Heritage Global Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Heritage Global Inc. filed its Q1 2024 10-Q, detailing financial positions and subsidiary activities.</b>

AI Summary

Heritage Global Inc. (HGBL) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Heritage Global Inc. filed a 10-Q report for the period ending March 31, 2024. The filing includes data related to various subsidiaries and investments, such as HGC Funding LLC and Knfh LLC. Specific financial elements like Retained Earnings, Treasury Stock, and Common Stock are detailed for different periods. The report references business addresses in San Diego, CA, and former company names including C2 Global Technologies Inc. Key dates and financial instruments like the 2023 Credit Facility are mentioned.

Why It Matters

For investors and stakeholders tracking Heritage Global Inc., this filing contains several important signals. This 10-Q provides a quarterly update on Heritage Global's financial health and operational status, crucial for investors to assess performance and make informed decisions. The detailed breakdown of equity, investments, and financial instruments offers insights into the company's asset management and potential future growth drivers.

Risk Assessment

Risk Level: low — Heritage Global Inc. shows low risk based on this filing. The filing is a standard 10-Q, providing routine financial disclosures without immediate red flags.

Analyst Insight

Monitor future filings for revenue growth and profitability trends from the disclosed segments and investments.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-05-09 — Filing Date (Filed As Of Date)
• 7389 — SIC Code (Standard Industrial Classification)
• FL — State of Incorporation (State of Incorporation)

Key Players & Entities

• Heritage Global Inc. (company) — Filer of the 10-Q report.
• 2024-03-31 (date) — Reporting period end date for the 10-Q.
• HGC Funding LLC (company) — Mentioned as an equity method investment.
• Knfh LLC (company) — Mentioned as an equity method investment.
• C2 Global Technologies Inc (company) — Former company name.
• San Diego, CA (location) — Business address location.
• 2023 Credit Facility (financial_instrument) — Referenced financial instrument.
• 10-Q (document) — Type of filing.

FAQ

Industry Context

Heritage Global Inc. operates within the business services sector, focusing on auctions, liquidations, and specialty lending.

Regulatory Implications

The company is subject to standard SEC regulations for public filings, including the requirement to submit 10-Q reports quarterly.

What Investors Should Do

1. Review the full 10-Q for detailed financial statements and management discussion.
2. Analyze segment performance and investment returns for growth opportunities.
3. Assess any new risk factors or changes in existing ones disclosed in the filing.

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending March 31, 2024. No prior filing data is available for comparison within this context.

Key Financial Figures

• $0.01 — nge on which registered Common stock, $0.01 par value HGBL The Nasdaq Stock Market

Filing Documents

• hgbl-20240331.htm (10-Q) — 1478KB
• hgbl-ex31_1.htm (EX-31.1) — 13KB
• hgbl-ex31_2.htm (EX-31.2) — 13KB
• hgbl-ex32_1.htm (EX-32.1) — 5KB
• hgbl-ex32_2.htm (EX-32.2) — 5KB
• img162489445_0.jpg (GRAPHIC) — 569KB
• 0000950170-24-056832.txt (&nbsp;) — 7480KB
• hgbl-20240331.xsd (EX-101.SCH) — 954KB
• hgbl-20240331_htm.xml (XML) — 1079KB

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023 3 Condensed Consolidated Statements of Income for the three months ended March 31, 2024 and 2023 (unaudited) 4 Condensed Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (unaudited) 6 Notes to Unaudited Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 Item 4.

Controls and Procedures

Controls and Procedures 28 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 29 Item 1A.

Risk Factors

Risk Factors 29 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29 Item 3. Defaults Upon Senior Securities 29 Item 4. Mine Safety Disclosures 29 Item 5. Other Information 29 Item 6. Exhibits 30 Signature Page 31 2

– FINANC I AL INFORMATION

PART I – FINANC I AL INFORMATION

– Financ ial Statements

Item 1 – Financ ial Statements. HERITAGE GLOBAL INC. CONDENSED CONSOLIDA TED BALANCE SHEETS (In thousands of US dollars, except share and per share amounts) March 31, 2024 December 31, 2023 ASSETS (unaudited) Current assets: Cash and cash equivalents $ 15,577 $ 12,279 Accounts receivable (net of allowance for credit losses of $ 126 in 2024 and $ 132 in 2023) 1,558 1,910 Current portion of notes receivable (net of allowance for credit losses of $ 643 in 2024 and $ 650 in 2023) 6,514 6,581 Inventory – equipment 4,735 5,074 Other current assets 490 448 Total current assets 28,874 26,292 Non-current portion of notes receivable, net 10,698 10,890 Equity method investments 20,271 21,361 Right-of-use assets 2,377 2,539 Property and equipment, net 1,684 1,705 Intangible assets, net 3,655 3,753 Goodwill 7,446 7,446 Deferred tax assets 8,637 9,115 Other assets 64 67 Total assets $ 83,706 $ 83,168 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 4,564 $ 7,237 Payables to sellers 6,816 4,975 Current portion of third party debt 1,765 1,733 Current portion of lease liabilities 779 789 Total current liabilities 13,924 14,734 Non-current portion of third party debt 5,040 5,495 Non-current portion of lease liabilities 1,710 1,859 Total liabilities 20,674 22,088 Stockholders' equity: Preferred stock, $ 10.00 par value, authorized 10,000,000 shares; issued and outstanding 563 of Series N as of March 31, 2024 and December 31, 2023; with liquidation preference over common stockholders equivalent to $ 1,000 per share 6 6 Common stock, $ 0.01 par value, authorized 300,000,000 shares; issued 37,336,392 and 37,157,616 shares as of March 31, 2024 and December 31, 2023, respectively; and outstanding 36,940,217 and 36,761,441 shares as of March 31, 2024 and December

View Full Filing

View this 10-Q filing on SEC EDGAR