美國

證券交易委員會及交易所

華盛頓特區，20549

表單 10-Q

（馬克一）

☒	根據1934年證券交易法第13或15（d）節提交的季度報告書

截至季度結束 9月30日， 2024

或者

☐	根據1934年證券交易法第13或15(d)條的過渡報告

委員會檔案號碼： 001-36366

Fundamental 全球貨幣 Inc.

(根據公司章程所述的註冊人的正確名稱)

內華達		46-1119100
(州或其他司法管轄區) 公司的成立或組織		(美國國稅局雇主綜合所得稅納稅單位的雇主識別號碼）

108 Gateway Blvd, 套房204, 姆斯維爾, 北卡羅來納州 28117

(主要行政辦公室地址及郵政編碼)

(704) 994-8279

（申報人的電話號碼，包括區號）

不適用

(如有更改，請填寫更改前的名稱、地址和財政年度)

根據該法案第12(b)條紀錄的證券：

每個類別的標題	交易標誌	在哪個交易所上市的名字
普通股，每股$0.001 每股面值	FGF	你接受的訓練數據截止到2023年10月。納斯達克股票市場有限責任公司
8.00% 累積優先股A系列，每股面值 $25.00	FGFPP	你接受的訓練數據截止到2023年10月。納斯達克股票市場有限責任公司

勾選表示公司已按照證券交易法第13或15(d)條款的規定，在過去12個月（或公司需要提交此類報告的較短期限內）提交了所有所需的報告；並且公司在過去90天內一直受到此類提交報告的要求。是的☒ 否 ☐

請勾選，指出在過去12個月內（或更短時間並應提供此類文件的情況下），申報人是否已依據Regulation S-t（本章節之§232.405號）提交每一個所需提交的互動式數據文件。是的☒ 否 ☐

請以勾選的方式表明登記者是大型加速報告者、加速報告者、非加速報告者、較小的報告公司或新興成長公司。請參閱《交易所法》第120億2條中對「大型加速報告者」、「加速報告者」、「較小的報告公司」和「新興成長公司」的定義。

大型加速申报人 ☐

加速檔案申報人 ☐

非加速檔案人 ☒

較小的報告公司☒

新興成長公司☐

如果是新興成長型企業，請用勾選號表示該註冊人已選擇不使用按照《交易所法》第13(a)條規定提供的任何新的或修訂的財務會計準則所提供的延長過渡期進行遵守。 ☐

勾選以表示該登記人是否為空殼公司（依照交易所法規120億 2 條所定義）。是 ☐ 否☒

截至2024年11月8日，登記公司普通股的流通股數量為 1,264,226.

第一部分財務資料		3

項目一。財務報表		3

第二項。管理層對財務狀況及營運結果進行討論及分析		37

第三項。關於市場風險的定量和定性披露		45

第四項。控制和程序		45

第二部分其他資訊		45

項目一。法律程序		45

第一項。風險因素		46

第二項。未登記出售股份證券及利用所得款項		54

第三項。高級證券違約		54

第四項。礦山安全披露		54

第五項。其他資訊		54

第六項。展品		54

簽名		55

第一部分財務資訊

項目 1. 基本報表

基礎全球貨幣公司。

濃縮合併資產負債表

（在千股，股票和每股數據除外）

	2024年9月30日
	(未經審計)		2023年12月31日

資產
現金及現金等價物	$	6,460	$	5,995
Accounts receivable (net of credit allowances of $66 和$40，分別爲		4,813		3,529
淨存貨		1,480		1,482
權益證券，按公允價值計量（成本基礎分別爲$9,106 和$，8,679，分別爲$		9,152		10,552
其他權益證券和其他持有		58,980		17,469
物業、廠房和設備，淨值		3,067		11,115
經營租賃使用權資產		249		371
融資租賃使用權資產		1,006		1,258
遞延保單獲得成本		1,939		-
再保賬面應收餘額（扣除預期淨損失準備金 $96 和 $0，分別		19,245		-
存放在再保公司的基金類型		8,350		-
停止經營的業務的資產		-		9,886
其他資產		1,218		486
總資產	$	115,959	$	62,143

負債
應付賬款和應計費用	$	5,836	$	4,834
已收入賬但尚未履行服務的營收和客戶存款		900		867
賠款準備金損失和調整費用準備金		11,200		-
未賺保費準備金		8,040		-
營運租賃負債		288		421
融資租賃負債		1,036		1,283
短期債務		2,360		2,294
開多期債務淨額，減去債務發行成本		369		5,461
遞延所得稅		2,607		3,075
已停用經營的負債		-		6,799
其他負債		123		102
總負債		32,759		25,136

承諾和 contingencies (注14)		-		-

股東權益
A系列優先股，$25.00 優先股和清算價值， 1,000,000 授權股本數; 894,580 截至2024年9月30日已發行和流通的股票數量		22,365		-
普通股，每股面值爲 $0.0001；0.001 面值；4,000,000 授權股數；1,264,226 和 900,107 截至2024年9月30日和2023年12月31日，已發行和流通的股份分別爲		29		225
追加實收資本		50,470		55,856
留存收益		8,822		2,336
庫存股票，111,779 截至2023年12月31日的成本計算股份		-		(18,586	)
累積其他綜合收益（損失）		1,514		(4,682	)
全球貨幣股東權益總額		83,200		35,149
歸屬於非控股權益的權益		-		1,858
股東權益總額		83,200		37,007
總負債和股東權益	$	115,959	$	62,143

請參閱簡明綜合財務報表附註。

基礎全球貨幣公司。

簡化合並利潤表

(以千爲單位，每股數據除外)

(未經審計)

	2024			2023			2024			2023
	截至三個月 9月30日,						截至九個月 9月30日,
	2024			2023			2024			2023
收入：
已賺保費收入	$	4,293		$	-		$	8,765		$	-
股票和其他持有資產的淨損失		(2,636	)		(2,645	)		(10,047	)		(9,877	)
產品淨銷售額		5,681			3,631			15,098			11,195
淨服務收入		3,115			3,100			9,766			9,238
總營業收入		10,453			4,086			23,582			10,556

費用:
淨虧損和損失調整費用		2,927			-			5,387			-
延期政策獲取成本的攤銷費用		1,050			-			2,206			-
產品成本		4,589			3,089			12,463			9,964
服務成本		2,293			2,179			7,172			6,630
銷售費用		315			203			972			600
一般和行政費用		4,367			2,662			11,631			8,354
資產減值和處置(損益)		-			-			1,475			(5	)
總支出		15,541			8,133			41,306			25,543
營業損失		(5,088	)		(4,047	)		(17,724	)		(14,987	)
其他收入（費用）：
利息費用，淨額		(66	)		(121	)		(300	)		(283	)
外幣交易損失		(21	)		(2	)		(27	)		(3	)
關於收購的划算購買和其他（費用）收入，淨額		(86	)		10			1,773			33
總其他(收益)費用，淨額		(173	)		(113	)		1,446			(253	)
持續經營損失在所得稅之前		(5,261	)		(4,160	)		(16,278	)		(15,240	)
所得稅（費用）收益		19			306			110			313
持續經營的淨損失		(5,242	)		(3,854	)		(16,168	)		(14,927	)
已停止經營的業務淨利潤（附註4）		22,901			529			23,457			2,222
淨利潤（損失）		17,659			(3,325	)		7,289			(12,705	)
歸屬於非控股權益的淨利潤（虧損）		-			(4	)		(160	)		(122	)
已宣佈對A系列優先股的股息		(447	)		-			(963	)		-
歸屬於普通股東的淨利潤（損失）	$	17,212		$	(3,321	)	$	6,486		$	(12,583	)

普通股每股基本和稀釋的淨（虧損）收益：
持續經營	$	(4.98	)	$	(9.28	)	$	(17.22	)	$	(37.72	)
已停止的營運		20.04			1.27			23.80			5.66
總計	$	15.06		$	(8.01	)	$	6.58		$	(32.06	)

加權平均流通股數:
基本和攤薄		1,143			415			986			393

請參閱簡明綜合財務報表附註。

基礎全球貨幣公司。

簡明合併綜合損失表

(以千爲單位)

(未經審計)

	2024			2023			2024			2023
	截至三個月 9月30日,						截至九個月 9月30日,
	2024			2023			2024			2023

淨利潤（損失）	$	17,659		$	(3,325	)	$	7,289		$	(12,705	)
調整養老福利責任		(72	)		(4	)		(79	)		(13	)
貨幣翻譯調整：
期間未實現的淨變動		-			(246	)		(659	)		240
所有其他綜合虧損收益淨額		(72	)		(250	)		(738	)		227
綜合收益（損失）	$	17,587		$	(3,575	)	$	6,551		$	(12,478	)

請參閱簡明綜合財務報表附註。

基礎全球貨幣公司。

簡明合併股東權益表

(未經審計)

(以千爲單位)

	流通股數		金額		流通股數			金額			實收資本			（累積赤字）			庫藏股			綜合損失			股東權益			控制性權益			股東權益
	優先股				普通股						額外的			留存收益						累計其他			總計基本面的全球			非-			總計
	流通股數		金額		流通股數			金額			實收資本資本			（累計赤字）			國庫股票			綜合虧損			股東權益股權			控股利息			股東權益股權

2023年12月31日餘額		-	$	-		900		$	225		$	55,856		$	2,336		$	(18,586	)	$	(4,682	)	$	35,149		$	1,858		$	37,007
退休庫存股		-		-		(112	)		-			(18,586	)		-			18,586			-			-			-			-
FGH普通股的交易		-		-		(789	)		(225	)		225			-			-			-			-			-			-
合併日尚未兌現的FGF優先股和普通股		895		22,365		458			11			15,576			-			-			-			37,952			-			37,952
合併前FGH持有的FGF普通股的退休		-		-		(111	)		(3	)		(3,692	)		-			-			-			(3,695	)		-			(3,695	)
與合併相關的普通股發行		-		-		787			20			-			-			-			-			20			-			20
非控制權益分配		-		-		-			-			(17	)		-			-			-			(17	)		17			-
A類優先股股息分紅（$0.25 每股）		-		-		-			-			-			(69	)		-			-			(69	)		-			(69	)
淨虧損		-		-		-			-			-			(4,428	)		-			-			(4,428	)		(17	)		(4,445	)
淨其他綜合損失		-		-		-			-			-			-			-			(437	)		(437	)		(56	)		(493	)
基於股票的補償		-		-		-			-			327			-			-			-			327			-			327
2024年3月31日結存餘額		895		22,365		1,133			28			49,689			(2,161	)		-			(5,119	)		64,802			1,802			66,604
淨虧損		-		-		-			-			-			(5,782	)		-			-			(5,782	)		(143	)		(5,925	)
淨其他綜合損失		-		-		-			-			-			-			-			(149	)		(149	)		(24	)		(173	)
非控制權益分配		-		-		-			-			(61	)		-			-			-			(61	)		61			-
限制性股票的授予		-		-		6			1			(22	)		-			-			-			(21	)		-			(21	)
Series A優先股股息（$0.25 每股）		-		-		-			-			-			(447	)		-			-			(447	)		-			(447	)
基於股票的補償		-		-		-			-			398			-			-			-			398			-			398
2024年6月30日餘額		895		22,365		1,139			29			50,004			(8,390	)		-			(5,268	)		58,740			1,696			60,436
淨利潤		-		-		-			-			-			17,659			-			-			17,659			-			17,659
淨其他綜合損失		-		-		-			-			-			-			-			(72	)		(72	)		-			(72	)
與Strong/MDI出售相關的累積翻譯調整發布		-		-		-			-			-			-			-			6,854			6,854			-			6,854
Strong全球娛樂的剩餘股份收購		-		-		116			-			-			-			-			-			-			(1,696	)		(1,696	)
限制性股票的授予		-		-		9			-			26			-			-			-			26			-			26
A優先股份的股息 ($0.25 每股）		-		-		-			-			-			(447	)		-			-			(447	)		-			(447	)
基於股票的補償		-		-		-			-			440			-			-			-			440			-			440
2024年9月30日的結餘		895	$	22,365		1,264		$	29		$	50,470		$	8,822		$	-		$	1,514		$	83,200		$	-		$	83,200

	優先股				普通股				額外的									累計其他			總計			非-			總計
	流通股數		金額		流通股數		金額		實收資本資本			留存收益			庫藏股			綜合虧損			股東權益股權			控股利息			股東權益股權

2022年12月31日的餘額		-	$	-		891	$	223	$	53,882		$	16,437		$	(18,586	)	$	(5,258	)	$	46,698		$	-		$	46,698
會計原則採納的累計效應		-		-		-		-		-			(24	)		-			-			(24	)		-			(24	)
淨虧損		-		-		-		-		-			(3,989	)		-			-			(3,989	)		-			(3,989	)
淨其他綜合損失		-		-		-		-		-			-			-			(77	)		(77	)		-			(77	)
基於股票的補償		-		-		-		-		127			-			-			-			127			-			127
2023年3月31日的餘額		-		-		891		223		54,009			12,424			(18,586	)		(5,335	)		42,735			-			42,735
淨虧損		-		-		-		-		-			(5,273	)		-			-			(5,273	)		(118	)		(5,391	)
淨其他綜合損失		-		-		-		-		-			-			-			566			566			(12	)		554
Strong Global 娛樂公司的首次公開募股及發放地標認股權證，扣除成本後		-		-		-		-		1,383			-			-			-			1,383			225			1,608
非控制權益分配		-		-		-		-		(1,147	)		-			-			-			(1,147	)		1,147			-
淨份額結算股權獎勵代扣稅款支付		-		-		-		-		(104	)		-			-			-			(104	)		-			(104	)
基於股票的補償		-		-		-		-		910			-			-			-			910			-			910
2023年6月30日的餘額		-		-		891		223		55,051			7,151			(18,586	)		(4,769	)		39,070			1,242			40,312
資產負債表		-		-		891		223		55,051			7,151			(18,586	)		(4,769	)		39,070			1,242			40,312
淨虧損		-		-		-		-		-			(3,321	)		-			-			(3,321	)		(4	)		(3,325	)
淨利潤損失		-		-		-		-		-			(3,321	)		-			-			(3,321	)		(4	)		(3,325	)
淨其他綜合損失		-		-		-		-		-			-			-			(209	)		(209	)		(41	)		(250	)
限制性股票的授予		-		-		9		2		(2	)		-			-			-			-			-			-
與收購Unbounded相關的SGE普通股發行		-		-		-		-		933			-			-			-			933			273			1,206
非控制權益分配		-		-		-		-		(647	)		-			-			-			(647	)		647			-
淨份額結算股權獎勵代扣稅款支付		-		-		-		-		(39	)		-			-			-			(39	)		-			(39	)
基於股票的補償		-		-		-		-		378			-			-			-			378			-			378
2023年9月30日的餘額		-	$	-		900	$	225	$	55,674		$	3,830		$	(18,586	)	$	(4,978	)	$	36,165		$	2,117		$	38,282
資產負債表		-	$	-		900	$	225	$	55,674		$	3,830		$	(18,586	)	$	(4,978	)	$	36,165		$	2,117		$	38,282

請參閱簡明綜合財務報表附註。

基礎全球貨幣公司。

合併合併現金流量表

(未經審計)

(以千爲單位)

	2024			2023
	截至9月30日的九個月
	2024			2023
經營活動現金流量：
持續經營的淨損失	$	(16,168	)	$	(14,927	)
調整淨虧損以使經營活動產生的現金淨流量：
股權持有的未實現持倉損失		2,267			5,514
權益法下的持有的虧損		8,896			4,362
ICS資產收購的調整收益		69			-
股權持有的淨實現收益		(550	)		-
應收賬款準備		56			22
來自淘汰存貨的好處		(20	)		(46	)
保修費用撥備		8			4
折舊和攤銷		638			584
營運租約的攤銷和累積計值		215			88
財產和設備的減值		1,422			-
FGF與FGF合併的收益（注3）		(1,831	)		-
遞延所得稅		(462	)		455
股票補償費用		1,165			1,415
運營資產和負債的變化：
再保險餘額應收款		(528	)		-
遞延保單獲取成本		(176	)		-
其他資產		1,186			(1,648	)
損失和賠償準備金		2,164			-
未賺保費準備金		(2,704	)		-
應收賬款		(261	)		(508	)
存貨		(47	)		231
應交所得稅		(30	)		(402	)
應付賬款和應計費用		1,752			3,901
遞延營收和客戶存款		29			(595	)
營運租賃義務		(174	)		(98	)
經營活動產生的現金流量淨額（繼續經營）		(3,084	)		(1,648	)
來自已停止營運業務的營業活動淨現金流量		(664	)		(1,778	)
經營活動現金淨額		(3,748	)		(3,426	)

投資活動現金流量：
資本支出		(52	)		(139	)
股票出售收益		2,331			198
出售固定資產的收益		6,161			-
應收票據的收集		50			-
FGF和FGH合併中獲得的現金		1,903			-
持續經營的投資活動提供的淨現金流量		10,393			59
已停用投資活動產生的淨現金流出		(94	)		(678	)
投資活動產生的淨現金流量		10,299			(619	)

融資活動的現金流：
優先股股利支付		(1,341	)		-
短期債務本金償還		(227	)		(398	)
長期債務的支付款項		(5,124	)		(152	)
信貸額度下的淨借款		39			-
強勁全球娛樂首次公開募股所得		-			2,411
淨份額結算股權獎勵代扣稅款支付		(20	)		(131	)
融資租賃義務支付		(184	)		(109	)
持續經營的融資活動淨現金流量（流入）		(6,857	)		1,621
已停止經營業務的籌資活動提供的淨現金（使用的現金）		525			2,027
籌資活動的淨現金流量(使用)/提供的淨現金流量		(6,332	)		3,648

匯率變動對持續經營現金及現金等價物的影響		13			(15	)
匯率變動對停止經營現金及現金等價物的影響		(36	)		95
持續經營活動產生的現金和現金等價物淨增加（減少）		465			17
已停用現金和現金等價物淨減少		(269	)		(334	)
現金及現金等價物的淨增加（減少）		196			(317	)

持續經營活動產生的現金及現金等價物期初餘額		5,995			3,063
持續經營活動產生的現金及現金等價物期末餘額	$	6,460		$	3,080

請參閱簡明綜合財務報表附註。

基礎全球貨幣公司。

合併財務報表附註

註釋1. 業務描述業務性質

基礎全球貨幣公司（「基礎全球」，或「公司」，或「我們」），原名 FG金融集團公司（「FGF」），從事再保險、資產管理/商業銀行和管理服務。

二月二十九日，FGF和FG Group Holdings, Inc.（"FGH"）完成了合併計劃，將兩家公司以全股票交易方式合併（"合併"）。與此合併相關，FGH普通股股東將收到一股FGF普通股，作爲其持有的FGH普通股的每一股的交易。合併完成後，合併公司更名爲 Fundamental Global，合併公司的普通股和A系列累積優先股仍在納斯達克證券交易所（"納斯達克"）上以"FGF"和"FGFPP"代碼交易。有關更多詳情，請參閱附註3。

2024年5月3日，強勁全球娛樂股份公司（「強勁全球娛樂」）與FG收購公司，一家特殊目的收購公司（「FGAC」），強力/MDI屏幕系統有限公司（「強力/MDI」），FGAC投資者有限責任公司和CG投資公司第7號有限公司簽署了一項收購協議（「收購協議」）。該交易於2024年9月25日關閉。作爲交易結束的一部分，FGAC更名爲Saltire控股有限公司（「Saltire」），並Saltire收購了該公司全資子公司強力/MDI的全部流通股。因此，強力/MDI成爲Saltire的全資子公司。有關更多詳細信息，請參閱附註4。

2024 年 5 月 30 日，公司和斯特朗環球娛樂公司，一家運營公司，我們在其中持有大約 76簽訂最終安排協議的A類普通股的百分比以及將兩家公司合併成全股交易的安排計劃（「安排」）。安排完成後, Strong Global Entertainment的股東每持有斯特朗環球娛樂公司獲得1.5股普通股。該交易於 2024 年 9 月 30 日完成。收盤後，Strong Global Entertainment不復存在，其普通股也不復存在已從紐約證券交易所美國有限責任公司「（美國紐約證券交易所」）退市，並根據1934年《證券交易法》（「交易所」）註銷註冊法案”）。由於該公司是強環球娛樂的大股東，因此斯特朗環球娛樂的財務業績在公司的簡明合併財務報表中合併列報。在「安排」之前的時期, 該公司報告了Strong Global Entertainment的非控股權益，該股權是獨立於公司的股權的一部分公平。該公司的淨虧損不包括歸屬於非控股權益的淨虧損。

在2024年10月10日，公司董事會批准以1比25的比例進行反向股票拆分（「反向股票拆分」）。反向股票拆分於2024年10月31日（「生效日期」）下午5:00生效，東部時間。公司的普通股於2024年11月1日交易開始時以拆分調整後的基礎開始交易。所有在反向股票拆分之前即將到期的股權獎勵已根據反向股票拆分進行調整。因此，本季度報告表格10-Q（「表格10-Q」）中對公司普通股的所有引用均已調整以反映反向股票拆分。

業務部分

公司通過其三個可報告的業務部門進行業務，包括再保險、商業銀行和管理服務。運營部門是根據業務活動確定的，並反映了管理層目前評估財務信息的方式。

再保險

該公司的全資再保險子公司，FG Reinsurance Ltd（「FGRe」），是一家開曼群島的有限責任公司，提供專業的財產和意外再保險。FGRe已根據開曼群島的《保險法》（經修訂）及其相關法規獲得了b（iii）類保險公司執照，並受到開曼群島貨幣管理局（「管理局」）的監管。該執照的條款要求FGRe在希望簽訂未完全抵押的再保險協議時，需提前獲得管理局的批准。

截至2024年9月30日，公司擁有八個活躍的再保險合同，包括參與勞埃德（Lloyds）基金（Funds should be translated as 所有基金類型）辛迪加，覆蓋辛迪加在2021年、2022年和2023年日曆之間編寫的風險。

商戶銀行

我們通過FG管理解決方案有限責任公司（「FGMS」）管理我們的商業銀行和資產管理活動，以前稱爲FG SPAC解決方案有限責任公司。商業銀行服務包括向新成立的spac上市公司（我們的spac平台）提供各種戰略、行政和監管壓力位服務。此外，公司共同創立了一個夥伴關係FG商業夥伴，LP（「FGMP」），以前稱爲FG SPAC夥伴，LP，作爲新成立的spac上市公司和其他商業銀行客戶的共同贊助商參與。

此外，我們的商業銀行部門幫助啓動了幾家公司，包括FG社區公司（「FGC」），這是一家自我管理的房地產業公司，專注於不斷增長的製造住房社區投資組合，這些社區由FGC擁有和運營，以及Craveworthy LLC（「Craveworthy」），一家創新的快餐餐廳平台公司。

託管服務

我們全資子公司強技術服務公司（「STS」）在娛樂行業領先，已經爲電影院放映商和娛樂場所提供關鍵產品和服務超過90年。STS提供全面的管理服務，提供全國範圍內24小時/每天/365天的壓力位，以確保解決方案的正常運行和可用性。

其他

公司擁有並運營其位於佐治亞州阿爾法雷塔的數字引擎科技孵化器和合作辦公設施。2024年第一季度，公司董事會授權出售數字引擎，在2024年4月16日，公司完成了數字引擎大樓和全資子公司的出售，銷售所得爲$6.5 百萬。2024年4月，公司獲得了約1.3 百萬現金，扣除了收盤費用和償還款項。與土地和建築物的出售相關，公司在2024年第一季度記錄了約1.4 百萬非現金減值損失，以調整資產的賬面價值至公平市場價值減去銷售成本。

其他還包括未分配的一般管理費用。

注 2. 重要會計政策

表述基礎

合併的基本報表包括公司及所有控股和控制的國內外子公司的帳戶。所有重大內部公司餘額和交易在合併中已被消除。除非上下文另有說明，提及的「公司」包括公司及其控股和控制的國內外子公司。

本報告中包含的簡明綜合財務報表是根據10-Q表格的要求編制的，因此不包括美國通用會計準則（也稱爲「GAAP」）年度報告要求的所有披露，也不包括該公司年度報告中所做的披露。這些簡明綜合財務報表應當連同截至2023年12月31日的財政年度的年度報告中包括的綜合財務報表和附註一起閱讀。

由於FGF與FGH的反向合併（見註釋3），合併前期間的簡明合併基本報表代表了FGH的結果，FGH爲會計收購者。合併後的期間，簡明合併基本報表代表了FGH與FGF的綜合結果。此外，Strong Studios, Inc.（"Strong Studios"）和Strong/MDI, Inc. 的當前和歷史財務結果被列爲終止運營，並在隨附的簡明合併基本報表中被排除在持續經營的結果之外。

2023年12月31日的精簡綜合資產負債表來源於公司日期的審計綜合資產負債表。此處包含的所有其他精簡綜合財務報表未經審計，並且在管理層的意見中，反映了爲呈現財務狀況、業務結果和現金流的公允表述所必需的所有常規性調整。某些往期餘額已重新分類以符合當前期的呈現。中期結果未必代表全年預期的趨勢或結果。

有關FGF和FGH的合併及倒置收購導致的會計處理，請參閱附註3。

除非另有說明，所有對「美元」和「$」的引用均爲美元，且金額以美國美元表示。

管理估計的使用

根據GAAP編制合併基本報表要求管理層做出影響報告的資產和負債金額及披露合併基本報表日期的或有資產和負債的估算和假設，以及在報告期間報告的收入和費用的金額。實際結果和事實與情況的變化可能會改變這些估算，並影響未來期間的經營結果和財務狀況。估算及其基礎假設會持續進行檢查。估算的變更會被記錄在確定的會計期間內。

整合政策

所附的合併基本報表包括公司及其子公司的賬目。所有重要的公司間餘額及交易在合併時已被消除。

合併基本報表包括公司及其根據Variable Interest Entity（"VIE"）或Voting Interest Entity（"VOE"）模型必須進行合併的實體的帳戶。兩種模型都要求報告主體確定其是否對法律實體具有控股財務利益，因此必須對法律實體進行合併。根據VOE模型，通常認爲控股財務利益的報告主體對法律實體擁有大部分表決權。VIE模型是爲了那些控制可能通過除在法律實體中擁有表決權之外展示的情況而設立的，它着重於能夠指導最顯著影響法律實體經濟績效的活動的能力，以及獲益權和承擔損失義務的權利，這些權利和義務可能對法律實體具有潛在重要性。

對於法律實體是否根據任何一個模式合併的確定，在該實體的管理文件或合同安排出現實質性變化，以及對該實體的資本結構或活動出現變化時重新評估。管理層持續重新評估是否應根據任何一個模式合併。

公司的非合併VIEs的損失風險是有限的。截至2024年9月30日，公司的非合併VIEs的賬面價值和最大損失暴露爲$11.9 百萬美元。

請參閱註釋5，以獲取有關公司在股票證券和其他持有資產方面的進一步信息。

持有股票證券及其他持有

持有的除應用權益法覈算的證券以及沒有 readily determinable 公允價值的其他股票以外的股票，按公允價值計量，公允價值的後續變化作爲淨持有收益的一部分記錄在濃縮合並損益表中。

其他持股部分包括對私營公司的股權投資，這些投資是使用權益法進行會計覈算的。當我們擁有對被投資公司運營和財務政策的重大影響能力，但不控制時，我們會使用權益法覈算持股。當持有者擁有被投資公司投票權的超過的百分比時，通常假定其擁有顯著影響能力。根據具體事實和情況，這種假設可能會被推翻，以證明顯著影響能力受到限制。我們將權益法應用於普通股持有以及其他持有，當這些其他持有與普通股的次等權益實質上相同。 20當這些其他持有與普通股的次等權益實質上相同。

在應用權益法時，我們按成本記錄持股，隨後根據我們對被投資方淨收益或損失及其他全面收益的比例份額增加或減少持股的賬面金額。我們將分紅派息或其他股權分配作爲持股賬面價值的減少。如果被投資方的淨損失使持股的賬面金額降至零，如果我們在被投資方的其他持股存在風險，即使我們沒有承諾爲被投資方提供財政支持，仍然可以記錄額外的淨損失。這些額外的權益法損失（如有）是基於我們對被投資方賬面價值的索賠變化。

在我們從股權法下持有的股權投資中獲得分配時，我們採用累積盈利法。在根據此方法分類相關現金流時，公司將累積收到的分配款與先前期間收到的分配款相減，與公司的累積股權盈利進行比較。不超過累積股權盈利的累積分配代表持有收益，並被分類爲經營活動現金流入。超過累積股權盈利的累積分配代表持有收益，並被分類爲投資活動現金流入。

除了根據權益法會計覈算的持股外，其他持股還包括我們在有限合夥、有限責任公司和沒有可立即確定公允價值的公司中購買的股權。公司按照這些持股的成本減去減值（如果有的話），再加上或減去由於相同或類似資產的可觀察價格變動而導致的變化進行會計處理。當公司觀察到被投資方的相同或類似股權證券的有序交易時，公司會根據交易日期的可觀察價格調整賬面價值。一旦公司記錄了這種調整，該持股被視爲按公允價值計算的資產，且該計算爲一次性基礎。公司在這些持股上收到的任何利潤分配均計入淨持股收入。

請參見註釋5以獲取有關公司的持股的額外信息。

現金及現金等價物

現金及現金等價物包括現金和期限在90天或以下的短期、高流動性的金融工具。

根據公司的保險許可證，監管機構要求FGRe持有最低資本要求爲$200,000 在開曼群島的銀行中以現金持有，銀行必須持有根據《銀行和信託公司法》(2020年修訂)頒發的「A」級許可證。

所得稅

公司遵循資產和負債法覈算所得稅，根據該方法，確認遞延所得稅資產和負債，主要包括(i)現有資產和負債的財務報表賬面價值與其各自的稅基之間的差異，以及(ii)損失和稅收抵免的結轉。遞延所得稅資產和負債的計量使用預期適用於應納稅所得額的法定稅率，這些臨時差異將在預計的未來年份內得到回收或結清。稅率變更對遞延所得稅資產和負債的影響在包括法律生效日期的期間內確認到收入中。未來的稅收收益在實現這些收益的可能性大於不可能的情況下確認，併爲管理層認爲不可能實現的任何部分遞延稅收資產建立估值準備。根據當前年度的應納稅業務預計應支付或可回收的金額，對當前聯邦所得稅進行計入或抵消。公司在所得稅費用（收益）中確認任何與未確認稅收收益相關的利息和罰款。

信貸風險集中

公司在權益證券和其他資產、現金、應收賬款以及與再保公司存款方面，可能會使公司面臨信用風險的財務工具。公司將其現金存放在一家由美國主要銀行機構，該機構受到聯邦存款保險公司（FDIC）保險，最高可達$250,000截至2024年9月30日，公司持有超過這些FDIC保險金額的資金。這些存款的條款爲按需存取，以減少部分相關風險。公司未因這些存款而產生損失。公司向許多不同地理區域的大量客戶銷售產品。爲減少與應收賬款相關的信用風險，公司定期評估客戶的財務狀況。

公司的前十大客戶約佔合併產品和服務收入的 43%和 40交易賬款帳戶從這些客戶處應收約佔截至2024年9月30日的淨合併應收的 59位列公司前十的客戶在2024年9月30日結束的三個月和九個月內分別佔其合併淨收入的 10百分之三十且在2024年9月30日的合併淨應收款中擁有逾百分之三十的客戶。雖然管理層認爲與這些客戶的關係穩定，但大多數安排是通過訂購單執行的，並可由任意一方隨意終止。公司重要客戶業務出現顯著減少或中斷可能對公司的業務、財務狀況和運營結果產生重大不利影響。公司還可能受到外匯匯率變化以及公司銷售產品和提供服務的各國經濟和政治狀況疲弱等因素的不利影響。

產品和服務的營業收入確認

公司通過以下步驟確認營業收入：

	●	判斷與客戶之間的合同或合同；
	●	確定合同中的履行義務；
	●	確定交易價格；
	●	將交易價格分配給確定的履約義務；和
	●	公司在履行績效義務時或以其滿足績效義務時確認營業收入。

公司將與同一客戶簽訂的合同綜合爲一個合同，以便進行會計處理，前提是這些合同是在相同時間或附近簽訂，並且這些合同是作爲一個單一商業套餐進行協商的，一個合同的對價取決於另一個合同，或者這些服務被視爲單一履約義務。如果一個安排涉及多個履約義務，將分析各項以判斷是否可以單獨計算，這些項目在單獨基礎上是否具有價值，以及是否有單獨銷售價格的客觀可靠證據。根據各履約義務的相對單獨銷售價格，將總合同交易價格分配給確定的履約義務。單獨銷售價格基於服務銷售給其他可比客戶的可觀察價格，如果有的話，或者基於成本加適當利潤幅度的預計銷售價格。管理層通過確定我們希望從安排中獲得的最有可能的金額來估計公司預計從可變安排中獲得的總合同對價金額，該估計基於公司預期提供的服務數量及基於這些數量的合同定價。公司僅在存在顯著累積確認收入金額不會發生重大反轉或者隨後解決與可變對價有關的不確定性時，才在交易價格中包含一些或部分可變對價。管理層考慮了估計的敏感性，公司與客戶之間的關係和經驗以及正在完成的可變服務，可能收入金額的範圍，以及對整個安排的可變對價的重要程度。

如下詳細討論，營業收入是在客戶根據合同條款取得承諾的貨物或服務的控制權時確認的，並且被衡量爲公司預計爲轉讓貨物或提供服務而期望收到的對價數量。公司通常不具有任何實質性的延長付款條款，因爲付款應在銷售時或短時間後到期。與營收活動同時收取的銷售、增值稅和其他稅款不計入營業收入。

公司確認與已完成但尚未開票的服務相關的合同資產或未開票應收款。當我們有無條件的合同款項權利時，未開票應收款被記錄爲應收賬款。當我們向客戶開具發票或在執行相關服務之前收到現金時，確認合同負債爲遞延收入。當我們滿足相關履約義務時，遞延收入確認作爲營業收入。

公司延遲成本以獲取合同，包括佣金、激勵和工資稅，如果它們是可補償的成本，以獲取超過一年的客戶合同。延遲合同成本報告在其他資產內，並在合同期內分期攤銷至銷售費用，一般範圍爲一到五年。公司選擇在發生時將合同期不超過一年的合同的增量成本確認爲銷售費用。截至2024年9月30日或2023年12月31日，公司沒有任何延遲的合同成本。

高級營業收入確認

公司參與配額分享合同，並估計合同期間的最終保費。這些估計是基於從傳統公司收到的信息，根據簽單人提供的分保報表記錄保費，這些保費記錄的時間與基礎保險合同簽訂的時間相同，並基於在滯後期間收到的轉讓聲明。這些報表每季度滯後收到，因此，對於任何報告滯後，編制的保費是根據與滯後期間承保的風險相關的最終估計保費部分估算的。

保險費估計定期由管理層審查。此審查包括將實際報告的保險費與預期的保險費進行比較。根據管理層的審查，評估了保險費估計的適當性，並記錄了這些估計的任何調整。保險費估計的變化，包括應收保險費，都並非飛凡情形，可能導致任何期間的重大調整。公司合併資產負債表中「應收再保險餘額」項目中包含的大部分金額代表預估的淨保險費，扣除佣金、券商費用和損失及賠償費用，並根據基礎合同條款目前不應收。對於合同上沒有剩餘覆蓋期的附加保險費，在簽訂時即全額計入收入。

保費通常在合同期內按所承保風險的比例確認爲已賺取。未賺取的保費代表提供再保險的未到期部分。

當前預期信用損失

在2023年第一季度，公司採用了修訂版的ASU 2016-13，即金融工具-信用損失（"ASU 2016-13"），要求實體估計其終身「預期信用損失」，並記錄一個準備金，該準備金在從金融資產的攤銷成本基礎中扣除時，顯示出預計從金融資產中收回的淨金額。

公司合併資產負債表中包含的「再保險應收餘額」的財務資產按攤銷成本計量，因此受到ASU 2016-13的影響。管理層通過應用「違約概率/違約損失比」模型，爲其再保險應收餘額計提預期信用損失準備金。該模型考慮了外部回款歷史以及外部損失歷史。管理層利用的外部損失歷史包括針對保險公司的長期清算概率研究。此外，公司每份再保險條約的存續期也會被考慮，因爲違約概率是根據再保險合同的約定期限來計算的。通過考慮獨立機構分配的信用評級並對所有交易對手進行單獨評估來評估交易對手的信用價值。公司每個季度更新該模型並相應調整餘額。在2024年第三季度，準備金沒有發生變化。

在2023年第一季度，公司分配了$200,000 用於一張本票。該本票在公司合併資產負債表下以攤銷成本計量，列示在「其他股權證券和其他持有資產」項下。由於以攤銷成本計量，該本票屬於ASU 2016-13的範圍。由於不重大，公司沒有針對該本票的當前預期信用準備。

交易應收賬款按照發票金額記錄，不計利息。公司根據多種因素確定信用損失準備，包括客戶整體信用質量、歷史覈銷經驗以及具體分析，預測帳戶的最終收回能力。因此，這些因素可能隨時間改變，導致準備水平和壞賬費用相應調整。逾期帳戶在我們未成功收款的努力後將被覈銷。

遞延政策獲取成本

政策獲得成本是指與再保險合同的新生產和續訂直接相關且隨之變化的成本，主要包括佣金、稅費和券商費用。如果合同的預期損失及損失費用和遞延獲得成本的總和超過相關的未賺取保費和預期持有收入，則確定存在保費不足。在這種情況下，遞延獲得成本將被沖銷，以消除保費不足的程度。如果保費不足超過遞延獲得成本，則需爲超出部分計提負債。在此期間未確認任何保費不足的調整。

所有基金類型存入以惠及再保險公司

公司合併資產負債表上的「存放於再保險公司的資金」包括用於支持我們再保險合同的金額。截至2024年9月30日，用於支持所有再保險條約的現金按金總額約爲$8.4 百萬美元的淨收益。

損失和損失調整費準備金

公司保留的儲備金等於我們對分保業務中已報告和未報告索賠的損失和賠償費用的最終估計。損失和賠償費用準備金的估計主要基於公司從分保公司收到的報告所得出的估計。公司隨後使用各種統計和精算技術來監測準備金的充足性。在設定準備金時，公司考慮了許多因素，包括：(1)再保公司預計要承保的風險類型和最終預期保費；(2)各業務類型的預期損失率；(3)精算方法，分析損失報告和支付經驗、分保公司的報告和歷史趨勢；以及(4)一般經濟情況。公司還至少每年聘請獨立精算專家，協助管理層確定適當的準備金。由於準備金是估計值，最終損失結算可能會有所偏差，任何可能對估計值進行的可能重大調整都會記錄在確定的期間內。最終損失的結算可能會有所偏差，甚至可能相當大，與記錄的準備金相比。

根據GAAP的規定，不得建立損失準備金，其中包括事故準備金和已發生但未報告的損失準備金，直到可能導致索賠的事件發生爲止。因此，只有與截止日期前發生的損失相關的損失準備金才建立，不允許建立損失準備金以應對預期的未來損失事件。

通常，公司會定期獲得與保費和損失相關的信息更新，包括當前和歷史時期，這些信息用於公司更新最初的預期損失比率。這些來自分出公司的報告有不同的截止日期，可能在報告期結束後的三十到九十天之間收到。我們經歷一個延遲，即(i)由被保險人報告的索賠到公司分出方，以及(ii)由公司分出方報告的索賠到公司。這個延遲可能會影響公司的損失準備金估計。報告要求的時間安排設計得如此，以便在客戶關賬後儘快收到保費和損失信息。因此，這種報告通常會有一到三個月的延遲。大多數合同中存在可能導致大額單一事件損失的條款，要求在事件發生時立即向公司提供該損失通知。

股份支付

該公司根據ASC第718期的規定對股票薪酬進行了覈算 - 股票酬勞， 該規定要求使用公允價值基礎方法來判斷所有安排的薪酬，其中員工及其他人士可獲得股票或股權工具。每個股票期權獎勵的公允價值在授予日通過使用Black-Scholes估值模型進行估算，使用關於預期波動率、預期分紅派息、預期期限和無風險利率的假設，並通過多個蒙特卡洛模擬來判斷服務期限，因爲期權根據滿足特定績效條件而歸屬。每個股票期權獎勵的公允價值作爲薪酬費用在必要的服務期內按直線法計入，通常是期權歸屬的期間，並相應增加額外的實收資本。

公司還向部分員工和董事發行了受限股票單位（「RSUs」），因爲在實現合格條件後，這些RSUs需要以公司普通股結算，我們已使用發行RSUs日當天的公司普通股公允價值來估算僅基於時間推移實現的RSUs的授予日公允價值，每個RSU的公允價值作爲補償費用在必要的服務期內確認，通常是預期授予條件實現期。

根據公司歷史股票期權和限制性股票單位(RSUs)的放棄率，截至2024年9月30日，公司未對預期放棄調整股票薪酬支出。

金融工具的公允價值

包括現金、應收賬款、短期持有、存款、應付賬款、其他應計費用和短期債務在內的某些金融工具的賬面價值，由於其短期性質，大致等於公允價值。公司根據通用會計準則衡量金融工具的公允價值，通用會計準則將公允價值定義爲在資產（或負債）的主要或最有利市場上，在計量日期與市場參與方之間進行的有序交易中將收到的交易價格（或爲了轉移負債而支付的價格）。通用會計準則還建立了一個公允價值層次結構，要求實體在衡量公允價值時最大程度地利用可觀察輸入並最小程度地利用不可觀察輸入。公司的短期債務記錄爲歷史成本。有關公司金融工具公允價值的進一步信息，請參閱附註5。

租賃

公司及其子公司目前租用植物、辦公設施和設備，這些租賃期限分別爲到2027年。公司在合同成立或修改時確定合同是否爲租賃合同。如果合同爲或包含租賃，則合同傳達了在一段時間內以交換對使用識別資產的控制權。對識別資產的使用控制，意味着承租方同時具有(a)獲得資產使用的幾乎所有經濟利益的權利和(b)指導資產使用的權利。

根據租賃期開始日期起未來最低租金的現值，確認租賃資產和負債。部分租賃包含續期期權；然而，公司未將此類期權納入其租賃資產和租賃負債，因爲公司預計不會延長租約。公司根據已知的租賃內含利率計量和記錄租賃資產和租賃負債。對於未知的租賃內含利率的情況，公司使用與公司估計的具有類似抵押品和期限的貸款的預期較高借款利率計量租賃資產和租賃負債。

公司決定不在開始日具有12個月或更短租期且不包括承租方有合理把握會行使購買選項的所有基礎資產的租賃上適用會計準則編碼主題842「租賃」的確認要求。反而，此類短期租賃的租金將在租賃期間按直線方式確認爲營運成本，並在發生這些付款義務的期間確認變量租金付款。

公司作爲承租人選擇，針對所有類別的基礎資產，不將非租賃元件與租賃元件區分開來，而是將每個獨立租賃元件及與該租賃元件關聯的非租賃元件視爲一個單獨的租賃元件進行覈算。

每普通股收益（虧損）

基本每股收益（損失）是根據各自期間內流通在外的加權平均股數計算的。

每股攤薄收益（虧損）假設所有潛在攤薄的在外可轉換的股票期權、限制性股票單位、認股權證或其他可轉換金融工具均已轉換。如果這些潛在的普通股未來可能帶來抵減效應，則不會將潛在普通股計入攤薄每股收益（虧損）的計算中。

最近發佈的會計準則

在 2023年11月，金融會計準則委員會（「FASB」）發佈了ASU 2023-07，部門報告（主題280）：報告部門披露的改進，要求增加每個可報告部門的重大費用的披露，以及某些其他披露，以幫助投資者了解首席運營決策者（「CODM」）如何評估部門費用和運營成果。新的標準還將允許披露多個部門盈利能力的衡量指標，如果這些指標被用於資源分配和績效評估。修訂將在2023年12月15日之後開始的財政年度對上市公司生效，並在2024年12月15日之後開始的財政年度的中期內生效。允許提前採用。管理層目前正在評估此會計標準更新對我們合併基本報表的影響。

在2023年12月，FASB發佈了ASU 2023-09，關於收入稅披露的改善（"ASU 2023-09"）。ASU 2023-09要求披露有關報告實體有效稅率調節的分項信息以及支付的所得稅的額外信息。ASU 2023-09將自2024年12月15日之後開始的年度期間有效，並允許提前採用。ASU 2023-09不會影響公司基本報表中記錄的金額，而是會要求在基本報表附註中提供更詳細的披露。公司計劃在ASU 2023-09生效期間提供所需的更新披露。

注3。FGF和FGH的合併

在2024年2月29日，FGF和FGH完成了一項合併交易，根據該交易，FGH的普通股股東每持有一股FGH普通股即可獲得一股FGF普通股。

此次合併涉及兩個業務之間的控股變更，並按照ASC 805《企業組合》進行了作爲反向收購的核算。當發行證券的實體（法定承購人）被確定爲會計目的所需的被收購方，而被收購資產權益的實體（法定收購人）則被確定爲會計目的所需的收購方時，就會發生反向收購。FGH被確定爲會計承購方。

根據ASC 805，收購方在收購日以公允價值計量所識別的資產和負債。公司確定截至2024年2月29日FGF資產和負債的公允價值約爲$17.4 百萬。在反向收購中，通常法律收購方（會計收購方）在交易中會發行對價。因此，轉移的對價的公允價值是基於會計收購方（法律收購方）需要向法律收購方（會計收購方）發行的股權數量，以便在反向收購後提供相同的股權比例。管理層確定總對價爲$15.6 百萬，這導致了$1.8 百萬的廉價購買收益。管理層評估了廉價購買收益，並重新審視合併中所收購的單獨資產和假設的負債的價值，並確定沒有必要對資產的公允價值進行降低或對假設的負債的公允價值進行增加的調整。

下表總結了作爲併購的一部分獲得的淨資產和承擔的負債分配的公允價值（以千爲單位）：


現金及現金等價物	$	1,903
遞延保單獲取成本		1,764
再保險餘額應收款		19,011
股票及其他持有		28,769
應收票據		300
存放在再保公司的基金類型		8,055
使用權資產		36
物業和設備，淨值		27
其他流動資產		884
已取得的可識別資產總額		60,749

應付賬款和應計費用		1,133
損失和賠償準備金		9,036
未賺保費準備金		10,744
租賃運營義務		36
承擔的總負債		20,949

A輪優先股		22,365

已收購淨資產	$	17,435

獲得的淨資產的價值超過了購買價格，約爲$1.8百萬。因此，公司在截至2024年3月31日的季度內確認了購買外的收益，該收益記錄在合併簡明財務報表中的購買外收益和其他（費用）收入中。

根據ASC 805的規定，企業合併中的收購方有一個時間段，稱爲計量期，以最終確定企業合併的會計處理。計量期爲公司提供了一個合理的時間段，以判斷所收購的可識別的有形和無形資產的價值、承擔的負債以及轉移給被收購方的對價。計量期在收購方收到關於收購日期存在的所有必要信息時結束（或了解到更多信息無法獲得時）；然而，計量期不能超過自收購日期起的一年。管理層正在最終確定收購價格，該價格仍可能會有所變動。

FGF收入和利潤的金額，包括公司從收購日期到2024年9月30日的簡明綜合損益表中如下：

(以千爲單位)
收入	$	1,021
淨虧損	$	(8,500	)

以下表格表示了假設FGF被納入公司截至2024年和2023年9月30日的 condensed consolidated 結果的 pro forma 合併收入表（單位：千）。以下的營業收入金額不包括由我們停業業務產生的收入。

財務合併收入表的預估排期

截至九個月

2024年9月30日

截至九個月

2023年9月30日

收入

23,457

17,083

淨利潤（損失）

5,305

(11,355

)

注4。終止經營

strong/MDI

在2024年5月3日，強全球娛樂與FGAC、Strong/MDI、FGAC投資者有限責任公司及CG投資VII股份有限公司簽署了收購協議。在2024年9月25日，強全球娛樂完成了交易。作爲交易的一部分，FGAC更名爲Saltire控股有限公司（「Saltire」）。根據收購協議，強全球娛樂獲得了相當於大約$29.5百萬美元的現金和Saltire的優先股和普通股，具體包括： (i) 現金對價爲同期定向增發淨收益的25%（或$80萬），(ii) 發行初始贖回金額爲$900萬的優先股，以及(iii) 發行價值$1970萬的Saltire普通股。與該交易相關，並在將大約$5.4 百萬美元的累計其他綜合收益重新分類至已實現的外匯損失後，公司記錄了大約$21.1百萬美元的強/MDI出售淨收益，此金額作爲附帶未經審計的簡明合併損益表中停止經營活動的收入組成部分。

交易完成後，Strong 全球貨幣娛樂持有大約的所有權利益。 37.3% 在Saltire中。

管理層評估了強勢/MDI的分類，並確定強勢/MDI自2024年9月30日起作爲一項控件。因此，強勢/MDI作爲控件的組成部分，並代表一項控件。相應地，強勢/MDI已被納入所有呈現期間的控件中。

強力工作室

在2022年3月，Strong Studios從Landmark Studio Group LLC（「Landmark」）獲得了原創電影和電視系列的權利，並被分配了全球多平台發行內容的第三方權利。此次交易涉及收購了處於不同開發階段的某些項目。在2022年第二季度，成立了Safehaven 2022, Inc.（「Safehaven 2022」）以管理這些 Safehaven電視系列，這是從Landmark收購的正在進行的項目之一。

2023年9月，公司收購了Unbounded Media Corporation（「Unbounded」）的所有優秀股票，這是一家獨立的媒體和創意製作公司。Unbounded爲廣泛客戶群體開發、創作和製作電影、廣告和品牌內容。公司預期Unbounded將與Strong Studios合作，進一步發展其原創知識產權組合，在其Fieldhouse Entertainment部門下包括利用Strong Studios長篇製作專業知識和行業網絡的特色電影。

截至2023年12月31日，強勢全球娛樂的董事會批准了公司退出其內容業務的計劃，包括Strong Studios和Unbounded，並授權管理層繼續執行該計劃。該計劃預計將有助於公司專注於其核心業務、降低一般及管理成本，並提高財務業績。公司可能會從部分業務處置中獲得收益，並在未來可能收回某些Strong Studios項目中發生的開發成本；然而，任何收回都是高度投機的，管理層無法估計收回的金額、時間或可能性。這些估計可能會根據最終業務處置和潛在收入的情況而改變。

管理層評估了截至2023年12月31日內容業務的分類爲已終止業務。內容業務包括專門致力於該部分整體業務的員工和控件。此外，公司的會計系統和銀行帳戶設置的方式使得現金流能夠與實體的其他部分明確區分。管理層確定其內容業務是實體的一個組成部分，並於2023年12月31日生效地代表了已終止業務。因此，內容業務已被納入爲所有呈現期間的已終止操作。正如上文所述，管理層在2023年12月底開始實施退出計劃。內容業務的所有員工都已被通知公司在12月退出該業務的計劃，管理層立即開始工作以實施退出計劃。

關於退出內容業務計劃，公司將於2023年12月31日起關閉收購的Unbounded業務。

公司在2023年12月簽署了一份意向書，並簽署了一份自2024年1月1日起生效的股票購買協議（「股票購買協議」），以出售Strong Studios大部分運營。因此，公司已將截至2023年12月31日的資產和負債歸類爲終止運營。資產和負債將在2024年第一季度轉移給買方。

根據股份購買協議，公司轉讓了Strong Studios法律實體及所有與Strong Studios相關的資產和負債，但除了與Safehaven相關的資產和負債。股份購買協議包括了$的銷售價格。0.6 百萬現金，分期支付，並承擔了Strong Studios的某些責任。除了其中的百萬購買價格，如果項目在未來盈利商業化，公司未來可以收回對底層項目的持有。0.6 2024年2月應繳納首期付款，但尚未收到購買者的付款，並且管理層不確定最終是否會收到現金購買價格。因此，公司已經調整了與Strong Studios相關的淨資產的賬面價值爲$。0.

安全港 由於公司與該系列的其他投資者就項目的財務管理存在爭議，系列未作爲股票購買協議的一部分進行轉讓。因此，因爭議以及對公司未來營業收入參與預測能力的影響，資產和負債的賬面價值被調整爲$02024年7月，公司解決了爭議，但未導致任何現金支付或對其當前期間基本報表的重大影響。此外，公司保持了獲得分配以收回其投資的權利，並參與系列利潤（如有）。

停止經營的主要資產和負債類別如下（以千爲單位）：

	開多/MDI		開多工作室		總計
	2023年12月31日
	開多/MDI		開多工作室		總計

現金	$	649	$	-	$	649
應收賬款，淨額		2,948		27		2,975
存貨		2,598		-		2,598
其他流動資產		743		7		750
物業、廠房和設備，淨值		1,105		-		1,105
商譽和無形資產		903		-		903
電影和電視節目製作權		-		906		906
停止經營業務的總資產	$	8,946	$	940	$	9,886

應付賬款和應計費用	$	2,375	$	1,321	$	3,696
遞延營收和客戶存款		469		-		469
短期債務		2,438		-		2,438
長期債務		-		71		71
遞延所得稅負債，淨額		125		-		125
終止經營活動的總負債	$	5,407	$	1,392	$	6,799

來自終止經營的淨利潤（虧損）構成的主要項目如下（單位：千）：

停止運營淨損失時間表

	Strong/MDI			Strong Studios			總計			Strong/MDI			Strong Studios			總計
	截至三個月 2024年9月30日									截至三個月 2023年9月30日
	Strong/MDI			Strong Studios			總計			Strong/MDI			Strong Studios			總計
淨收入	$	3,960		$	-		$	3,960		$	4,363		$	-		$	4,363
收入成本		2,136			-			2,136			2,720			-			2,720
毛利潤		1,824			-			1,824			1,643			-			1,643
銷售及管理費用		787			(365	)		422			719			265			984
資產處置損失		71			-			71			-			-			-
營業收入（虧損）		966			365			1,331			924			(265	)		659
其他收入（費用）		21,655			10			21,665			142			(67	)		75
終止經營前稅前的收入（損失）		22,621			375			22,996			1,066			(332	)		734
所得稅費用		(95	)		-			(95	)		(205	)		-			(205	)
淨利潤 (終止經營)	$	22,526		$	375		$	22,901		$	861		$	(332	)	$	529

	強/MDI			強工作室			總計			強/MDI			強工作室			總計
	截至九個月 2024年9月30日									截至九個月 2023年9月30日
	強/MDI			強工作室			總計			強/MDI			強工作室			總計
淨收入	$	11,286		$	-		$	11,286		$	12,414		$	6,379		$	18,793
收入成本		6,530			-			6,530			7,615			1,985			9,600
毛利潤		4,756			-			4,756			4,799			4,394			9,193
銷售及管理費用		2,799			(29	)		2,770			2,314			4,057			6,371
資產處置損益		72			-			72			-			(1	)		(1	)
營業利潤		1,885			29			1,914			2,485			338			2,823
其他收入（費用）		21,796			10			21,806			(233	)		(100	)		(333	)
終止經營前的收入（稅前）		23,681			39			23,720			2,252			238			2,490
所得稅費用		(263	)		-			(263	)		(268	)		-			(268	)
終止經營活動的淨利潤	$	23,418		$	39		$	23,457		$	1,984		$	238		$	2,222

注5。股權投資和公允價值披露

截至2024年9月30日，公司持有大約$68.1百萬美元的股票投資和其他投資業務，其中約$14.4萬美元歸其再保險子公司FGRe所有，公司利用這些股票投資和其他投資來支持其再保險業務的資本結構。

公司針對其每一項權益持股採用公允價值法、股權法和成本法，截至2024年9月30日彙總如下（以千爲單位）：

股權持有安排

	公允價值法		成本法		FG Mechant 合作伙伴s，有限責任公司		FGAC Investors 有限責任公司		FG Merger Investors 有限責任公司		強勁全球娛樂		GreenFirst 林產品控股有限責任公司		總計
					權益法
	公允價值法		成本法		FG 商家合作伙伴s，有限責任公司		FGAC投資者有限責任公司		FG合併投資者有限責任公司		全球娛樂		GreenFirst林產品控股有限責任公司		總計
投資於上市公司：
GreenFirst林產品普通股	$	8,380	$	-	$	-	$	-	$	-	$	-	$	722	$	9,102
Saltire普通股和優先股以及warrants		-		-		1,244		6,396		-		28,727		-		36,367
iCoreConnect優先股和warrants		-		-		1,288		-		1,575		-		-		2,863
Oppfi普通股和warrants		772		-		-		-		-		-		-		772
Hagerty普通股		-		-		23		-		-		-		-		23
對私人持有公司的投資：
FG Communities普通股和優先股		-		2,288		2,003		-		-		-		-		4,291
Firefly優先股		-		12,898		-		-		-		-		-		12,898
Craveworthy普通股和票據		-		200		1,456		-		-		-		-		1,656
其他		-		160		-		-		-		-		-		160
總計	$	9,152	$	15,546	$	6,014	$	6,396	$	1,575	$	28,727	$	722	$	68,132

截至2023年12月31日，本公司的唯一權益持有包括FGH對FGF的股權投資，該投資通過其在fg financial holdings, LLC的控股進行，在合併過程中被消除，對GreenFirst（如下所定義）的持有使用公允價值法進行會計處理，而對Firefly Systems, Inc.（「Firefly」）的持有則使用成本法進行會計處理。

公允價值法持有

根據公允價值法持有的資產，負債的賬面價值是基於證券的交易價格與持有的股份數相乘來確定的。以下表格總結了截至2024年9月30日和2023年12月31日公司公允價值法持有的情況（單位：千）:

公允價值日程

截至2024年9月30日	成本基礎		毛額未實現收益		毛額未實現損失			賬面價值金額
GreenFirst普通股	$	8,679	$	-	$	(299	)	$	8,380
OppFi普通股和權證		427		345		-			772
總公允價值法持有量	$	9,106	$	345	$	(299	)	$	9,152

截至2023年12月31日

成本基礎

毛額

未實現

收益

毛額

未實現

損失

賬面價值

金額

GreenFirst普通股

8,679

1,873

10,552

總公允價值法持有額

8,679

1,873

10,552

公允價值法持有的賬面價值是根據安防-半導體的交易價格乘以持有的股份數量來確定的。

GreenFirst 林產品公司（「GreenFirst」）是一家專注於環保可持續林業管理和木材生產的加拿大上市公司。公司持有GreenFirst的股份，公允價值爲$8.4 百萬，基於可觀察的報價市場價格。0.8 公司還通過在GreenFirst林產品控股有限責任公司中的權益法持有約$

OppFi Inc.（「OppFi」）是一家公開交易的技術驅動、使命導向的專業金融平台，旨在拓寬社區銀行爲普通美國人提供信貸的渠道。該公司根據可觀察的報價市場價格採用公允價值法會計處理其普通股和OppFi的warrants。

權益法持股

截至2023年12月31日，公司的唯一權益法投資包括FGH在FGF的股權，持有方式爲通過其在fg financial控股公司（LLC）的投資，該投資在合併過程中被消除。

2021年1月4日，FGMP成立爲特拉華州有限合夥企業，與其創始人或合作伙伴共同贊助新成立的spac上市公司，以及其他商業銀行利益。公司是FGMP的總合夥企業唯一管理成員，並直接持有約%股權。 50FGMP通過直接以及通過其子公司持有的方式，參與作爲SPAC平台下啓動的spac上市公司的共同贊助者，以及商業銀行倡議。

截至2024年9月30日的三個和九個月，公司記錄了來自FGMP的權益法損失，約爲$2.4萬和$萬，此貸款以公司持有的21個物業作爲抵押。該貸款的資金用於償還B系列債券和未受HUD擔保抵押貸款的商業貸款。2.3 百萬美元分別。在2024年9月30日的季度或九個月內，未向FGMP進行資本注入。我們在2024年9月30日持有的FGMP的$6.0 百萬美元賬面價值中，公司可能最多分配約$0.4 百萬美元，用於激勵和補償個人和實體，以促成我們平台下啓動的spac上市公司成功合併。

公司直接控股有限責任公司，持有FGAC Investors LLC的投資，該公司持有FG Acquisition Corp.的投資，在FG Merger Investors LLC，該公司持有iCoreConnect Inc.（"iCoreConnect"）的股份，和GreenFirst Forest Products Holdings, LLC，該公司持有GreenFirst的股票。管理層認爲自己能夠對FGAC Investors LLC，FG Merger Investors LLC和GreenFirst Forest Products Holdings LLC施加重大影響，並根據權益法處理這些持股。

截至2024年9月30日的三個月和九個月，公司記錄了FG Merger Investors LLC的權益法虧損。對FG Merger Investors LLC的權益法損失約爲$百萬。3.6 百萬美元和美元3.5 對於GreenFirst林產品控股有限公司的權益法收益（損失），分別約爲$百萬。0.3和 $(24,000)分別記錄了2024年9月30日結束的三個月和九個月的$百萬虧損，以及FGAC Investors LLC的$百萬虧損。2.0和 $2.6分別記錄了2024年9月30日結束的三個月和九個月的$百萬虧損。

下面展示的財務信息彙總反映了我們通過權益法覈算的持有資產的綜合基礎財務信息（以千爲單位）：

	截至 2024年9月30日
其他資產	$	55,652
現金		1,206
其他資產		327
總資產		57,185

總負債		13,287

	截至三個月 2024年9月30日			截至九個月 2024年9月30日
(以千爲單位)
淨持有虧損	$	(17,452	)	$	(17,351	)
其他收益（損失）		(17	)		5
一般和行政費用		9			(39	)
淨虧損	$	(17,460	)	$	(17,385	)

某些由我們權益法投資單位持有的資產使用蒙特卡羅模擬和期權定價模型進行估值。在蒙特卡羅模擬和期權定價模型中，固有假設與預期波動率和缺乏市場流動性的折扣相關。我們的投資單位基於各類寬廣市場指數的歷史表現以及與底層資產具有類似特徵的同行公司，估計這些資產的波動率，並考慮相關上市證券（如spac上市公司權證）的價格和波動率。當爲尚未完成交易的spac上市公司評估股權時，我們的投資單位也會考慮成功合併的概率。隨着時間的推移，這些資產的實際結果可能與使用蒙特卡羅模擬和期權定價模型的估計相差甚遠。

費用沒有確定公允價值的投資方法持有

除了我們的權益法和公允價值法持股外，其餘持股若無法確定公允價值，將按其成本覈算，隨時根據減值或有序交易中可觀察價格變化進行調整。當公司觀察到被投資方出售相同或類似股權證券的有序交易時，公司會根據交易日期的可觀察價格調整賬面價值。公司收到的這些持股的任何利潤分配均包括在淨持有收入中。公司並不知道在2024年9月30日結束的九個月內有任何相同或類似股票的發行。因此，無法確定公允價值的持股賬面價值在2024年9月30日結束的三個和九個月內未發生變化。

公司的其他持股包括一張可轉換的期票和一張高級無抵押期票。

2023年9月29日，公司投資了$250,000 轉換債券票據與ThinkMarkets的投資中，已有$125,000 於2024年9月30日前歸還。該票據年利率爲 15%，要求每月支付利息，並於2025年8月1日到期。在擬議的業務組合結束後，公司有權選擇將任何未償還的貸款金額和所有已計提但未支付的利息轉換爲FGAC普通股，轉換價格爲每股$5.00 。公司評估了可轉換的票據的結算規定，並選擇了公允價值選擇權以估值該工具。根據公允價值選擇，可轉換票據在初始和後續階段均以公允價值計量。截至2024年9月30日，其公允價值計算爲$125,000.

2023年3月16日，公司投資了$200,000向Craveworthy提供了一筆無擔保的高級貸款。該貸款的利率爲 13%，期限爲 2024年3月15日。該無擔保高級票據於2023年10月17日修改爲可轉換的橋樑貸款，到期日被改爲2024年10月16日。在2024年11月，公司和Craveworthy將到期日延長至2025年4月16日。$200,000本金和任何應計利息可由Craveworthy自願提前償還，但不必須在到期日前支付。截至2024年9月30日，全部本金金額$200,000以及約$44,000應計利息尚未償還。

減值

對於沒有明顯可確定公允價值的權益證券，通過定性評估來判斷是否存在減值，考慮因子來評估持有的減值情況。其中一些指標包括投資方盈利績效或資產質量顯著惡化，投資方所處的監管、經濟或一般市場條件出現重大不利變化，或對投資方持續經營的能力產生疑慮。如果在進行該分析後認定該持有減值，管理層將估算持有的公允價值以確定減值損失的金額。

對於權益法持有，價值損失的證據可能包括投資方的一系列經營虧損、無法收回持有的賬面價值，或者投資方基礎資產價值的惡化。如果這些或其他因子導致得出持有價值下降不是暫時的結論，公司將確認該價值下降，即使下降可能超過在權益法會計下通常會確認的損失。

判斷減值的評估方法中固有的風險和不確定性包括但不限於以下:

	●	專業投資經理和評估師的意見可能是錯誤的；

	●	過去的經營績效和投資者的經營所產生的現金流可能不反映它們的未來表現；和

	●	對於沒有可觀察市場價格的持有品的估計公允價值本質上是不準確的。

公司在截至2024年9月30日的季度或九個月期間未記錄其持股的減值。

2024年9月30日結束的三個月和九個月的淨持倉虧損金額如下(以千爲單位)：

淨持倉損失計劃

	三個月結束 2024年9月30日			截至九個月 2024年9月30日

普通股票的實現盈利	$	55		$	550
普通股票未實現持有變動		4,108			(2,267	)
權益法下持股的虧損		(7,090	)		(8,896	)
其他		291			566
淨持有虧損	$	(2,636	)	$	(10,047	)

公允價值衡量

公司根據市場參與者在主要或最有利市場定價資產或負債所使用的假設確定公允價值。FASB已發佈指導方針，將公允價值定義爲主要或最有利市場中資產（或轉讓負債）的交易價格，在市場參與者之間進行有序交易時將收到的價格（或支付的價格）。該指導還建立了一個公允價值層次結構，要求實體在衡量公允價值時最大程度地利用可觀察輸入並最小化使用不可觀察的輸入。該指導將以觀察所採用的輸入而將公允價值的資產和負債分類爲三種不同的級別之一，如下：

	●	級別 1 – 估值方法的輸入是活躍市場中相同資產或負債的報價，這提供了最可靠的公允價值測量，因爲它是直接可觀察的。

	●	級別 2 – 估值方法的輸入包括活躍市場中類似資產或負債的報價。這些輸入是可觀察的，直接或間接上，幾乎整個金融工具的期限。

	●	級別 3 – 估值方法的輸入是不可觀察的，並且對公允價值的測量至關重要。

可估值技術和可觀察輸入的可用性可能因持有資產而異，並受到多種因素的影響，包括持有資產的類型、持有資產是否新近且尚未在市場上建立、市場的流動性以及特定於個別持有資產的其他特徵。在某些情況下，用於衡量公允價值的輸入可能被歸類於公允價值層次結構中的不同級別。在這些情況下，公允價值測量的整體歸類基於對公允價值測量重要的最低級別輸入。當確定公允價值時，公司使用最大化可觀察輸入並最小化不可觀察輸入的估值技術。

根據FASB發佈的指導，2024年9月30日和2023年12月31日對以公允價值計量的金融工具（以千計）如下：

截至2024年9月30日	一級		二級		三級		總計
Oppfi普通股和認股權證	$	772	$	–	$	–	$	772
GreenFirst普通股		8,380		–		–		8,380
金融工具公允價值	$	9,152	$	–	$	–	$	9,152

截至2023年12月31日
GreenFirst普通股	$	10,552	$	–	$	–	$	10,552
金融工具公允價值	$	10,552	$	–	$	–	$	10,552

註釋6。再保險虧損和賠付費準備金

在合併基本報表中記錄損失和損失調整費用（「LAE」）準備金的金額需要相當大的判斷。設立這一準備金的過程反映了預測已知和未知損失事件未來結果的固有不確定性和重要判斷因素。設立損失和LAE準備金的過程依賴於許多個人的判斷和意見，包括公司的管理層、讓渡公司管理層及其精算師的意見。

在估算損失時，公司可能評估以下任何一項：

	●	對現行合同的審查，這些合同可能提供覆蓋併發生損失；
	●	一般預測、自然災害和情景建模分析及再保險人分享的結果；
	●	對行業保險損失估計和市場份額分析的審查；
	●	管理層的判斷；以及
	●	損失發展因素選擇、初始預期損失比率選擇以及所使用方法的權重

根據我們某些分擔配額協議的條款，由於理賠和保費報告的性質，存在（i）基礎被保險人向公司的分保人報告索賠和（ii）公司的分保人向公司報告索賠之間的滯後。我們會根據來自分保人的信息的可用性，延遲1個月至3個月報告再保合同的結果。儘管管理層認爲其對2024年9月30日的損失準備金和賠付準備金的估計是充分的，但根據現有信息，實際損失最終可能與公司目前的估計有重大差異。管理層將繼續監視其假設的適當性，隨着提供新信息而調整。

2024年9月30日止九個月西9月30日止的未清償損失和損失賠付準備金變動摘要如下（單位：千美元）：


期初餘額，扣除再保險	$	9,036
與以下相關的發生
當前年份		5,175
原年度		521
與以下內容有關的費用:
當前年份		(3,042	)
之前年份		(490	)
2024年9月30日餘額，扣除再保險	$	11,200

註釋7。存貨

庫存由以下資產組成（以千爲單位）：

存貨明細表

	2024年9月30日		2023年12月31日
原材料和元件	$	-	$	-
在製品		-		6
成品，減去準備金		1,480		1,476
總計	$	1,480	$	1,482

存貨餘額淨值約$的儲備0.4 截至2024年9月30日和2023年12月31日，存貨淨額主要與公司的產成品庫存相關。截至2024年9月30日的九個月存貨準備賬目變動如下（以千爲單位）:

庫存準備金時間表


2023年12月31日的庫存準備金餘額	$	384
2024年的庫存減值		2
2024年的庫存準備金盈餘		(20	)
2024年9月30日的庫存準備金餘額	$	366

注8。固定資產

固定資產、廠房和設備包括以下項目（以千爲單位）：

物業、廠房和設備的時間表

	2024年9月30日			2023年12月31日
土地	$	47		$	2,342
建築物和改善		3,416			9,469
機械和其他設備		671			678
辦公傢俱和固定裝置		332			377
建設中的工程		24			-
固定資產、廠房及設備總成本		4,490			12,866
減：累計折舊		(1,423	)		(1,751	)
物業、廠房和設備，淨值	$	3,067		$	11,115

根據註釋1中討論的內容，該公司在2024年第二季度出售了數字點火業務。

折舊費用約爲$0.1 百萬美元和美元0.2 ，分別在截至2024年和2023年9月30日的三個月內認定爲$百萬和$百萬0.4和 $0.5 百萬。

註釋9。所得稅

在評估遞延稅資產的可實現性時，公司考慮是否有可能不會實現部分或所有遞延稅資產。遞延稅資產的最終實現取決於未來應納稅收入的產生。公司在作出這一評估時考慮了應納稅暫時差異的計劃逆轉、預計未來應納稅收入及稅務策略。近年來在特定稅收管轄區的累計虧損是關於可實現性的一個重要證據，很難克服。根據可獲得的客觀證據，包括最近對產生收入的稅收管轄區的更新，公司得出結論，應當對截至2024年9月30日和2023年12月31日的所有美國稅收管轄區的遞延稅資產記錄估值準備。

《減稅與就業法案》（「稅法」）提供了一種地區性稅制，始於2018年。它包括全球低稅無形收入（「GILTI」）條款。GILTI條款要求公司在其美國所得稅申報中包括外國子公司的收益，這些收益超過外國子公司有形資產的允許回報。GILTI條款還允許高稅收排除，如果被測試收入的有效稅率高於 18.9%。公司在確定稅務條款的包含適當金額時，已評估這些法規。被測試收入的有效稅率高於 18.9%；因此，公司在2024年9月30日結束的三個月和九個月以及2023年12月31日的稅務條款中利用GILTI高稅收排除。

《稅收法典》要求美國股東包括其在分紅、利息、租金和其他各種類型收入中的受控外國公司（「CFC」）收入中的份額，被稱爲第F部分收入。截至2024年9月30日的三個月和九個月，公司因其在境外CFC的利息收入而產生額外應納稅收入，該收入完全被淨營運損失抵消。

稅法的變化可能會影響記錄的遞延稅資產和負債，以及我們未來的有效稅率。 2020年3月，CARES法案獲得通過，並對聯邦稅法做出了重大變化，包括一些追溯到2019年稅收年度的特定變更。這些變化的影響涉及遞延稅資產和淨經營虧損；所有這些都由評估準備金抵消。在這些財務報表的報告期間，並沒有截至該立法案造成的重大所得稅後果。

公司可能在2020年至2022年的會計年度面臨尚未啓動的聯邦目的的審查。公司也可能接受州和地方目的的審查。在大多數情況下，這些審查在各州和地方管轄範圍內仍然保持開放，根據各自司法追訴時效的特定規定。

註釋 10. 股權激勵計劃授予

2021年12月15日，我們的股東批准了FG金融集團有限公司的2021年股權激勵計劃（"2021計劃"）。2021計劃的目的是吸引和留住公司及其子公司的董事、顧問、高級管理人員及其他關鍵員工，並向這些人提供激勵和獎勵，以表彰其卓越表現。2021計劃由薪酬和管理資源委員會管理，期限爲十年。2021計劃獎勵可能以股票期權（可能是激勵性股票期權或非合格股票期權）、股票增值權（或"SARs"）、限制股、限制股單位（"RSUs"）和其他股份獎勵形式，最多提供 60,000 股份 60,000 to 80,0001000000 4,000 股份

此外，在2023年3月24日，董事會批准了一項員工股票購買計劃（「ESPP計劃」），符合條件的員工每年可以選擇扣留其年度基本收入的最多5%，用於在公開市場購買公司的普通股。公司在員工入職30天后匹配員工繳納金額的100%。.

截至2024年9月30日，每個季度的總股權補償費用約爲$0.4百萬美元，分別爲$1.2和 $1.4截至2024年9月30日的九個月，分別爲$百萬美元。截至2024年9月30日，尚未確認的股票補償費用約爲$1.5 百萬美元，將於2028年12月前確認。股票補償費用已在公司的基本報表中作爲一般和管理費用的一部分反映。

作爲合併的一部分，根據FGH的2017年全權股權報酬計劃的條款授予的每股限制性股票單位和股票期權獎勵已轉換爲購買或獲得公司普通股等數量的期權。合併中承擔的每個FGH限制性股票單位和股票期權獎勵的條款、歸屬時間表和所有其他條款均未更改。

根據與強大全球娛樂的安排，根據強大全球娛樂2023年股票補償計劃授予的每個限制性股票單位和期權獎勵，被轉換爲購買或接收1.5股公司普通股的期權。每個FGH限制性股票單位和期權獎勵在與強大全球娛樂的安排中假定的條款、歸屬時間表及其他所有條款均未發生變化。

限制性股票單位

以下表格總結了截至2024年9月30日的九個月內RSU活動：

限制性股票單位活動安排

限制性股票單位	數量 Units			加權平均授予日期公允價值
截至2023年12月31日的非歸屬單位		69,343		$	62.24
已授予		32,000			32.75
歸屬		(66,900	)		50.54
被取消		(1,500	)		77.75
未歸屬單位，2024年9月30日		32,943		$	61.86

上表包括FGH、FGF和強大的全球娛樂活動。公司於2024年1月3日向公司管理層授予了總計 700,000 名成員的RSUs，所有股份均於2024年2月17日獲得。

期權

以下表格總結了截至2024年9月30日的九個月內發行的股票期權的活動：

期權活動計劃表

期權	股份			加權平均行使價格		加權平均剩餘合同期限（年）		加權平均授予日公允價值		總內在價值
傑出，2023年12月31日		37,960		$	79.91		8.0	$	35.25	$	–
已授予		–			–		–		–		–
已行權		–			–		–		–		–
被取消		(750	)		–		–		–		–
2024年9月30日的未到賬數		37,210		$	79.96		6.1	$	38.17	$	–
可執行，2024年9月30日		20,219		$	36.80		4.5	$	35.03	$	–

上述表格包含了FGH、FGF和強勁全球娛樂的股票期權活動。

注11。關聯方交易

關聯交易是在正常經營過程中進行的，部分由各方協商確定的支付或收到的款項來衡量。除非在這些合併基本報表中的其他地方披露，以下是關聯交易摘要。

聯合風險協議

在2020年3月31日，公司簽署了基本全球資產管理有限責任公司（「FGAM」）的有限責任公司協議，這是一個由公司和FG各擁有的合資企業。 50FGAm的目的是爲投資經理提供贊助、資本支持和戰略建議，以幫助他們啓動和/或發展其資產管理業務及其所贊助的投資產品（每個稱爲「贊助基金」）。

FGAM 由一個由四位經理組成的董事會管理，其中每個成員各指定了兩位。公司已經任命了兩位獨立董事加入FGAm的董事會。包括決定贊助新投資經理在內的某些重大行動，需要經過兩位成員的事先同意。

FG 特殊情況基金

本公司作爲有限合夥人參與了FG特殊情境基金（「基金」）。基金的普通合夥人和投資顧問最終由本公司董事會主席Cerminara先生控制。本公司對基金的部分投資用於贊助與我們某些高管和董事相關的spac上市公司的啓動。

The Fund began the process of winding down in the first quarter of 2023 and completed the process in the second quarter of 2023. As a result of the winddown, the Company now holds direct limited partner interests in FGAC Investors LLC, FG Merger Investors LLC, and GreenFirst Forest Products Holdings, LLC. Mr. Cerminara and Mr. Swets serve as managers of FGAC Investors LLC and FG Merger Investors LLC, while Mr. Cerminara ultimately controls GreenFirst Forest Products Holdings, LLC.

FG Merchant Partners

FGMP was formed to co-sponsor newly formed SPACs and other merchant banking clients with their founders or partners. Certain of our directors and officers also hold limited partner interests in FGMP. Mr. Swets holds a limited partner interest through Itasca Financial LLC, an advisory and investment firm for which Mr. Swets is managing member. Mr. Cerminara also holds a limited partner interest through Fundamental Global, LLC, a holding company for which Mr. Cerminara is the manager and one of the members.

FGMP has invested in the founder shares and warrants of Aldel Financial Inc., FG Merger Corp, FG Acquisition Corp, FGC and Craveworthy. Certain of our directors and officers are affiliated with these entities.

FG Communities

In October of 2022, the Company directly invested $2.0 million into FGC. The Company also holds an interest through its ownership in FGMP. FGC is a self-managed real estate company focused on a growing portfolio of manufactured housing communities which are owned and operated by FGC. Mr. Cerminara is the President and the Chairman of the Board of Directors of FGC.

Craveworthy

On March 16, 2023, the Company invested $200,000 in a senior unsecured loan to Craveworthy, which was amended to a convertible bridge loan on October 17, 2023. Mr. Swets has an indirect interest in Craveworthy, independent from the interests held by the Company through its ownership in FGMP.

ThinkMarkets

On September 29, 2023, the Company invested $250,000 in a convertible promissory note, of which $125,000 has been repaid through September 30, 2024, to support the business combination of ThinkMarkets and FG Acquisition Corp. Mr. Swets is an executive officer of FG Acquisition Corp.

Shared Services Agreement

On March 31, 2020, the Company entered into a Shared Services Agreement (the “Shared Services Agreement”) with Fundamental Global Management, LLC (“FGM”), an affiliate of FG, pursuant to which FGM provides the Company with certain services related to the day-to-day management of the Company, including assisting with regulatory compliance, evaluating the Company’s financial and operational performance, providing a management team to supplement the executive officers of the Company, and such other services consistent with those customarily performed by executive officers and employees of a public company. In exchange for these services, the Company pays FGM a fee of $456,000 per quarter (the “Shared Services Fee”), plus reimbursement of expenses incurred by FGM in connection with the performance of the Services, subject to certain limitations approved by the Company’s Board of Directors or Compensation Committee from time to time.

The Shared Services Agreement has an initial term of three years, and thereafter renews automatically for successive one-year terms unless terminated in accordance with its terms. The Shared Services Agreement may be terminated by FGM or by the Company, by a vote of the Company’s independent directors, at the end of the initial or automatic renewal term upon 120 days’ notice, subject to payment by the Company of certain costs incurred by FGM to wind down the provision of services and, in the case of a termination by the Company without cause, payment of a termination fee equal to the Shared Services Fee paid for the two quarters preceding termination.

The Company paid $0.5 million and $1.4 million to FGM under the Shared Services Agreement for each of the three months and nine months ended September 30, 2024 and 2023, respectively.

Note 12. Net Earnings Per Share

Net earnings per share is computed by dividing net income by the weighted average number of common shares and common share equivalents outstanding during the periods presented. In calculating diluted earnings per share, those potential common shares that are found to be anti-dilutive are excluded from the calculation. The table below provides a summary of the numerators and denominators used in determining basic and diluted earnings per share for the three and nine months ended September 30, 2024 and 2023 (in thousands, except per share amounts).

	2024			2023			2024			2023
	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Basic and diluted:
Net loss from continuing operations	$	(5,242	)	$	(3,854	)	$	(16,168	)	$	(14,927	)
Net loss attributable to non-controlling interest		-			4			160			122
Dividends declared on Series A Preferred Shares		(447	)		-			(963	)		-
Loss attributable to Fundamental Global common shareholders from continuing operations	$	(5,689	)	$	(3,850	)	$	(16,971	)	$	(14,805	)
Weighted average common shares outstanding		1,143			415			986			393
Loss per common share from continuing operations	$	(4.98	)	$	(9.28	)	$	(17.22	)	$	(37.72	)

The following potentially dilutive securities outstanding as of September 30, 2024 and 2023 have been excluded from the computation of diluted weighted-average shares outstanding as their effect would be anti-dilutive.

	As of September 30,
	2024		2023
Options to purchase common stock		37,210		29,160
Restricted stock units		32,943		20,775

Note 13. Debt

The Company’s short-term and long-term debt consist of the following (in thousands):

	September 30, 2024			December 31, 2023
Short-term debt:
20-year installment loan	$	2,096		$	2,227
Revolving credit facility		38			-
Insurance debt		236			83
Total short-term debt		2,370			2,310
Less: deferred debt issuance costs, net		(10	)		(16	)
Total short-term debt, net of issuance costs	$	2,360		$	2,294

Long-term debt:
Tenant improvement loan	$	98		$	126
ICS promissory note		271			446
Digital Ignition building loan		-			4,925
Total long-term debt		369			5,497
Less: deferred debt issuance costs, net		-			(36	)
Total long-term debt, net of issuance costs	$	369		$	5,461

Installment Loan and Revolving Credit Facility

In January 2023, Strong/MDI and Canadian Imperial Bank of Commerce (“CIBC”) entered into a demand credit agreement (the “2023 Credit Agreement”), which amended and restated the 2021 Credit Agreement. The 2023 Credit Agreement consists of a revolving line of credit for up to CAD$5.0 million and a 20-year installment loan for up to CAD$3.1 million. Under the 2023 Credit Agreement: (i) the amount outstanding under the line of credit is payable on demand and bears interest at the lender’s prime rate plus 1.0% and (ii) the amount outstanding under the 20-year installment loan bears interest at the lender’s prime rate plus 0.5% and is payable in monthly installments, including interest, over their respective borrowing periods. The lender may also demand repayment of the 20-year installment loan at any time. The 2023 Credit Agreement is secured by a lien on Strong/MDI’s Quebec, Canada facility and substantially all of Strong/MDI’s assets. The 2023 Credit Agreement requires Strong/MDI to maintain a ratio of liabilities to “effective equity” (tangible stockholders’ equity, less amounts receivable from affiliates and equity holdings) not exceeding 2.5 to 1 and a fixed charge coverage ratio of not less than 1.1 times earnings before interest, income taxes, depreciation and amortization. In connection with the IPO, the 20-year installment note did not transfer to the Company. In May 2023, Strong/MDI and CIBC entered into an amendment to the 2023 Credit Agreement which reduced the amount available under the revolving line of credit to CAD$3.4 million, and CIBC provided an undertaking to Strong/MDI to a release of CIBC’s security interest in certain assets to be transferred to a subsidiary in connection with transactions related to the IPO of Strong Global Entertainment. Also on January 19, 2024, the Company and CIBC entered into a second amendment to the 2023 Credit Agreement. Pursuant to the amendment, (i) the credit limit for the revolving line of credit was reduced to CDN$1.4 million. As of September 30, 2024, there was CAD$52,000, or approximately $38,000, of principal outstanding on the revolving credit facility, which bears variable interest at 7.7%. The Company was in compliance with its debt covenants as of September 30, 2024.

Also on January 19, 2024, Strong Global Entertainment entered into a new demand credit agreement with CIBC. The agreement consists of a demand operating credit and a business credit card facility. Under the demand operating credit, with certain conditions, the credit limit is the lesser of (a) CAD$6.0 million or (b) the sum of (i) 80% of Receivable Value, which includes all North American accounts receivable of Strong/MDI and STS, and (ii) 50% of Inventory Value, but in no event may the amount in this clause (ii) exceed $1.5 million, minus (iii) all Priority Claims (as defined in the demand credit agreement). As of September 30, 2024, there was CAD$4.0 million, or approximately $3.0 million, of principal outstanding on the revolving credit facility, which bears variable interest at 7.7%. Strong Global Entertainment was in compliance with its debt covenants as of September 30, 2024. The Company has not included the principal outstanding on the revolving credit facility on its condensed consolidated balance sheet as of September 30, 2024 since the outstanding balance was transferred to Saltire as part of the sale of Strong/MDI. The Company and Saltire continue to be co-borrowers and guarantors under the CIBC credit facility following the sale of Strong/MDI to Saltire and the transfer of the loan obligations to Saltire. Saltire is finalizing its stand-alone credit facility, which it expects to close in the fourth quarter for 2024 at which time the balance owed under the credit facility by Saltire is expected to be paid in full and the credit facility and all guarantees terminated.

Tenant Improvement Loan

During the fourth quarter of 2021, the Company entered into a lease for a combined office and warehouse in Omaha, Nebraska. The Company incurred total costs of approximately $0.4 million to complete the build-out of the new combined office and warehouse facility. The landlord has agreed to fund approximately 50% of the build-out costs, and the Company is required to repay the portion funded by the landlord in equal monthly installments through the end of the initial lease term in February 2027. Through the end of 2021, the Company incurred approximately $0.2 million of total costs to build out the facility, of which approximately $0.1 million was funded by the landlord. The Company completed the build-out during the first quarter of 2022 and incurred an additional $0.2 million of total costs to complete the build-out, of which approximately $0.1 million was funded by the landlord.

Digital Ignition Building Loan

In January 2022, the Company purchased a parcel of land with buildings and improvements in Alpharetta, Georgia. In connection with the purchase of the land and building, the Company entered into a Commercial Loan Agreement (the “Loan Agreement”) with Community First Bank (the “Lender”), dated February 1, 2022. Pursuant to the Loan Agreement, the Lender agreed to lend the Company approximately $5.3 million (the “Loan Amount”), and the Borrower agreed to repay the Loan Amount pursuant to the terms of a promissory note (the “Note”).

The term of the Loan Agreement runs from February 1, 2022, until the Loan Amount is repaid in full by the Company or the Loan Agreement is terminated pursuant to its terms or by agreement between the Company and the Lender. The terms of the Note include (i) a fixed interest rate of 4%, (ii) maturity date of February 1, 2027, (iii) monthly payments of approximately $32 thousand beginning on March 1, 2022, and continuing on the first of each month until the maturity date or until the Note has been paid in full, (iv) a default interest of 8% in the event of a default pursuant to the terms of the Note, and (v) prepayment penalties of (a) 3% of all excess payments during the first two years of the term of the Note, (b) 2% of all excess payments during the third and fourth years of the term of the Note, and (c) 1% of all excess payments made during the fifth year of the term of the Note.

The Note includes standard events of default and references defaults under the Loan Agreement and the Deed to Secure Debt as events of default under the Note. The Company has a right to cure any curable events of default.

In April 2024, the Company closed the sale of the Digital Ignition Building and the Digital Ignition Building Loan was repaid in full.

ICS Promissory Note

STS issued a $0.5 million promissory note in connection with the acquisition of Innovative Cinema Solutions (“ICS”). The promissory note will be repaid in monthly installments of approximately $20,000 through November 2025 and bears fixed interest of 5%.

Insurance Note

The Company maintains certain commercial insurance policies, including management liability and other policies customarily held by publicly traded companies. The Company elected to finance a portion of the annual premium, which will be repaid in monthly installments through April 2025. The finance agreement bears fixed interest of approximately 9.7%.

Contractual Principal Payments

Contractual required principal payments on the Company’s long-term debt at September 30, 2024 are as follows (in thousands):

	Tenant Improvement Loan		ICS Promissory Note		Total
Remainder of 2024	$	9	$	58	$	67
2025		40		213		253
2026		42		-		42
2027		7		-		7
Total	$	98	$	271	$	369

Note 14. Commitments and Contingencies

Legal Proceedings:

From time to time, we are involved in legal proceedings and litigation arising in the ordinary course of business. Currently, it is not possible to predict legal outcomes and their impact on the future development of claims. Any such development will be affected by future court decisions and interpretations. Because of these uncertainties, additional liabilities may arise for amounts in excess of the Company’s current reserves.

The Company is named as a defendant in personal injury lawsuits based on alleged exposure to asbestos-containing materials. A majority of the cases involve product liability claims based principally on allegations of past distribution of commercial lighting products containing wiring that may have contained asbestos. Each case names dozens of corporate defendants in addition to the Company. In the Company’s experience, a large percentage of these types of claims have never been substantiated and have been dismissed by the courts. The Company has not suffered any adverse verdict in a trial court proceeding related to asbestos claims and intends to continue to defend these lawsuits. As of September 30, 2024, the Company has a loss contingency reserve of approximately $0.1 million, which represents management’s estimate of its potential losses related to the settlement of open cases. When appropriate, the Company may settle additional claims in the future. Management does not expect the resolution of these cases to have a material adverse effect on the Company’s condensed consolidated financial condition, results of operations or cash flows.

On April 29, 2024, Ravenwood-Productions LLC (“Ravenwood”) and Kevin V. Duncan (“Duncan” and, together with Ravenwood, the “Plaintiffs”) filed a civil complaint (the “Complaint”) against Strong Global Entertainment, certain affiliated entities, and certain current and former employees, officers and directors of the Strong Global Entertainment (collectively, the “Defendants”) in the United States District Court for the Central District of California. The Complaint claimed seven causes of action, each claim against some, or all, of the Defendants. In July 2024, Strong Global Entertainment entered into an agreement resulting in the settlement and dismissal of the Complaint. In connection with the settlement and dismissal, Strong Global Entertainment did not make any cash payments to the Plaintiffs. In addition, Strong Global Entertainment maintained a right to receive distributions to recover its investment and to participate in series profits (if any).

On July 16, 2024, the Company received notice that its was named as a defendant, along with over 500 other companies, in a civil action filed for cost recovery and contributions related to the release and/or threatened release of hazardous substances from a facility known as the BKK Class 1 Landfill in Los Angeles County California from periods prior to 1987. The action alleges that FGH is a successor to Pichel Industries, Inc. (“Pichel Industries”) and that Pichel Industries contributed waste to the landfill. Management of FG is in the early stages of evaluating the claim and determining its response.

Note 15. Leases

The following tables present the Company’s lease costs and other lease information (dollars in thousands):

Schedule of Lease Cost

Lease cost	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
	Three Months Ended				Nine Months Ended
Lease cost	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Finance lease cost:
Amortization of right-of-use assets	$	65	$	53	$	195	$	123
Interest on lease liabilities		24		22		78		49
Operating lease cost		68		38		218		111
Net lease cost	$	157	$	113	$	491	$	283

Other information	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
	Three Months Ended				Nine Months Ended
Other information	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	24	$	22	$	78	$	49
Operating cash flows from operating leases	$	56	$	33	$	186	$	98
Financing cash flows from finance leases	$	64	$	40	$	191	$	106

	As of September 30, 2024
Weighted-average remaining lease term - finance leases (years)		1.7
Weighted-average remaining lease term - operating leases (years)		1.8
Weighted-average discount rate - finance leases		9.3	%
Weighted-average discount rate - operating leases		5.0	%

The following table presents a maturity analysis of the Company’s operating and finance lease liabilities as of September 30, 2024 (in thousands):

	Operating Leases			Finance Leases
Remainder of 2024	$	55		$87
2025		152		600
2026		81		468
2027		14		-
Total lease payments		302		1,155
Less: Amount representing interest		(14	)	(119)
Lease obligations	$	288		$1,036

Note 16. Segment Reporting

The Company has three operating segments - reinsurance, merchant banking, and managed services. The CODM is the Company’s Chief Executive Officer. The measure of profit or loss used by the CODM to identify and measure the Company’s reportable segments is income before income tax. Our reinsurance segment consists of the operations of our Cayman Islands-based reinsurance subsidiary, FGRe, as well as the returns associated with the holdings acquired by our reinsurance operations. Our merchant banking segment includes our holdings made outside of reinsurance operations. Our managed services segment includes STS, which provides comprehensive managed service offerings to cinema operators and entertainment venues nationwide to ensure solution uptime and availability.

The following table presents the financial information for each segment that is specifically identifiable or based on allocations using internal methodology as of and for the three and nine months ended September 30, 2024 and 2023. The ‘other’ category in the table below consists largely of corporate general and administrative expenses which have not been allocated to a specific segment.

Summary of Segment Reporting

	Insurance			Asset Management		Strong Global Entertainment		Other			Total
	Three Months Ended September 30, 2024
	Reinsurance			Merchant Banking		Managed Services		Other			Total
Net premiums earned	$	4,293		$	-	$	-	$	-		$	4,293
Net holdings (loss) income		(7,173	)		4,537		-		-			(2,636	)
Product sales		-			-		5,681		-			5,681
Services revenue		-			-		3,115		-			3,115
Total revenue	$	(2,880	)	$	4,537	$	8,796	$	-		$	10,453

(Loss) income from continuing operations before income tax	$	(7,523	)	$	4,404	$	527	$	(2,669	)	$	(5,261	)

	Three Months Ended September 30, 2023
	Reinsurance		Merchant Banking			Managed Services		Other			Total
Net premiums earned	$	-	$	-		$	-	$	-		$	-
Net holdings loss		-		(2,645	)		-		-			(2,645	)
Product sales		-		-			3,631		-			3,631
Services revenue		-		-			2,925		175			3,100
Total revenue	$	-	$	(2,645	)	$	6,556	$	175		$	4,086

(Loss) income from continuing operations before income tax	$	-	$	(2,645	)	$	244	$	(1,759	)	$	(4,160	)

	Nine Months Ended September 30, 2024
	Reinsurance			Merchant Banking			Managed Services		Other			Total
Net premiums earned	$	8,765		$	-		$	-	$	-		$	8,765
Net holdings loss		(7,991	)		(2,056	)		-		-			(10,047	)
Product sales		-			-			15,098		-			15,098
Services revenue		-			-			9,502		264			9,766
Total revenue	$	774		$	(2,056	)	$	24,600	$	264		$	23,582

(Loss) income from continuing operations before income tax	$	(7,573	)	$	(2,302	)	$	946	$	(7,349	)	$	(16,278	)

	Nine Months Ended September 30, 2023
	Reinsurance		Merchant Banking			Managed Services		Other			Total
Net premiums earned	$	-	$	-		$	-	$	-		$	-
Net holdings loss		-		(9,877	)		-		-			(9,877	)
Product sales		-		-			11,195		-			11,195
Services revenue		-		-			8,722		516			9,238
Total revenue	$	-	$	(9,877	)	$	19,917	$	516		$	10,556

(Loss) income from continuing operations before income tax	$	-	$	(8,685	)	$	703	$	(7,258	)	$	(15,240	)

	September 30, 2024
	Reinsurance		Merchant Banking		Managed Services		Other		Total
Segment assets	$	37,666	$	60,248	$	12,781	$	5,264	$	115,959

The following tables disaggregate the Company’s product sales and services revenue by major source for the three and nine months ended September 30, 2024 and 2023 (in thousands):

	Strong Entertainment		Other		Total		Strong Entertainment		Other		Total
	Three Months Ended September 30, 2024						Three Months Ended September 30, 2023
	Managed Services		Other		Total		Managed Services		Other		Total
Screen system sales	$	91	$	-	$	91	$	8	$	-	$	8
Digital equipment sales		5,202		-		5,202		3,434		-		3,434
Extended warranty sales		38		-		38		43		-		43
Other product sales		350		-		350		146		-		146
Total product sales		5,681		-		5,681		3,631		-		3,631
Field maintenance and monitoring services		1,965		-		1,965		2,008		-		2,008
Installation services		906		-		906		763		-		763
Other service revenues		244		-		244		154		175		329
Total service revenues		3,115		-		3,115		2,925		175		3,100
Total	$	8,796	$	-	$	8,796	$	6,556	$	175	$	6,731

	Strong Entertainment		Other		Total		Strong Entertainment		Other		Total
	Nine Months Ended September 30, 2024						Nine Months Ended September 30, 2023
	Managed Services		Other		Total		Managed Services		Other		Total
Screen system sales	$	194	$	-	$	194	$	131	$	-	$	131
Digital equipment sales		13,796		-		13,796		10,497		-		10,497
Extended warranty sales		126		-		126		143		-		143
Other product sales		982		-		982		424		-		424
Total product sales		15,098		-		15,098		11,195		-		11,195
Field maintenance and monitoring services		5,770		-		5,770		5,811		-		5,811
Installation services		3,078		-		3,078		2,603		-		2,603
Other service revenues		654		264		918		308		516		824
Total service revenues		9,502		264		9,766		8,722		516		9,238
Total	$	24,600	$	264	$	24,864	$	19,917	$	516	$	20,433

The following tables disaggregate the Company’s revenue by the timing of transfer of goods or services to the customer for the three and nine months ended September 30, 2024 and September 30, 2023 (in thousands):

	Strong Entertainment		Other		Total		Strong Entertainment		Other		Total
	Three Months Ended September 30, 2024						Three Months Ended September 30, 2023
	Managed Services		Other		Total		Managed Services		Other		Total
Point in time	$	7,250	$	-	$	7,250	$	5,025	$	15	$	5,040
Over time		1,546		-		1,546		1,531		160		1,691
Total	$	8,796	$	-	$	8,796	$	6,556	$	175	$	6,731

	Strong Entertainment		Other		Total		Strong Entertainment		Other		Total
	Nine Months Ended September 30, 2024						Nine Months Ended September 30, 2023
	Managed Services		Other		Total		Managed Services		Other		Total
Point in time	$	19,864	$	2	$	19,866	$	15,338	$	63	$	15,401
Over time		4,736		262		4,998		4,579		453		5,032
Total	$	24,600	$	264	$	24,864	$	19,917	$	516	$	20,433

At September 30, 2024, the unearned revenue amount associated with maintenance and monitoring services and extended warranty sales in which the Company is the primary obligor was $0.4 million. The Company expects to recognize $0.3 million of unearned revenue amounts during the remainder of 2024, $0.1 million during 2025, and immaterial amounts during 2026-2027.

The following tables summarize the Company’s products and services revenue by geographic area for the three and nine months ended September 30, 2024 and 2023 (in thousands):

	Three Months Ended September 30, 2024		Three Months Ended September 30, 2023		Nine Months Ended September 30, 2024		Nine Months Ended September 30, 2023
United States	$	8,693	$	6,639	$	24,443	$	20,120
Canada		2		5		21		15
Europe		-		71		266		208
Asia		-		-		3		-
Other		101		16		131		90
Total	$	8,796	$	6,731	$	24,864	$	20,433
Total revenue	$	8,796	$	6,731	$	24,864	$	20,433

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion in conjunction with our consolidated financial statements and related notes and information included elsewhere in this Quarterly Report on Form 10-Q, in our Annual Report for the year ended December 31, 2023 on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 14, 2024, and in subsequent filings with the SEC.

Unless context denotes otherwise, the terms “Company,” “Fundamental Global” “we,” “us,” and “our,” refer to Fundamental Global Inc., and its subsidiaries.

Cautionary Note about Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements are therefore entitled to the protection of the safe harbor provisions of these laws. These statements may be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “budget,” “can,” “contemplate,” “continue,” “could,” “envision,” “estimate,” “expect,” “evaluate,” “forecast,” “goal,” “guidance,” “indicate,” “intend,” “likely,” “may,” “might,” “outlook,” “plan,” “possibly,” “potential,” “predict,” “probable,” “probably,” “pro-forma,” “project,” “seek,” “should,” “target,” “view,” “will,” “would,” “will be,” “will continue,” “will likely result” or the negative thereof or other variations thereon or comparable terminology. In particular, discussions and statements regarding the Company’s future business plans and initiatives are forward-looking in nature. We have based these forward-looking statements on our current expectations, assumptions, estimates, and projections. While we believe these to be reasonable, such forward-looking statements are only predictions and involve a number of risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results, performance, or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements and may impact our ability to implement and execute on our future business plans and initiatives.

Management cautions that the forward-looking statements in this Quarterly Report on Form 10-Q are not guarantees of future performance, and we cannot assume that such statements will be realized or the forward-looking events and circumstances will occur. Factors that might cause such a difference include, without limitation: failure to realize cost savings, efficiencies and other expected benefits from recent acquisition and sale transactions and the anticipated Arrangement; general conditions in the global economy; our lack of operating history or established reputation in the reinsurance industry; our inability to obtain or maintain the necessary approvals to operate reinsurance subsidiaries; risks associated with operating in the reinsurance industry, including inadequately priced insured risks, credit risk associated with brokers we may do business with, and inadequate retrocessional coverage; our inability to execute on our investment and investment management strategy, including our strategy to invest in the risk capital of special purpose acquisition companies (SPACs); potential loss of value of holdings; risk of becoming an investment company; fluctuations in our short-term results as we implement our new business strategy; risks of being unable to attract and retain qualified management and personnel to implement and execute on our business and growth strategy; failure of our information technology systems, data breaches and cyber-attacks; our ability to establish and maintain an effective system of internal controls; our limited operating history as a public company; the requirements of being a public company and losing our status as a smaller reporting company or becoming an accelerated filer; any potential conflicts of interest between us and our controlling stockholders and different interests of controlling stockholders; potential conflicts of interest between us and our directors and executive officers; risks associated with our related party transactions and holdings; and risks associated with our holdings in SPAC’s, including the failure of any such SPAC to complete its initial business combination. Our expectations and future plans and initiatives may not be realized. If one of these risks or uncertainties materializes, or if our underlying assumptions prove incorrect, actual results may vary materially from those expected, estimated or projected. You are cautioned not to place undue reliance on forward-looking statements. The forward-looking statements are made only as of the date hereof and do not necessarily reflect our outlook at any other point in time. We do not undertake and specifically decline any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect new information, future events or developments.

Overview

Fundamental Global Inc. (“Fundamental Global”, the “Company”, “we”, or “us”), formerly known as FG Financial Group, Inc. (“FGF”), is engaged in reinsurance, asset management/merchant banking, and managed services. The Company’s principal business operations are conducted through its subsidiaries and affiliates.

On February 29, 2024, FGF and FG Group Holdings, Inc. (“FGH”), closed the plan of merger to combine the companies in an all-stock transaction (the “Merger”). In connection with the Merger, FGH common stockholders received one share of FGF common stock for each share of common stock of FGH held by such stockholder. Upon completion of the Merger, the combined company was renamed to Fundamental Global, and the common stock and Series A cumulative preferred stock of the combined company continue to trade on the Nasdaq under the tickers “FGF” and “FGFPP,” respectively.

On May 3, 2024, Strong Global Entertainment, Inc. (“Strong Global Entertainment”) entered into an acquisition agreement (the “Acquisition Agreement”) with FG Acquisition Corp., a special purpose acquisition company (“FGAC”), Strong/MDI Screen Systems, Inc. (“Strong/MDI”), FGAC Investors LLC, and CG Investments VII Inc. The transaction closed on September 25, 2024. As part of the closing, FGAC was renamed Saltire Holdings, Ltd (“Saltire”), and Saltire acquired all of the outstanding shares of one of our wholly-owned subsidiaries, Strong/MDI. As a result of the acquisition, Strong/MDI became a wholly-owned subsidiary of Saltire. See Note 4 for additional details.

On May 30, 2024, we and Strong Global Entertainment, an operating company in which we held approximately 76% of the Class A common shares, entered into a definitive arrangement agreement and plan of arrangement (the “Arrangement”) to combine the companies in an all-stock transaction. Upon completion of the arrangement, the stockholders of Strong Global Entertainment received 1.5 common shares of the Company for each share of Strong Global Entertainment. The transaction closed on September 30, 2024. Following the closing, Strong Global Entertainment ceased to exist, and its Class A Voting Common Shares without par value were delisted from NYSE American LLC and deregistered under the Exchange Act.

Results of Operations

As a result of the reverse merger of FGF and FGH, the condensed consolidated financial statements for the periods prior to the merger represent the results of FGH, as the accounting acquirer. For periods subsequent to the merger, the condensed consolidated financial statements represent the combined results of FGH and FGF. In addition, Strong Studios, Inc. and Strong/MDI, Inc are presented as discounted operations in the accompanying condensed consolidated financial statements.

Management’s discussion and analysis of financial condition and results of operations that follows reflects the continuing operations of the Company.

	Three Months Ended September 30,
	2024			2023			$ Change			% Change
	(dollars in thousands)
Revenues	$	10,453		$	4,086		$	6,367			155.8	%
Expenses		15,541			8,133			7,408			91.1	%
Loss from operations		(5,088	)		(4,047	)		(1,041	)		25.7	%
Bargain purchase on acquisition and other expense, net		(173	)		(113	)		(60	)		53.1	%
Net loss from continuing operations		(5,242	)		(3,854	)		(1,388	)		36.0	%

	Nine Months Ended September 30,
	2024			2023			$ Change			% Change
	(dollars in thousands)
Revenues	$	23,582		$	10,556		$	13,026			123.4	%
Expenses		41,306			25,543			15,763			61.7	%
Loss from operations		(17,724	)		(14,987	)		(2,737	)		18.3	%
Bargain purchase on acquisition and other income (expense), net		1,446			(253	)		1,699			n/m
Net loss from continuing operations		(16,168	)		(14,927	)		(1,241	)		8.3	%

Three Months Ended September 30, 2024 Compared with Three Months Ended September 30, 2023

Revenue

Revenue increased $6.4 million or 155.8% to $10.5 million for the three months ended September 30, 2024 from $4.1 million for the three months ended September 30, 2023.

The primary driver of revenue growth was the addition of $4.3 million of reinsurance premium revenue resulting from the Merger in February 2024 and a $2.2 million increase in revenue from STS. The growth in revenue from STS was due to the acquisition of the net assets of Innovative Cinema Solutions, LLC (“ICS”) in late 2023 combined with increased demand from cinema operators for installation services.

Expenses

Total expenses increased $7.4 million or 91.1% to $15.5 million for the three months ended September 30, 2024 from $8.1 million for the three months ended September 30, 2023. Expenses are comprised of cost of sales related to the Strong Entertainment operating business, costs of the reinsurance and asset management business and selling, general and administrative expenses.

The increase in total expenses was primarily due to the addition of the FGF business operations following the merger in February 2024 which added $6.0 million in reinsurance expenses and general and administrative expenses in the third quarter. In addition, the Company’s costs of revenue increased commensurate with the revenue growth at STS.

Loss from Operations

Loss from operations increased $1.0 million to $5.1 million for the three months ended September 30, 2024 from $4.0 million during the third quarter of 2023. Higher general and administrative costs due to the addition of FGF, which is not included in the prior period comparisons, were partially offset by improved gross profit contribution from STS.

Net Loss from Continuing Operations

Net loss from continuing operations increased to $5.2 million for the three months ended September 30, 2024 from $3.9 million during the third quarter of 2023. Improvements in gross profit from Strong Entertainment were partially offset by increased general and administrative costs related to both operating Strong Entertainment as a separate public company and the addition of FGF, which is not included in the prior period comparisons.

Nine Months Ended September 30, 2024 Compared with Nine Months Ended September 30, 2023

Revenue

Revenue increased $13.0 million or 123.4% to $23.6 million for the nine months ended September 30, 2024 from $10.6 million for the nine months ended September 30, 2023.

The primary driver of revenue growth was the addition of $8.8 million of reinsurance premium revenue resulting from the Merger in February 2024 and a $4.7 million increase in revenue from STS, partially offset by a $0.2 million increase in holdings losses compared with the prior year period. The growth in revenue from STS was due to the acquisition of the net assets of ICS in late 2023 and increased demand from cinema operators for installation services. Holdings income was unfavorable as the Company’s non-cash equity method losses were higher in the current year period. The nine months ended September 30, 2024 includes seven months of reinsurance and holdings operating results from the acquired FGF business lines.

Expenses

Total expenses increased $15.8 million or 61.7% to $41.3 million for the nine months ended September 30, 2024 from $25.5 million for the nine months ended September 30, 2023. Expenses are comprised of cost of sales related to STS operating business, costs of the reinsurance and asset management business and selling, general and administrative expenses.

The increase in total expenses was primarily due to the addition of the FGF business operations the Merger in February 2024 which added $11.0 million in reinsurance expenses and general and administrative expenses in the nine-month period. In addition, the Company’s costs of revenue and selling, general and administrative expenses increased with growth at STS and as a result of operating Strong Entertainment as a separate public company. The Company also recognized a $1.4 million non-cash impairment related to the sale of the Digital Ignition building.

Loss from Operations

Loss from operations increased $2.7 million or 18.3% to $17.7 million for the nine months ended September 30, 2024 from $15.0 million during the first quarter of 2023. Improved gross profit contributions from STS were offset by increased general and administrative costs related to both operating Strong Entertainment as a separate public company and the addition of FGF, which is not included in the prior period comparisons, as well as a non-cash impairment loss of $1.4 million related to the sale of Digital Ignition.

Net Loss from Continuing Operations

Net loss from continuing operations increased $1.2 million or 8.3% for the nine months ended September 30, 2024 from $14.9 million during the first nine months of 2023. Improved gross profit contributions from STS and a $1.8 million gain related to the FGF merger transaction were offset by increased general and administrative costs related to both operating Strong Entertainment as a separate public company and the addition of FGF which is not included in the prior period comparisons as well as a non-cash impairment loss of $1.4 million related to the sale of Digital Ignition.

Critical Accounting Estimates

Critical accounting estimates are those estimates made in accordance with generally accepted accounting principles that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. Actual results may differ materially from these estimates. Set forth below is qualitative and quantitative information necessary to understand the estimation uncertainty and the impact the critical accounting estimate has had or is reasonably likely to have on financial condition or results of operations, to the extent the information is material and reasonably available.

Other Holdings

Other holdings consist, in part, of equity holdings made in privately held companies accounted for under the equity method. As discussed further in Note 5, certain holdings held by our equity method investees are valued using Monte-Carlo simulation and option pricing models. Inherent in Monte-Carlo simulation and option pricing models are assumptions related to expected volatility and discount for lack of marketability of the underlying holding. Our investees estimate the volatility of these holdings based on the historical performance of various broad market indices blended with various peer companies which they consider as having similar characteristics to the underlying holding, as well as consideration of price and volatility of relevant publicly traded securities such as SPAC warrants. Our investees also consider the probability of a successful merger when valuing equity for SPACs that have not yet completed a business combination.

Current Expected Credit Loss

Upon adoption of ASU 2016-13, as amended, Financial Instruments – Credit Losses, the Company calculated an allowance for expected credit losses for its reinsurance balances receivable by applying a Probability of Default / Loss Given Default model. The model considers both the external collectability history as well as external loss history. The external loss history that the Company used included a long-term probability of liquidation study specific to insurance companies. Additionally, the life of each of the Company’s reinsurance treaties was also considered as the probability of default was calculated over the contractual length of the reinsurance contracts. The credit worthiness of a counterparty is evaluated by considering the credit ratings assigned by independent agencies and individually evaluating all the counterparties.

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Management determines the allowance for expected credit losses based on several factors, including overall customer credit quality, historical write-off experience and a specific analysis that projects the ultimate collectability of the account. As such, these factors may change over time causing the allowance level and provision for expected credit losses to be adjusted accordingly. Past due accounts are written off when our efforts have been unsuccessful in collecting amounts due.

Valuation of Net Deferred Income Taxes

The provision for income taxes is calculated based on the expected tax treatment of transactions recorded in the Company’s consolidated financial statements. In determining its provision for income taxes, the Company interprets tax legislation in a variety of jurisdictions and makes assumptions about the expected timing of the reversal of deferred income tax assets and liabilities and the valuation of net deferred income taxes.

The ultimate realization of the deferred income tax asset balance is dependent upon the generation of future taxable income during the periods in which the Company’s temporary differences reverse and become deductible. A valuation allowance is established when it is more likely than not that all or a portion of the deferred income tax asset balance will not be realized. In determining whether a valuation allowance is needed, management considers all available positive and negative evidence affecting specific deferred income tax asset balances, including the Company’s past and anticipated future performance, the reversal of deferred income tax liabilities, and the availability of tax planning strategies. To the extent a valuation allowance is established in a period, an expense must be recorded within the income tax provision in the consolidated statements of income and comprehensive income.

Premium Revenue Recognition

The Company participates in reinsurance quota-share contracts and estimates the ultimate premiums for the contract period. These estimates are based on information received from the ceding companies, whereby premiums are recorded as written in the same periods in which the underlying insurance contracts are written and are based on cession statements from cedents. These statements are received quarterly and in arrears, and thus, for any reporting lag, premiums written are estimated based on the portion of the ultimate estimated premiums relating to the risks underwritten during the lag period. Premium estimates are reviewed by management periodically. Such review includes a comparison of actual reported premiums to expected ultimate premiums. Based on management’s review, the appropriateness of the premium estimates is evaluated, and any adjustments to these estimates are recorded in the period in which they are determined. Changes in premium estimates, including premiums receivable, are not unusual and may result in significant adjustments in any period. A significant portion of amounts included in the caption “Reinsurance balances receivable” in the Company’s consolidated balance sheets represent estimated premiums written, net of commissions, brokerage, and loss and loss adjustment expense, and are not currently due based on the terms of the underlying contracts. Premiums written are generally recognized as earned over the contract period in proportion to the risk covered. Additional premiums due on a contract that has no remaining coverage period are earned in full when written. Unearned premiums represent the unexpired portion of reinsurance provided.

Revenue Recognition for Products and Services

The Company accounts for revenue using the following steps:

	●	Identify the contract, or contracts, with a customer;
	●	Identify the performance obligations in the contract;
	●	Determine the transaction price;
	●	Allocate the transaction price to the identified performance obligations; and
	●	Recognize revenue when, or as, the Company satisfies the performance obligations.

We combine contracts with the same customer into a single contract for accounting purposes when the contracts are entered into at or near the same time and the contracts are negotiated as a single commercial package, consideration in one contract depends on the other contract, or the services are considered a single performance obligation. If an arrangement involves multiple performance obligations, the items are analyzed to determine the separate units of accounting, whether the items have value on a standalone basis and whether there is objective and reliable evidence of their standalone selling price. The total contract transaction price is allocated to the identified performance obligations based upon the relative standalone selling prices of the performance obligations. The standalone selling price is based on an observable price for services sold to other comparable customers, when available, or an estimated selling price using a cost plus margin approach. We estimate the amount of total contract consideration we expect to receive for variable arrangements by determining the most likely amount we expect to earn from the arrangement based on the expected quantities of services we expect to provide and the contractual pricing based on those quantities. We only include some or a portion of variable consideration in the transaction price when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is subsequently resolved. We consider the sensitivity of the estimate, our relationship and experience with the client and variable services being performed, the range of possible revenue amounts and the magnitude of the variable consideration to the overall arrangement.

As discussed in more detail below, revenue is recognized when a customer obtains control of promised goods or services under the terms of a contract and is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. We typically do not have any material extended payment terms, as payment is due at or shortly after the time of the sale. Sales, value-added and other taxes collected concurrently with revenue producing activities are excluded from revenue.

We recognize contract assets or unbilled receivables related to revenue recognized for services completed but not yet invoiced to the clients. Unbilled receivables are recorded as accounts receivable when we have an unconditional right to contract consideration. A contract liability is recognized as deferred revenue when we invoice clients, or receive cash, in advance of performing the related services under the terms of a contract. Deferred revenue is recognized as revenue when we have satisfied the related performance obligation.

We defer costs to acquire contracts, including commissions, incentives and payroll taxes, if they are incremental and recoverable costs of obtaining a customer contract with a term exceeding one year. Deferred contract costs are reported within other assets and amortized to selling expense over the contract term, which generally ranges from one to five years. The Company has elected to recognize the incremental costs of obtaining a contract with a term of less than one year as a selling expense when incurred. We did not have any deferred contract costs as of September 30, 2024 or December 31, 2023.

Deferred Policy Acquisition Costs

Policy acquisition costs are costs that vary with, and are directly related to, the successful production of new and renewal reinsurance business, and consist principally of commissions, taxes, and brokerage expenses. If the sum of a contract’s expected losses and loss expenses and deferred acquisition costs exceeds associated unearned premiums and expected income on holdings, a premium deficiency is determined to exist. In this event, deferred acquisition costs are written off to the extent necessary to eliminate the premium deficiency. If the premium deficiency exceeds deferred acquisition costs, then a liability is accrued for the excess deficiency. There were no premium deficiency adjustments recognized during the periods presented herein.

Loss and Loss Adjustment Expense Reserves

Loss and loss adjustment expense reserve estimates are based on estimates derived from reports received from ceding companies. These estimates are periodically reviewed by the Company’s management and adjusted as necessary. Since reserves are estimates, the final settlement of losses may vary from the reserves established and any adjustments to the estimates, which may be material, are recorded in the period they are determined.

Loss estimates may also be based upon actuarial and statistical projections, an assessment of currently available data, predictions of future developments, estimates of future trends and other factors. Significant assumptions used by the Company’s management and third-party actuarial specialists include loss development factor selections, initial expected loss ratio selections, and weighting of methods used. The final settlement of losses may vary, perhaps materially, from the reserves recorded. All adjustments to the estimates are recorded in the period in which they are determined. GAAP does not permit establishing loss reserves, which include case reserves and incurred but not reported loss reserves, until the occurrence of an event which may give rise to a claim. As a result, only loss reserves applicable to losses incurred up to the reporting date are established, with no allowance for the establishment of loss reserves to account for expected future loss events. Generally, the Company obtains regular updates of premium and loss related information for the current and historical periods, which are utilized to update the initial expected loss ratio. We also experience lag between (i) claims being reported by the underlying insured to the Company’s cedent and (ii) claims being reported by the Company’s cedent to the Company. This lag may impact the Company’s loss reserve estimates. Cedent reports have pre-determined due dates (for example, thirty days after each month end). As a result, the lag depends in part upon the terms of the specific contract. The timing of the reporting requirements is designed so that the Company receives premium and loss information as soon as practicable once the cedent has closed its books. Accordingly, there should be a short lag in such reporting. Additionally, most of the contracts that have the potential for large single event losses have provisions that such loss notifications are provided to the Company immediately upon the occurrence of an event.

Stock-Based Compensation Expense

The Company uses the fair-value method of accounting for stock-based compensation awards granted. The Company has determined the fair value of its outstanding stock options on their grant date using the Black-Scholes option pricing model along with multiple Monte Carlo simulations to determine a derived service period as the options vest based upon meeting certain performance conditions. The Company determines the fair value of restricted stock units (“RSUs”) on their grant date using the fair value of the Company’s common stock on the date the RSUs were issued (for those RSU which vest solely based upon the passage of time). The fair value of these awards is recorded as compensation expense over the requisite service period, which is generally the expected period over which the awards will vest, with a corresponding increase to additional paid-in capital. When the stock options are exercised, or correspondingly, when the RSUs vest, the amount of proceeds together with the amount recorded in additional paid-in capital is recorded in shareholders’ equity.

Recent Accounting Pronouncements

See Note 2, Summary of Significant Accounting Policies, to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for a description of recently issued accounting pronouncements.

Liquidity and Capital Resources

The purpose of liquidity management is to ensure that there is sufficient cash to meet all financial commitments and obligations as they fall due. The liquidity requirements of the Company and its subsidiaries have been met primarily by funds generated from operations, proceeds from the sales of our common stock and credit facilities.

Cash Flows

The following table summarizes the Company’s consolidated cash flows for the nine months ended September 30, 2024 and 2023 (in thousands).

	Nine Months Ended September 30,
Summary of Cash Flows	2024			2023
Cash and cash equivalents from continuing operations – beginning of period	$	5,995		$	3,063

Net cash used in operating activities from continuing operations		(3,084	)		(1,648	)
Net cash provided by investing activities from continuing operations		10,393			58
Net cash (used in) provided by financing activities from continuing operations		(6,857	)		1,620
Effect of exchange rate changes on cash and cash equivalents		13			(15	)
Net increase in cash and cash equivalents from continuing operations		465			15

Cash and cash equivalents from continuing operations – end of period	$	6,460		$	3,078

For the nine months ended September 30, 2024, net cash used in operating activities from continuing operations was approximately $3.1 million, compared to $1.6 for the nine months ended September 30, 2023. Cash from operations decreased due to a net cash outflow for working capital, including an increase in net outflows related to our insurance business, which were partially offset by an improvement in Strong Global Entertainment’s results from operations.

For the nine months ended September 30, 2024, net cash provided by investing activities from continuing operations was approximately $10.4 million, compared to $0.1 million for the nine months ended September 30, 2023. Cash provided by investing activities during the nine months ended September 30, 2024 included $1.9 million of an increase in cash as a result of the Merger of FGF and FGH, $2.3 million of proceeds from the sale of equity securities and $6.1 million from the sale of the Digital Ignition building. Investing cash flows during each of the nine months ended September 30, 2024 and 2023 included approximately $0.1 million of capital expenditures in the managed services business.

For the nine months ended September 30, 2024, net cash used in financing activities from continuing operations was approximately $6.9 million, compared to cash provided by financing activities of $1.6 million for the nine months ended September 30, 2023. Cash used in financing activities during the nine months ended September 30, 2024 included $5.5 million of principal payments on debt and finances leases and $1.3 million of payments of dividends on our Series A Preferred Shares. Cash by financing activities during the nine months ended September 30, 2023 included $2.4 million of net proceeds from the IPO of Strong Global Entertainment, partially offset by $0.7 million of principal payments on debt and finances leases.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company’s management performed an evaluation under the supervision and with the participation of the Company’s principal executive officer and principal financial officer of the effectiveness of the design and operation of the Company’s disclosure controls and procedures, as such term is defined in Rules 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of September 30, 2024. Based upon this evaluation, the Company’s principal executive officer and principal financial officer concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report on Form 10-Q to ensure that information required to be disclosed in the reports that the Company files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and (ii) accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended September 30, 2024, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. As a result of the merger or FGF and FGH as of February 29, 2024, the Company’s overall control environment and its internal controls over financial reporting now incorporate the internal controls over financial reporting that continue in place for FGH as well as FGF.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is involved, from time to time, in certain legal disputes in the ordinary course of business. No such disputes, individually or in the aggregate, are expected to have a material effect on the Company’s business or financial condition.

Fundamental Global is named as a defendant in personal injury lawsuits based on alleged exposure to asbestos-containing materials. A majority of the cases involve product liability claims based principally on allegations of past distribution of commercial lighting products containing wiring that may have contained asbestos. Each case names dozens of corporate defendants in addition to Fundamental Global. In Fundamental Global’s experience, a large percentage of these types of claims have never been substantiated and have been dismissed by the courts. Fundamental Global has not suffered any adverse verdict in a trial court proceeding related to asbestos claims and intends to continue to defend these lawsuits. Under the Fundamental Global Asset Purchase Agreement, the Company agreed to indemnify Fundamental Global for future losses, if any related to current product liability or personal injury claims arising out of products sold or distributed in the U.S. by the operations of the businesses being transferred to the Company in the Separation, in an aggregate amount not to exceed $250,000 per year, as well as to indemnify Fundamental Global for all expenses (including legal fees) related to the defense of such claims. As of September 30, 2024, the Company has a loss contingency reserve of approximately $0.1 million, which represents the Company’s estimate of its potential losses related to the settlement of open cases. When appropriate, Fundamental Global may settle additional claims in the future. The Company does not expect the resolution of these cases to have a material adverse effect on its consolidated financial condition, results of operations or cash flows.

On April 29, 2024, Ravenwood-Productions LLC (“Ravenwood”) and Kevin V. Duncan (“Duncan” and, together with Ravenwood, the “Plaintiffs”) filed a civil complaint (the “Complaint”) against Strong Global Entertainment, certain affiliated entities, and certain current and former employees, officers and directors of the Strong Global Entertainment (collectively, the “Defendants”) in the United States District Court for the Central District of California. The Complaint claimed seven causes of action, each claim against some, or all, of the Defendants. In July 2024, Strong Global Entertainment entered into an agreement resulting in the settlement and dismissal of the Complaint. In connection with the settlement and dismissal, Strong Global Entertainment did not make any cash payments to the Plaintiffs. In addition, Strong Global Entertainment maintained a right to receive distributions to recover our investment and to participate in series profits (if any).

On July 16, 2024, we received notice that we were named as a defendant, along with over 500 other companies, in a civil action filed for cost recovery and contributions related to the release and/or threatened release of hazardous substances from a facility known as the BKK Class 1 Landfill in Los Angeles County California from periods prior to 1987. The action alleges that FGH is a successor to Pichel Industries, Inc. (“Pichel Industries”) and that Pichel Industries contributed waste to the landfill. We are in the early stages of evaluating the claim and determining our response.

ITEM 1A. RISK FACTORS

In addition to the risk factors previously disclosed in Part I, Item 1A. “Risk Factors” to our annual report on Form 10-K for the year ended December 31, 2023 filed with the SEC on March 14, 2024, we are subject to the following additional risk factors as a result of the Merger:

The Company is expected to incur significant costs related to the Merger and integration.

The Company has incurred and expects to incur certain non-recurring costs associated with the merger and integration of FGH and FGF. These costs include legal, financial advisory, accounting, consulting and other advisory fees, insurance, public company filing fees and other regulatory fees, printing costs and other related costs. The combined company may also incur expenses in connection with the integration of operations. There are many factors that could affect the total amount or the timing of the integration costs. Moreover, many of the costs that will be incurred are, by their nature, difficult to estimate accurately. These integration costs may result in the Company taking charges against earnings in future periods.

Integrating the businesses may be more difficult, costly or time consuming than expected and the Company may fail to realize the anticipated benefits of the Merger.

The success of the Company will depend, in part, on the Company’s ability to successfully combine and integrate the businesses of FGF and FGH in a manner that does not materially disrupt existing operations or result in decreased revenue or reputational harm. It is possible that the integration process could result in the loss of key employees, the disruption of either company’s ongoing businesses, difficulties in integrating operations and systems, including communications systems, administrative and information technology infrastructure and financial reporting and internal control systems, or inconsistencies in standards, controls, procedures and policies that adversely affect the companies’ ability to maintain relationships with clients, customers and employees or to achieve the anticipated benefits and cost savings of the Merger. Integration efforts between the two companies may also divert management attention and resources. These integration matters could have an adverse effect on the Company.

The future results following the Merger may suffer if the Company does not effectively manage its expanded operations.

The Company’s future success will depend, in part, upon its ability to manage this expanded business, which may pose challenges for management, including challenges related to the management and monitoring of new operations and associated increased costs and complexity. The Company may also face increased scrutiny from governmental authorities as a result of the significant increase in the size of its business. There can be no assurances that the Company will be successful or that it will realize the expected operating efficiencies, cost savings, revenue enhancements or other benefits currently anticipated from the Merger.

The Company may be unable to retain current personnel successfully following the Merger.

The success of the Company will depend in part on its ability to retain the talents and dedication of key employees and officers. It is possible that these employees and officers may decide not to remain with the Company. If FGF and FGH are unable to retain key employees, including management, who are critical to the successful integration and future operations of the companies, FGF and FGH could face disruptions in their operations, loss of existing customers, loss of key information, expertise or know-how and unanticipated additional recruitment costs. In addition, if key employees terminate their employment, the Company’s business activities may be adversely affected and management’s attention may be diverted from successfully integrating the businesses to hiring suitable replacements, all of which may cause the Company’s business to suffer. In addition, the Company may not be able to locate or retain suitable replacements for any key employees who leave either company.

We have no assurance of future business from any of our customers.

We estimate future revenue associated with customers and customer prospects for purposes of financial planning and measurement of our sales pipeline, but we have limited contractual assurance of future business from our customers. While we do have arrangements with some of our customers, customers are not required to purchase any minimum amounts and could stop doing business with us. Some customers maintain simultaneous relationships with our competitors and could shift more of their business away from us if they choose to do so in the future.

There is no guarantee that we will be able to service and retain or renew existing agreements, maintain relationships with any of our customers or business partners on acceptable terms or at all, or collect amounts owed to us from insolvent customers or business partners. The loss of any of our large customers could have a material adverse impact on our business.

Our operating results could be materially harmed if we are unable to accurately forecast demand for our products and services and adequately manage our inventory.

To ensure adequate inventory supply, we forecast inventory needs, place orders and plan personnel levels based on estimates of future demand. Our ability to accurately forecast demand for our products and services is limited and could be affected by many factors, including an increase or decrease in customer demand for our products and services or for products and services of our competitors, product and service introductions by competitors, unanticipated changes in general market conditions, effects of the COVID-19 pandemic and the weakening of economic conditions or consumer confidence in future economic conditions. If we fail to accurately forecast customer demand, we may experience excess inventory levels or a shortage of products available for sale. Conversely, if we underestimate customer demand for our products and services, we may not be able to deliver products to meet requirements, and this could result in damage to our brand and customer relationships and adversely affect our revenue and operating results.

Interruptions of, or higher prices of, components from our suppliers may affect our results of operations and financial performance.

A portion of our revenues is dependent on the distribution of products supplied by various key suppliers. If we fail to maintain satisfactory relationships with our suppliers, or if our suppliers experience significant financial difficulties, we could experience difficulty in obtaining needed goods and services. Some suppliers could also decide to reduce inventories or raise prices to increase cash flow. The loss of any one or more of our suppliers could have an adverse effect on our business, and we may be unable to secure alternative manufacturing arrangements. Even if we are able to obtain alternative manufacturing arrangements, such arrangements may not be on terms similar to our current arrangements, or we may be forced to accept less favorable terms in order to secure a supplier as quickly as possible so as to minimize the impact on our business operations. In addition, any required changes in our suppliers could cause delays in our operations and increase our production costs and new suppliers may not be able to meet our production demands as to volume, quality, or timeliness.

Geopolitical conditions, military conflicts, acts or threats of terrorism, natural disasters, pandemics, and other conditions or events beyond our control could adversely affect us.

Geopolitical conditions, military conflicts (including Russia’s invasion of Ukraine), acts or threats of terrorism, natural disasters, pandemics (including the COVID-19 pandemic), and other conditions or events beyond our control may adversely affect our business, results of operations, financial condition, or prospects. For example, military conflicts, acts or threats of terrorism, and political, financial, or military actions taken in response could adversely affect general economic, business, or market conditions and, in turn, us, especially as an intermediary within the financial system. In addition, nation states engaged in warfare or other hostile actions may directly or indirectly use cyberattacks against financial systems and financial-services companies like us to exert pressure on one another or other countries with influence or interests at stake. We also could be negatively impacted if our key personnel, a significant number of our employees, or our systems or infrastructure were to become unavailable or damaged due to a pandemic, natural disaster, war, act of terrorism, accident, or similar cause. These same risks and uncertainties arise too for the service providers and counterparties on whom we depend as well as their own third-party service providers and counterparties.

The most notable impact of COVID-19 on our results of operations was the significant impact to our customers, specifically those in the entertainment and advertising industries, and their ability and willingness to purchase our products and services. A significant number of our customers temporarily ceased operations during the pandemic. For instance, many movie theaters and other entertainment centers were forced to close or curtail their hours and, correspondingly, terminated or deferred their non-essential capital expenditures. The COVID-19 pandemic also adversely affected film production and the pipeline of feature films available in the short- and long-term. We were also required to temporarily close our screen manufacturing facility in Canada due to the governmental response to COVID-19, experienced lower revenues from field services, and saw a reduction in non-recurring time and materials-based services. The impact of any future outbreak of contagious disease, or a worsening or resurgence of COVID-19, is not readily ascertainable, is uncertain and cannot be predicted, but could have an adverse impact on the Company’s business, financial condition and results of operations.

In the case of Russia’s invasion of Ukraine, security risks as well as increases in fuel and other commodity costs, supply-chain disruptions, and associated inflationary pressures have impacted our business the most.

We may also experience one or more of the following conditions that could have a material adverse impact on our business operations and financial condition: adverse effects on our strategic partners’ businesses or on the businesses of companies in which we hold equity stakes; impairment charges; extreme currency exchange-rate fluctuations; inability to recover costs from insurance carriers; and business continuity concerns for us, our customers and our third-party vendors.

These conditions and events and others like them are highly complex and inherently uncertain, and their effect on our business, results of operations, financial condition, and prospects in the future cannot be reliably predicted.

Changes in general economic conditions, geopolitical conditions, domestic and foreign trade policies, monetary policies and other factors beyond our control may adversely impact our business and operating results.

Our operations and performance may depend on global, regional, economic and geopolitical conditions. Russia’s invasion and military attacks on Ukraine have triggered significant sanctions from North American and European leaders. These events continue to develop and escalate, creating increasingly volatile global economic conditions. Resulting changes in North American trade policy could trigger retaliatory actions by Russia, its allies and other affected countries, including China, resulting in a “trade war.” A trade war could result in increased costs for raw materials that we use in our manufacturing and could otherwise limit our ability to sell our products abroad. These increased costs would have a negative effect on our financial condition and profitability. Furthermore, events like the military conflict between Russia and Ukraine may increase the likelihood of supply interruptions and further hinder our ability to find the materials we need to make our products. If the conflict between Russia and Ukraine continues for a long period of time, or if other countries become further involved in the conflict, we could face significant adverse effects to our business and financial condition.

Environmental, social and governance matters may impact our business and reputation.

Increasingly, in addition to the importance of their financial performance, companies are being judged by their performance on a variety of environmental, social and governance (“ESG”) matters, which are considered to contribute to the long-term sustainability of companies’ performance.

A variety of organizations measure the performance of companies on ESG topics, and the results of these assessments are widely publicized. In addition, investments in funds that specialize in companies that perform well in such assessments are increasingly popular, and major institutional investors have publicly emphasized the importance of ESG measures to their investment decisions. Topics taken into account in such assessments include, among others, companies’ efforts and impacts on climate change and human rights, ethics and compliance with law, diversity and the role of companies’ board of directors in supervising various sustainability issues.

ESG goals and values are embedded in our core mission and vision, and we consider their potential impact on the sustainability of our business over time and the potential impact of our business on society. However, in light of investors’ increased focus on ESG matters, there can be no certainty that we will manage such issues successfully, or that we will successfully meet society’s expectations as to our proper role. This could lead to risk of litigation or reputational damage relating to our ESG policies or performance.

Further, possible actions to address ESG issues may not maximize short-term financial results and may yield financial results that conflict with the market’s expectations. We have and may in the future make business decisions that may reduce our short-term financial results if we believe that the decisions are consistent with our ESG goals, which we believe will improve our financial results over the long-term. These decisions may not be consistent with the short-term expectations of our stockholders and may not produce the long-term benefits that we expect, in which case our business, financial condition, and operating results could be harmed.

The markets for our products and services are highly competitive and if market share is lost, we may be unable to lower our cost structure quickly enough to offset the loss of revenue.

The domestic and international markets for our product lines are highly competitive, evolving and subject to rapid technological and other changes. We expect the intensity of competition in each of these areas to continue in the future for a number of reasons including:

	●	Certain of our competitors in the digital equipment industry have longer operating histories and greater financial, technical, marketing and other resources than we do, which, among other things, may permit them to adopt aggressive pricing policies. As a result, we may suffer from pricing pressures that could adversely affect our ability to generate revenues and our results of operations. Some of our competitors also have greater name and brand recognition and a larger customer base than us.

	●	Some of our competitors are manufacturing their own digital equipment while we employ a distribution business model through our distribution agreements with NEC Display Solutions of America, Inc., Barco, Inc. and certain other suppliers. As a result, we may suffer from pricing pressures that could adversely affect our ability to generate revenues.

	●	Suppliers could decide to utilize their current sales force to supply their products directly to customers rather than utilizing channels.

In addition, we face competition for consumer attention from other forms of entertainment, including streaming services and other forms of entertainment that may impact the cinema industry. The other forms of entertainment may be more attractive to consumers than those utilizing our technologies, which could harm our business, prospects and operating results.

For these and other reasons, we must continue to enhance our technologies and our existing products and services, and introduce new, high-quality technologies and products and services to meet the wide variety of competitive pressures that we face. If we are unable to compete successfully, our business, prospects and results of operations will be materially adversely impacted.

We depend in part on distributors, dealers and resellers to sell and market our products and services, and our failure to maintain and further develop our sales channels could harm our business.

In addition to our in-house sales force, we sell some of our products and services through distributors, dealers and resellers. As we do not have long-term contracts and these agreements may be cancelled at any time, any changes to our current mix of distributors could adversely affect our gross margin and could negatively affect both our brand image and our reputation. If our distributors, dealers and resellers are not successful in selling our products, our revenue would decrease. In addition, our success in expanding and entering into new markets internationally will depend on our ability to establish relationships with new distributors. If we do not maintain our relationship with existing distributors or develop relationships with new distributors, dealers and resellers our ability to grow our business and sell our products and services could be adversely affected and our business may be harmed.

Our capital allocation strategy may not be successful, which could adversely impact our financial condition.

We intend to continue investing part of our cash balances in public and private companies and may engage in mergers, acquisitions and divestitures. We intend our holdings in public companies to be made in circumstances where we believe that we will be able to exercise some degree of influence or control. We may also continue to invest in private companies or other areas, including acquisitions of businesses. These types of holdings are riskier than holding our cash balances as bank deposits or, for example, conservative options such as treasury bonds or money market funds. There can be no assurance that we will be able to maintain or enhance the value or the performance of the companies in which we have invested or may invest in the future, or that we will achieve returns or benefits from these holdings. Under certain circumstances, significant declines in the fair values of these holdings may require the recognition of other-than-temporary impairment losses. We may lose all or part of our holdings relating to such companies if their value decreases as a result of their financial performance or for any other reason. If our interests differ from those of other investors in companies over which we do not have control, we may be unable to effect any change at those companies. We are not required to meet any diversification standards, and our holdings may continue to remain concentrated. In addition, we may seek to sell some or all of our existing businesses as part of our holding company strategy.

If our capital allocation strategy is not successful or we achieve less than expected returns from these holdings, it could have a material adverse effect on us. The Board of Directors may also change our capital allocation strategy at any time, and such changes could further increase our exposure, which could adversely impact us.

If we are unable to maintain our brand and reputation, our business, results of operations and prospects could be materially harmed.

Our business, results of operations and prospects depend, in part, on maintaining and strengthening our brand and reputation for providing high quality products and services. Reputational value is based in large part on perceptions. Although reputations may take decades to build, any negative incidents can quickly erode trust and confidence, particularly if they result in adverse publicity, governmental investigations or litigation. If problems with our products cause operational disruption or other difficulties, or there are delays or other issues with the delivery of our products or services, our brand and reputation could be diminished. Damage to our reputation could also arise from actual or perceived legal violations, product safety issues, data security breaches, actual or perceived poor employee relations, actual or perceived poor service, actual or perceived poor privacy practices, operational or sustainability issues, actual or perceived ethical issues or other events within or outside of our control that generate negative publicity with respect to us. Any event that has the potential to negatively impact our reputation could lead to lost sales, loss of new opportunities and retention and recruiting difficulties. If we fail to promote and maintain our brand and reputation successfully, our business, results of operations and prospects could be materially harmed.

Our operating margins may decline as a result of increasing product costs.

Our business is subject to pressure on pricing and costs caused by many factors, including supply chain disruption, intense competition, the cost of components used in our products, labor costs, constrained sourcing capacity, inflationary pressure, pressure from customers to reduce the prices we charge for our products and services, and changes in consumer demand. Factors including global supply chain disruptions have resulted in shortages in labor, materials and services. Such shortages have resulted in cost increases, particularly for labor, and could continue to increase. Costs for the raw materials used to manufacture our products are affected by, among other things, energy prices, demand, fluctuations in commodity prices and currency, shipping costs and other factors that are generally unpredictable and beyond our control such as the escalating military conflict between Russia and Ukraine. Increases in the cost of raw materials used to manufacture our products or in the cost of labor and other costs of doing business internationally could have an adverse effect on, among other things, the cost of our products, gross margins, operating results, financial condition, and cash flows.

Our sales cycle can be long and timing of orders and shipments unpredictable, particularly with respect to large enterprises, which could harm our business and operating results.

The timing of our sales is difficult to predict, and customers typically order screen and other distribution products with limited advance notice which impacts our ability to forecast revenue and manage operations. For our managed service offerings, the sales cycle can be long and involve educating and achieving buy-in from multiple parts of a customer organization. As a result, the length and variable nature of customer ordering patterns and timing could materially adversely impact our business and results of operations.

We are substantially dependent upon significant customers who could cease purchasing our products at any time.

The Company’s top ten customers accounted for approximately 43% and 40% of consolidated products and services revenues during the three and nine months ended September 30, 2024, respectively. Trade accounts receivable from these customers represented approximately 59% of net consolidated receivables at September 30, 2024. One of the Company’s customers accounted for more than 10% of both its consolidated net revenues during the nine months ended September 30, 2024 and its net consolidated receivables as of September 30, 2024. While the Company believes its relationships with such customers are stable, most arrangements are made by purchase order and are terminable at will by either party. A significant decrease or interruption in business from the Company’s significant customers could have a material adverse effect on the Company’s business, financial condition and results of operations. The Company could also be adversely affected by such factors as changes in foreign currency rates and weak economic and political conditions in each of the countries in which the Company sells its products and offers its services.

Government agencies in Canada have notified Strong/MDI that certain modifications are required to be made to the Joliette Plant in order to meet safety and emissions standards.

Strong/MDI has been informed by certain government agencies in Canada, including but not limited to, the Joliette Fire Department, and the Quebec Ministry of the Environment, that certain aspects of the Joliette Plant must be modified to fully comply with safety and emissions standards. Strong/MDI has implemented changes to address some, but not all, of the identified requirements.

The required modifications include installing new air evaluator and exhaust chimneys as well as modifying the walls and doors in the paint and coatings area to achieve a 2-hour fire resistance standard. In addition, it was required that we modify certain mezzanine areas to reduce their size and upgrade construction to non-combustible materials, add an additional exterior access, and purchase spill resistant pallets. If we fail to address the requirements, it could be possible that we could incur penalties or production could be interrupted. The expansion could cost more or take longer than our expectations and could result in production disruptions in the facility during the construction process.

Our business is subject to the economic and political risks of selling products in foreign countries.

We expect that international sales will continue to be important to our business for the foreseeable future. Foreign sales are subject to general political and economic risks, including the adverse impact of changes to international trade and tariff policies, including in the U.S. and China, which have created uncertainty regarding international trade, unanticipated or unfavorable circumstances arising from host country laws or regulations, unfavorable changes in U.S. policies on international trade and investment, the imposition of governmental economic sanctions on countries in which we do business, quotas, capital controls or other trade barriers, whether adopted by individual governments or addressed by regional trade blocks, threats of war, terrorism or governmental instability, currency controls, fluctuating exchange rates with respect to sales not denominated in U.S. dollars, changes in import/export regulations, tariffs and freight rates, potential negative consequences from changes to taxation policies, restrictions on the transfer of funds into or out of a country and the disruption of operations from labor, political and other disturbances, such as the impact of the coronavirus and other public health epidemics or pandemics. Government policies on international trade and investment can affect the demand for our products, impact the competitive position of our products or prevent us from being able to sell or manufacture products in certain countries. The implementation of more restrictive trade policies, such as higher tariffs or new barriers to entry, in countries in which we sell large quantities of products and services could negatively impact our business, financial condition and results of operations. For example, a government’s adoption of “buy national” policies or retaliation by another government against such policies could have a negative impact on our results of operations. If we were unable to navigate the foreign regulatory environment, or if we were unable to enforce our contractual rights in foreign countries, our business could be adversely impacted. Any of these events could reduce our sales, limit the prices at which we can sell our products, interrupt our supply chain or otherwise have an adverse effect on our operating performance.

To the extent that orders are denominated in foreign currencies, our reported sales and earnings are subject to foreign exchange fluctuations. In addition, there can be no assurance that our remaining international customers will continue to accept orders denominated in U.S. dollars. For those sales which are denominated in U.S. dollars, a weakening in the value of foreign currencies relative to the U.S. dollar could have a material adverse impact on us by increasing the effective price of our products in international markets. Certain areas of the world are also more cost conscious than the U.S. market and there are instances where our products are priced higher than local manufacturers. We are also exposed to foreign currency fluctuations between the Canadian and U.S. dollar due to our screen manufacturing facility in Canada where a majority of its sales are denominated in the U.S. dollar while its expenses are denominated in Canadian currency. We cannot predict the effects of exchange rate fluctuations upon our future operating results because of the number of currencies involved, the variability of currency exposures and the potential volatility of currency exchange rates.

Any of these factors could adversely affect our foreign activities and our business, financial condition and results of operations.

The risk of non-compliance with U.S. and foreign laws and regulations applicable to our international operations could have a significant impact on our financial condition, results of operations and strategic objectives.

Our global operations subject us to regulation by U.S. federal and state laws and multiple foreign laws, regulations and policies, which could result in conflicting legal requirements. These laws and regulations are complex, change frequently, have tended to become more stringent over time and increase our cost of doing business. These laws and regulations include import and export control, environmental, health and safety regulations, data privacy requirements, international labor laws and work councils and anti-corruption and bribery laws such as the U.S. Foreign Corrupt Practices Act, the U.N. Convention Against Bribery and local laws prohibiting corrupt payments to government officials. We are subject to the risk that we, our employees, our affiliated entities, contractors, agents or their respective officers, directors, employees and agents may take action determined to be in violation of any of these laws. An actual or alleged violation could result in substantial fines, sanctions, civil or criminal penalties, debarment from government contracts, curtailment of operations in certain jurisdictions, competitive or reputational harm, litigation or regulatory action and other consequences that might adversely affect our financial condition, results of operations and strategic objectives.

In addition, we are subject to Canadian and foreign anti-corruption laws and regulations such as the Canadian Corruption of Foreign Public Officials Act. In general, these laws prohibit a company and its employees and intermediaries from bribing or making other prohibited payments to foreign officials or other persons to obtain or retain business or gain some other business advantage. We cannot predict the nature, scope or effect of future regulatory requirements to which our operations might be subject or the manner in which existing laws might be administered or interpreted. Failure by us or our predecessors to comply with the applicable legislation and other similar foreign laws could expose us and our senior management to civil and/or criminal penalties, other sanctions and remedial measures, legal expenses and reputational damage, all of which could materially and adversely affect our business, financial condition and results of operations. Likewise, any investigation of any alleged violations of the applicable anti-corruption legislation by Canadian or foreign authorities could also have an adverse impact on our business, financial condition and results of operations.

A reversal of the U.S. economic recovery and a return to volatile or recessionary conditions in the United States or abroad could adversely affect our business or our access to capital markets in a material manner.

Worsening economic and market conditions, downside shocks, or a return to recessionary economic conditions could serve to reduce demand for our products and adversely affect our operating results. These economic conditions may also impact the financial condition of one or more of our key suppliers, which could affect our ability to secure product to meet our customers’ demand. In addition, a downturn in the cinema market could impact the valuation and collectability of certain receivables held by us. Our results of operations and the implementation of our business strategy could be adversely affected by general conditions in the global economy, including financial and economic conditions that are outside of our control, including those resulting from supply chain delays or interruptions, labor shortages, wage pressures, rising inflation, geopolitical events, or interruptions and other force majeure events, such as the COVID-19 pandemic. The most recent global financial crisis caused by COVID-19 resulted in extreme volatility and disruptions in the capital and credit markets. A severe or prolonged economic downturn could result in a variety of risks to our business and could have a material adverse effect on us. We could also be adversely affected by such factors as changes in foreign currency rates and weak economic and political conditions in each of the countries in which we sell our products.

Any potential future acquisitions, strategic investments, entry into new lines of business, divestitures, mergers or joint ventures may subject us to significant risks, any of which could harm our business.

Our long-term strategy may include identifying and acquiring, investing in or merging with suitable candidates on acceptable terms, entry into new lines of business and markets or divesting of certain business lines or activities. In particular, over time, we may acquire, make investments in or merge with providers of product offerings that complement our business or may terminate such activities. Mergers, acquisitions, divestitures and entries into new lines of business include a number of risks and present financial, managerial and operational challenges, including but not limited to:

	●	diversion of management attention from running our existing business;

	●	possible material weaknesses in internal control over financial reporting;

	●	increased expenses including legal, administrative and compensation expenses related to newly hired or terminated employees;

	●	increased costs to integrate, develop or, in the case of a divestiture, separate the technology, personnel, customer base and business practices of the acquired, new or divested business or assets;

	●	potential exposure to material liabilities not discovered in the due diligence process;

	●	potential adverse effects on reported results of operations due to possible write-down of goodwill and other intangible assets associated with acquisitions;

	●	potential damage to customer relationships or loss of synergies in the case of divestitures; and

	●	unavailability of acquisition financing or inability to obtain such financing on reasonable terms.

Any acquired business, technology, service or product, or entry into a new line of business could significantly under-perform relative to our expectations and may not achieve the benefits we expect. For all these reasons, our pursuit of an acquisition, investment, new line of business, divestiture, merger or joint venture could cause our actual results to differ materially from those anticipated.

Failure to effectively utilize or successfully assert intellectual property rights could negatively impact us.

We own or otherwise have rights to various trademarks and trade names used in conjunction with the sale of our products, the most significant of which is Strong®. We rely on trademark laws to protect these intellectual property rights. We cannot assure that these intellectual property rights will be effectively utilized or, if necessary, successfully asserted. There is a risk that we will not be able to obtain and perfect our own intellectual property rights, or, where appropriate, license from others, intellectual property rights necessary to support new product introductions. Our intellectual property rights, and any additional rights we may obtain in the future, may be invalidated, circumvented or challenged in the future. Our failure to perfect or successfully assert intellectual property rights could harm our competitive position and could negatively impact us.

Natural disasters and other catastrophic events beyond our control could adversely affect our business operations and financial performance.

The occurrence of one or more natural disasters, such as fires, hurricanes, tornados, tsunamis, floods and earthquakes, geo-political events, such as civil unrest in a country in which our suppliers are located or terrorist or military activities disrupting transportation, communication or utility systems, or other highly disruptive events, such as nuclear accidents, public health epidemics or pandemics, such as the COVID-19 pandemic, unusual weather conditions or cyber-attacks, could adversely affect our operations and financial performance. In the event of a major disruption caused by the occurrence of any of the aforementioned events, we may lose the services of our employees or experience system interruptions, which could lead to diminishment of our business operations. Such events could result, among other things, in operational disruptions, physical damage to or destruction or disruption of one or more of our properties or properties used by third parties in connection with the supply of products or services to us, the lack of an adequate workforce in parts or all of our operations and communications and transportation disruptions. We cannot anticipate all the ways in which the current global health crisis and financial market conditions could adversely impact our business. These factors could also cause consumer confidence and spending to decrease or result in increased volatility in the United States and global financial markets and economy. Such occurrences could have a material adverse effect on us and could also have indirect consequences such as increases in the costs of insurance if they result in significant loss of property or other insurable damage.

The insurance that we maintain may not fully cover all potential exposures.

We maintain property, business interruption and casualty insurance but such insurance may not cover all risks associated with the hazards of our business and is subject to limitations, including deductibles and maximum liabilities covered. We are potentially at risk if one or more of our insurance carriers fail. Additionally, severe disruptions in the domestic and global financial markets could adversely impact the ratings and survival of some insurers. In the future, we may not be able to obtain coverage at current levels, and our premiums may increase significantly on coverage that we maintain.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

Exhibit		Description
3.1		Articles of Incorporation of Fundamental Global Inc. (incorporated by reference to exhibit 3.3 to the Current Report on Form 8-K filed with the SEC on December 9, 2022).
3.2		Certificate of Amendment to Amended and Restated Articles of Incorporation of Fundamental Global Inc. (incorporated by reference to exhibit 3.1 to the Current Report on Form 8-K filed with the SEC on February 29, 2024).
3.3		Certificate of Change of Fundamental Global Inc. (incorporated by reference to exhibit 3.1 to the Current Report on Form 8-K filed with the SEC on October 30, 2024).
3.4		Bylaws of Fundamental Global Inc. (incorporated by reference to exhibit 3.4 to the Current Report on Form 8-K filed with the SEC on December 9, 2022).
31.1*		Certification of Principal Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act.
31.2*		Certification of Principal Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act.
32.1**		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**		Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101		The following materials from Fundamental Global Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets (unaudited); (ii) the Condensed Consolidated Statements of Operations (unaudited); (iii) the Condensed Consolidated Statements of Comprehensive Loss (unaudited); (iv) the Condensed Consolidated Statements of Stockholders’ Equity (unaudited); (v) the Condensed Consolidated Statements of Cash Flows (unaudited); and (vi) the Notes to Condensed Consolidated Financial Statements (unaudited).
104		XBRL Cover Page Interactive Data File (embedded within the Inline XBRL document).

* Filed herewith.

** Furnished herewith.

SIGNATURES

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 thereunto duly authorized.

	FUNDAMENTAL GLOBAL INC.

Date: November 14, 2024	By:	/s/ D. Kyle Cerminara
		D. Kyle Cerminara, Chief Executive Officer
		(principal executive officer)

Date: November 14, 2024	By:	/s/ Mark D. Roberson
		Mark D. Roberson, Chief Financial Officer
		(principal financial officer)

Date: November 14, 2024	By:	/s/ Todd R. Major
		Todd R. Major, Chief Accounting Officer
		(principal accounting officer)