HG Holdings, Inc. 10-Q: No Catastrophe Risk Commitments

TL;DR

HG Holdings 10-Q: No unfunded commitments on catastrophe risk investments as of June 30, 2024.

AI Summary

HG Holdings, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported no unfunded commitments related to its investment in a limited partnership that focuses on property catastrophe risk through reinsurance. The underlying assets of this partnership have a duration of one year or less, with annual redemption or reinvestment options for the company's proceeds.

Why It Matters

This filing indicates HG Holdings, Inc. has no outstanding financial obligations related to its property catastrophe risk investments, suggesting a contained exposure to potential natural disaster-related losses.

Risk Assessment

Risk Level: low — The company explicitly states no unfunded commitments related to its investment in a limited partnership focused on property catastrophe risk.

Key Numbers

• 35,000,000 — Total Assets (Indicates the overall size of the company's asset base at the end of the period.)
• 2,813,214 — Net Income (Represents the company's profitability for the period.)
• 2,861,547 — Revenue (Shows the total income generated from the company's operations.)

Key Players & Entities

• HG Holdings, Inc. (company) — Filer of the 10-Q
• June 30, 2024 (date) — End of reporting period
• 2115 E. 7TH STREET, SUITE 101 (address) — Company business and mailing address
• CHARLOTTE, NC 28211 (address) — Company business and mailing address

FAQ

Key Financial Figures

• $0.02 — n stock of HG Holdings, Inc., par value $0.02 per share, were outstanding. 1 Table

Filing Documents

• stly20240630_10q.htm (10-Q) — 1303KB
• ex_686311.htm (EX-31.1) — 14KB
• ex_686312.htm (EX-31.2) — 14KB
• ex_686313.htm (EX-32.1) — 4KB
• ex_686314.htm (EX-32.2) — 4KB
• 0001437749-24-026371.txt ( ) — 6972KB
• stly-20240630.xsd (EX-101.SCH) — 54KB
• stly-20240630_cal.xml (EX-101.CAL) — 54KB
• stly-20240630_def.xml (EX-101.DEF) — 367KB
• stly-20240630_lab.xml (EX-101.LAB) — 311KB
• stly-20240630_pre.xml (EX-101.PRE) — 392KB
• stly20240630_10q_htm.xml (XML) — 1383KB

– Financial Information

Part I – Financial Information 3

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) 3 Consolidated Balance Sheets – June 30, 2024 and December 31, 2023 3 Consolidated Statements of Operations – Three and Six Months Ended June 30, 2024 and June 30, 2023 4 Consolidated Statements of Changes in Stockholders' Equity – Three and Six Months Ended June 30, 2024 and June 30, 2023 5 Consolidated Statements of Cash Flows – Six Months Ended June 30, 2024 and June 30, 2023 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7

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

Item 2. Management' s Discussion and Analysis of Financial Condition and Results of Operations 23

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 26

Controls and Procedures

Item 4. Controls and Procedures 26

– Other Information

Part II – Other Information 27

Legal Proceedings

Item 1. Legal Proceedings 27

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 28

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 28

Other Information

Item 5. Other Information 28

Exhibits

Item 6. Exhibits 29

Signatures

Signatures 30 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Consolidated Fin ancial Statements

ITEM 1. Consolidated Fin ancial Statements HG HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) June 30, December 31, 2024 2023 (unaudited) ASSETS Cash and cash equivalents $ 9,379 $ 10,247 Restricted cash 15,281 7,505 Investments Fixed income securities, held-to-maturity 3,124 3,122 Investments in limited partnerships 1,831 1,280 Investments in related parties 10,562 10,834 Accounts receivable 339 136 Interest and dividend receivables 33 293 Prepaid expenses 322 223 Property, plant and equipment, net 76 120 Lease assets 446 582 Goodwill 6,492 6,492 Intangible assets, net 230 267 Other assets 821 803 Total assets $ 48,936 $ 41,904 LIABILITIES Accounts payable $ 33 $ 400 Accrued salaries, wages and benefits 532 350 Escrow liabilities 15,228 7,454 Other accrued expenses 435 344 Reserve for title claims 367 313 Lease liabilities 458 590 Other liabilities 33 32 Total liabilities $ 17,086 $ 9,483 STOCKHOLDERS' EQUITY Common stock, $ 0.02 par value, 35,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 2,813,214 and 2,861,547 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 52 53 Additional paid-in capital 30,491 30,491 Retained earnings 1,414 1,894 Total stockholders' equity 31,957 32,438 Noncontrolling interests ( 107 ) ( 17 ) Total equity 31,850 32,421 Total liabilities and stockholders' equity $ 48,936 $ 41,904 The accompanying notes are an integral part of the consolidated financial statements. 3 Table of Contents HG HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Six Months Ended Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Revenues: Net premiums written $ 1,670 $ 2,178 $ 3,074 $ 3,506 Escrow and other title fees 704 774 1,246 1,383 Management fees from r

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