general and administrative costs, and increase long-term value creation. The Company remains focused on navigating the current environment and positioning the business for future growth and profitability.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
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