$HGBL

Heritage Global Inc.

CIK:0000849145|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Total revenues	$ 12,265	$ 14,304	$ 24,990	$ 27,763
Operating costs and expenses:
Selling, general and administrative	10,839	6,140	18,458	12,674
Depreciation and amortization	240	118	414	236
Total operating costs and expenses	15,002	12,151	27,222	24,251
(Loss) earnings of equity method investments	(18,174)	79	(17,671)	123
Operating (loss) income	(20,911)	2,232	(19,903)	3,635
Interest income (expense), net	(65)	18	(85)	74
(Loss) income before income tax (benefit) expense	(20,976)	2,250	(19,988)	3,709
Income tax (benefit) expense	(5,088)	613	(4,817)	1,008
Net (loss) income	$ (15,888)	$ 1,637	$ (15,171)	$ 2,701
Weighted average common shares outstanding – basic	34,627,501	34,871,767	34,611,969	35,120,131
Weighted average common shares outstanding – diluted	34,627,501	35,506,250	34,611,969	35,800,352
Net income per share – basic	$ (0.46)	$ 0.05	$ (0.44)	$ 0.08
Net income per share – diluted	$ (0.46)	$ 0.05	$ (0.44)	$ 0.08
Services Revenue [Member]
Revenues:
Total revenues	$ 7,910	$ 10,266	$ 14,821	$ 17,914
Operating costs and expenses:
Cost of services revenue	1,120	2,972	2,172	4,647
Asset Sales [Member]
Revenues:
Total revenues	4,355	4,038	10,169	9,849
Operating costs and expenses:
Cost of services revenue	$ 2,803	$ 2,921	$ 6,178	$ 6,694

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net (loss) income	$ (15,171)	$ 2,701
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Amortization of deferred issuance costs and fees, net	(28)	(11)
(Loss) earnings of equity method investments	17,671	(123)
Noncash credit loss provision (recovery)	3,511	(4)
Amortization of right-of-use assets	434	340
Depreciation and amortization	414	236
Deferred taxes	(4,946)	555
Stock-based compensation expense	382	509
Changes in operating assets and liabilities:
Accounts receivable	(649)	(612)
Inventory - equipment	465	(278)
Other current assets	(186)	218
Accounts payable and accrued liabilities	(1,703)	602
Payables to sellers	(607)	705
Lease liabilities	(372)	(342)
Other non-current liabilities	(277)	0
Net cash (used in) provided by operating activities	(1,062)	4,496
Cash flows from investing activities:
Investment in notes receivable	(1,972)	(3,049)
Payments received on notes receivable	3,145	3,873
Acquisition	(8,460)	0
Investment in participating interest	0	(1,575)
Return of investment in participating interest	661	0
Investment in equity method investments	0	(1,575)
Return of investment in equity method investments	1,665	1,189
Cash distributions from equity method investments	485	123
Purchase of property and equipment	(771)	(7,567)
Net cash provided by investing activities	(5,247)	(8,581)
Cash flows from financing activities:
Proceeds from debt payable to third parties	1,000	4,100
Repayment of debt payable to third parties	(1,000)	(261)
Proceeds from secured borrowing	0	1,050
Repayments of secured borrowing	(752)	0
Payments of tax withholdings related to issuance of restricted common stock and stock option awards	(7)	(80)
Repurchase of common stock	(275)	(2,627)
Net cash (used in) provided by financing activities	(1,034)	2,182
Net change in cash and cash equivalents	(7,343)	(1,903)
Cash and cash equivalents as of beginning of period	20,522	21,749
Cash and cash equivalents as of end of period	13,179	19,846
Supplemental cash flow information:
Cash paid for taxes	468	650
Cash paid for interest, net of amounts capitalized	91	19
Noncash purchase of property and equipment	$ 713	$ 22

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 13,179	$ 20,522
Accounts receivable, net	2,509	1,857
Current portion of notes receivable, net	836	4,528
Inventory – equipment	5,466	5,931
Other current assets	1,009	756
Total current assets	22,999	33,594
Non-current portion of notes receivable, net	3,927	4,893
Equity method investments	1,239	21,060
Property and equipment, net	12,178	10,884
Right-of-use assets	1,084	1,518
Intangible assets, net	5,973	3,100
Goodwill	12,747	7,446
Deferred tax assets	9,348	4,402
Other assets	882	1,542
Total assets	70,377	88,439
Current liabilities:
Accounts payable and accrued liabilities	5,497	6,487
Payables to sellers	6,666	7,273
Current portion of third party debt	0	0
Current portion of lease liabilities	739	829
Other current liabilities	677	948
Total current liabilities	13,579	15,537
Non-current portion of third party debt	4,100	4,100
Non-current portion of lease liabilities	509	790
Other non-current liabilities	277	1,029
Total liabilities	18,465	21,456
Stockholders’ equity:
Preferred stock, $10.00 par value, authorized 10,000,000 shares; issued and outstanding 563 of Series N as of June 30, 2026 and December 31, 2025; 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 37,747,167 and 37,639,211 shares as of June 30, 2026 and December 31, 2025, respectively; and outstanding 34,639,445 and 34,741,553 shares as of June 30, 2026 and December 31, 2025, respectively	377	376
Additional paid-in capital	296,851	296,477
Accumulated deficit	(239,428)	(224,257)
Treasury stock at cost, 3,107,722 and 2,897,658 shares as of June 30, 2026 and December 31, 2025, respectively	(5,894)	(5,619)
Total stockholders’ equity	51,912	66,983
Total liabilities and stockholders’ equity	$ 70,377	$ 88,439